Top 7 Questions to Ask an Accountant

Certified accountants have the knowledge and experience needed to help you navigate the taxes and finances specific to your business. However, it’ll take the right accountant with the appropriate experience and background to give you the support that you need. To help you find the right accountant for your business, we’ve developed a list of questions to ask an accountant.

4 Essential Questions to Ask an Accountant

1. What records should I maintain?

You’ll need to maintain different records for everything from financial statements to payroll records. Your accountant will likely encourage you to maintain records that pertain to expenses, gross receipts, and purchases, so you can track your business’s debits, credits, and income. 

This includes:

• Bank account statements
• Canceled checks or other documents proving payment/electronic funds transferred
• Cash register tapes
• Credit card receipts and statements
• Deposit information (cash and credit sales)
• Forms 1099-MISC
• Invoices
• Receipt books

Ask your accountant if they have a specific software or record maintenance system that they use for their clients. 

2. Are there new tax laws or changes to other business regulations I should be aware of?

Your accountant will have a good sense of any recent changes to tax law and other business regulations that could impact your company. The IRS outlines some changes that may impact tax filings in 2023. Some changes include:

• No additional stimulus payments
• Some tax credits return to 2019 levels
• No above-the-line charitable deductions
• More people may be eligible for the Premium Tax Credit
• The Inflation Reduction Act of 2022 changes the eligibility rules to claim a tax credit for clean vehicles

These are just a few changes at the federal level, but you may be subject to additional rules and regulations at the state and local levels. An accountant will help ensure you are above board in all of these areas. You’ll want to do this on an annual basis as tax laws change from year to year.

3. What is the best way to prepare for tax season?

It’s always a good idea to prepare for tax season as early as possible. However, if gathering your records and submitting your return causes you anxiety, this is where a seasoned accountant can ease your burden. 

One of the key advantages of working with an accountant is that they work throughout the year to help prepare you to file your taxes — meaning you won’t have to scramble in April as the deadline approaches. A potential accountant should be able to tell you what strategies and processes they use to file taxes accurately and efficiently. 

4. What business expenses are deductible?

As a financially responsible business owner, you’ll want to know what business expenses are deductible so you can maximize your tax savings. Let your accountant know what business expenses you make or plan to make in a given year, and they can help determine if a deduction is available. The IRS provides a thorough outline of deductible business expenses, so do a little research ahead of time if you want to ask about a particular deduction.  

What Questions to Ask an Accountant When Starting a Business

1. What business structure is best for my situation?

The size and scope of your company may dictate the way you structure your business, but if you have some flexibility, you can work with your accountant to determine the structure that will work best for your situation. There are five main types of business structures:

• C corporation (C corp)
• Limited liability company (LLC)
• Partnership
• S corporation (S corp)
• Sole proprietorship

Your accountant will have a better sense of the tax and legal nuances of the various structures, so be sure to go into your meeting prepared with details about your business operations. 

2. What are my tax obligations?

A vital piece of information every business owner needs to be aware of is how much they’ll owe in taxes, including quarterly estimated tax payments. Be sure to ask your account how much you should set aside to cover your tax obligation and when you will need to pay your tax bill. 

Also, ask your accountant about how income taxes will impact your tax obligation. It’s best to plan ahead rather than wait until the last minute in April to get started on your tax filing. Remember to max out your applicable accounts ahead of tax day to reduce your taxable income. If you end up owing the IRS money, you might work with your accountant to determine the best way for you to pay your bill. If you do get a refund, consider the best way to spend or invest it and consult with your accountant if need be.

3. How can I grow my business?

While your accountant will not be an expert in marketing or engineering, they will be able to provide insight into how you can grow your business from a financial perspective. Profitability will be one key to your growth, and your accountant can help you to determine your break-even point.

Work with Expert Small Business Accountants

If you don’t have the time or know-how to do your own accounting, consider consulting with 1-800Accountant today. We provide tailored services with unlimited support, a dedicated accountant, and transparent pricing. Not only can we help with tax preparation but also entity formation and accounting services. 

Schedule your free 30-minute consultation to learn how our small business tax professionals can help you and your company today.