Things Your Accountant Needs To Know
POSTED ON September 13, 2023
BY Mallory Sage

What does your accountant need to know anyway? Keeping your accountant in the loop is important. Keeping your accountant in the know means they can help you save money in the long run. Let’s get specific.

Why should you keep your accountant updated?

There are a lot of seemingly small purchases or changes you may make without thinking to tell your accountant or discussing it with your accountant ahead of time. It may not seem like a big deal in the moment, but there are very few financial choices you make that don’t have tax implications. Some things may have a bigger impact than others, but it’s always important to loop your accountant in so they can advise you before you finalize a financial decision.

Things Your Accountant Needs To Know…

About Your Business

Every step in creating and changing your business can have significant tax implications. What entity type are you choosing – and why? Are you planning to add a new partner? Is a partner leaving? Do you want to employ your kids? Maybe you’ve decided to sell your company – when and how should you do it for the sale to be as beneficial to YOU as possible? In the same vein, maybe you’re buying or merging with another company. For every decision, there is a “best” way to do it for you and your specific tax situation.

About Your Life

When you’re sending out baby announcements, your accountant probably isn’t high on your priority list. While your accountant may not need to a receive a post card announcing your new child’s birth, it is important that you let them know when a new member is added to the family. The same goes for any family changes like death, marriage, divorce, or adoption. Even transactions like buying or selling investment properties or adding solar to your home or other properties are important for your accountant to know.

About Your Retirement

What retirement plan you choose is incredibly important, and sometimes your accountant may know more about the tax implications of each plan than your financial advisor. Checking in with your accountant before you move forward with a retirement plan will let them look at what option has the best tax savings for you. Different plans have different advantages and drawbacks. While you’re at it, always let your accountant know if you’re pulling money from a retirement account early.

Keep Your Accountant in the Loop – and Save

Knowing what’s going on in your life means we can help you avoid headaches and save money. It’s not your job to understand how changes in your business or personal life are going to effect your taxes – leave that to us.

And let us know before you make these decisions because knowing before allows us to help you strategize and make changes in the most advantageous way possible. If you want insight on how changes you’re planning to make might effect your tax situation, set a meeting with us and we’ll help you understand all of your options.