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December 11, 2023

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Year-End Checklist: Key Tax Questions to Ask Your CPA

As we approach the end of the year, small business owners often gear up for pivotal discussions with their CPA, diving deep into tax strategies that can shape their upcoming year. These conversations are more than just routine; they’re vital opportunities to fortify your business’s financial foundation. Here’s an in-depth look at five key tax questions to prioritize in your upcoming consultation:

Tax Planning Strategies

What strategies can we implement before year-end to minimize our tax liability?

Maximizing after-tax profits is crucial, and early tax strategy consideration allows your business to leverage deductions and credits, often resulting in substantial tax savings. Small businesses often miss significant deductions and credits, leading to unnecessary tax burdens. Proactive tax planning can unlock these savings and optimize financial performance.

Deductions and Credits Review

Are there any potential deductions or credits that we might have missed during the year?

Overlooking deductions means leaving valuable resources unclaimed. Thoroughly reviewing for industry-specific deductions or credits is vital to reduce tax liabilities. Tailored deductions, such as those for research or energy efficiency, offer businesses additional opportunities to optimize their tax savings.

Financial Statements Review

Can you review our financial statements for accuracy and compliance? 

Accurate financial statements are integral not only for compliance but also for informed decision-making, stakeholder trust, and guarding against financial fraud. According to a recent report by the Association of Certified Fraud Examiners (ACFE), businesses with stringent financial controls, accurate reporting, and compliance measures are less vulnerable to fraudulent activities.

Enhancing Cash Flow Management

What strategies can we implement to enhance cash flow management in the upcoming year?

Effective cash flow management is indispensable for sustained operations and growth. Addressing strategies now can prevent shortages, reduce borrowing costs, and refine financial planning. Poor cash flow management is a leading cause of business failures. A proactive approach can mitigate risks and strengthen your business’s financial standing.

Compliance with Tax Laws

Are there any upcoming changes in tax laws or regulations that might impact our business in the next fiscal year?

Staying up-to-date on evolving tax laws is crucial for strategic planning and avoiding unforeseen financial impacts. Consistent changes in tax codes often pose challenges for businesses. Awareness and proactive compliance planning are vital to navigate these changes seamlessly.

What’s Next

Engaging in these conversations with your CPA sets the stage for your business’s financial well-being in the coming year. At Wilke CPAs & Advisors, we’re committed to your success. Feel free to reach out for comprehensive advisory services throughout the year. Contact us today to get started. 

For further insights into strategic year-end discussions, explore our article on 5 Critical Discussions for Business Growth

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