Far too often, the relationship between a business and their CPA is centered around tax season.

The books are closed, financials are provided, tax returns are prepared, and the owner finds out what they owe. Then the process is repeated following year.

Tax prep is important, but we believe a strong CPA relationship should provide value throughout the year.

At Durkin Advisory Group, we view accounting, tax, and advisory services as connected parts of the same relationship. When those services work together, business owners can make better-informed decisions, plan ahead, and avoid unnecessary surprises.

Here are a few things business owners should expect from a proactive CPA relationship.

1. Accurate Financial Information Throughout the Year

Good tax planning starts with good accounting.

Business owners shouldn’t have to wait until tax season to understand how their business performed. Their financial records should be maintained throughout the year, and financial statements should provide a reliable picture of the business.

Accurate, timely bookkeeping can help answer questions such as:

• Is the business actually profitable?
• How is this year comparing with last year?
• Where is cash going?
• Are expenses increasing faster than revenue?
• How much can the owner reasonably take from the business?
• Are there issues that should be addressed before year-end?

Financial statements shouldn’t simply be something prepared for a tax return. They should help an owner understand and operate the business.

2. Tax Planning Before the Year Is Over

There is an important difference between tax preparation and tax planning.

Tax preparation generally looks backward. Once the year has ended, many of the decisions that could have affected the tax result have already been made.

Tax planning looks forward.

Depending on the business and its owners, that might involve reviewing estimated tax payments, evaluating owner compensation, considering retirement contributions, planning the timing of income or expenses, or evaluating other available tax strategies.

Not every business needs complicated tax planning every quarter. But business owners should have an opportunity to identify important issues before the window to act has closed.

3. Coordination Between the Business and Its Owners

For closely held businesses, business and personal tax planning are often closely connected.

An S corporation owner’s salary and distributions can affect the owner’s personal tax situation. Business income can affect estimated tax payments. Retirement plan decisions can affect both the company and its owners. A major equipment purchase, new employee, real estate transaction, or ownership change may have consequences beyond the business itself.

Looking at the business return in isolation can miss part of the picture.

A good advisory relationship should consider how decisions at the business level affect the people who own it.

4. Proactive Communication

Business owners shouldn’t need to know every question they should be asking their CPA.

Sometimes the most valuable conversation starts with the accountant noticing something first:

Revenue is up significantly. Should we revisit your tax projections?

Payroll has changed. Should we review owner compensation?

Profitability has declined even though sales increased. What’s driving it?

The business has accumulated significant cash. What should we be thinking about?

A proactive relationship doesn’t mean having unnecessary meetings every month. It means creating opportunities to identify and discuss important issues while there is still time to do something about them.

5. Advice That Evolves With the Business

The accounting needs of a new business can be very different from those of an established company.

Early on, the focus may be entity setup, bookkeeping, payroll, tax registrations, and basic compliance. As the company grows, the questions often become more strategic: profitability, cash flow, tax planning, compensation, hiring, financing, expansion, and eventually succession or a sale.

The CPA relationship should evolve along with those needs.

Moving From Reactive to Proactive

There will always be an important role for compliance work—keeping accurate books, filing returns, processing payroll, and meeting deadlines.

But those services also create the information needed to do something more valuable: plan ahead.

We believe the best accounting relationships connect the pieces:

Accurate accounting → meaningful financial information → proactive tax planning → better business decisions.

That is the approach we’re building at Durkin Advisory Group: practical accounting and tax services combined with the level of year-round guidance each client actually needs.

Durkin Advisory Group provides accounting, tax, and advisory services to businesses and their owners. If you’d like to discuss your business and the level of support that makes sense for you, we’d be happy to connect.