Monday, December 23, 2024

A taxing situation? Here are some tips that may help

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When starting a new business, lots of decisions must be made, from hiring to branding to mission and more.

Figuring out how to handle your business’s accounting and tax needs is another important piece of the puzzle. We turned to a certified public accountant to offer tips on how to make sure your business is in the best possible position when tax time comes.

Megan McCary

| Courtesy Northwest CPA Group

Megan McCary is a CPA with Northwest CPA Group in Richland. 

She grew up north of Pasco and graduated from Washington State University, studying accounting and agricultural economics. 

The business is in her blood; her mother was a bookkeeper, and an accounting class at Columbia Basin College got McCary hooked enough to continue with her studies and pursue a career in the field. 

McCary has been with Northwest CPA Group for 13 years.

She works primarily with small businesses in agriculture and across other fields. Her clients typically have 100 employees or fewer.

Here’s her top advice as tax season approaches:

Hire an expert

Tax law can be complex, and McCary advises turning to a professional.

“We’ve taken the time to learn about those complexities and gotten the education,” she said, so beyond handling tax returns they’re also able to provide information to help clients make the best decisions for their business throughout the year.  

“If they’re looking at buying equipment or buying real estate, (we can help answer the question), how would that benefit them from a tax perspective?” she said. 

Shop around

That said, it’s an important relationship – a trusted one, McCary said. That means it’s vital that it’s the right fit.

Strong credentials are important, and it’s also critical that the person be reachable and responsive, McCary said.

“I always remind people that it’s OK to shop around and find that right person, not just from a price standpoint. Price is important, too, but it’s an important relationship. You want to mesh with your CPA. I learn a lot about my clients … about their personal lives and their finances, so I want them to get along with me,” she said.

McCary recommends looking to other small businesses for recommendations. Word of mouth is powerful, she said.

The Better Business Bureau also offers tips on how to find the right tax preparer, CPA or tax attorney. Go to: bbb.org/all/taxtips/us/how-to-choose-a-tax-preparer-us.

It’s never too late

McCary recommends engaging with a CPA as you’re starting your business to make sure you’re on the right footing.

But it’s not too late if you’re already up and running or have been operating for years. They can help at any stage, she said.

Fall is a good time to bring one into your circle, as it leaves time to prepare as tax season approaches. They can be more effective with more time but can offer help regardless, McCary said.

“For businesses, there’s so much focus on the tax return itself, but somebody like myself can help with planning before the end of the year or during the year,” she said. “Having that advisor available to you, that person in your corner who can help plan when something is going on, help to save (on taxes)” is invaluable.

The right financial system

Choosing a system to help with bookkeeping is another important decision. 

“Getting books and records set up, figuring out how you’re going to be tracking business income and expenses – there are all kinds of options, software wise,” McCary said. “Sometimes it can be overwhelming to navigate what is needed, and so a resource like a CPA or a tax advisor can help navigate what can be customized to your business. It’s one of those things I always tell clients: you can make it as simple as you need it, or as complex as the business needs.”

Assemble trusted team

A financial professional is important, and McCary also recommends bringing an attorney into your circle.

“We handle the tax side of things, but it’s always good to consider talking to an attorney when forming a new business, especially if you’re looking at (something like) an LLC. Having an attorney and a CPA in your corner is building that trusted advisor team,” she said.

For her, being part of a business’s team means a lot.

She likes the variety of her work and the chance to problem solve. “We get to figure out ways to help,” she said. “It’s very rewarding.”

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