Is Your CPA Part Of Your Summer Routine?

Do your summer plans include a meeting with your CPA?  If they don’t, maybe they should!

Summer is upon us!  We love the hot weather, bright sunshine, and cool days in the pool.  And while everyone else is busy planning their beach time or camping trips — you could be busy planning your tax strategy and financial future.  Exciting stuff, right?

Okay!  We know the subject matter may seem dull.  But setting aside time to consider the future for yourself and your family is always a good idea.  And a major player in that future is your finances.

While we understand there comes a time, every year, when it would be nice to take a break from thinking about taxes — this is your gentle reminder that taxes do not take a break during the summer, and they are not waiting for your kids to be back in school.  Taxes occur year around and thinking about them throughout the year can be beneficial.

Did you know that for many — dare we say, “most” — the summer season is actually the BEST time of year to meet with your CPA?  A meeting during the “tax season” can only get you so far…

HERE ARE 3 REASONS WHY SUMMER IS A GREAT TIME TO MEET WITH YOUR CPA

Tax and retirement planning and strategy are easy to put off!  (There is plenty of time for that later, right?)  It may seem obvious, but it is worth repeating:  the longer you wait, the less you will be able to save.  The longer you wait, the more substantial the changes you will need to make to improve your tax position.  The longer you wait, the harsher the reality that you may not have the future you dreamed of because the money necessary to support that future has not been set aside.

1.  TIME AND ATTENTION

As we mentioned above, the general population is making other plans during the summer.  The “tax season” is behind them, and it is more fun to spend time doing other things.  That means your CPA has a little bit of a lull in their workload, giving them time to focus on you!  You will be able to meet with your CPA at a time that is more convenient for you due to your CPA having a less hectic schedule outside of those tax season months.  And with less on the books, they will be able to provide more personalized attention to your situation and needs, likely with a faster turn-around time.

2. A PROACTIVE APPROACH

Simply put, your annual tax return is a report to the Federal and State authorities, letting them know the results of your prior year from a financial standpoint.  There are some adjustments your CPA can make with the presentation of your tax return to soften the blow.  However, when it comes to making strategic and effective changes that will improve your overall tax position, options are limited at the time of tax preparation.

The time to mitigate your current year tax liabilities, and strategize for lesser taxes in the future, is not during the tax season.  It’s now.  Over the summer, sometime in the fall, or at the latest, in the month of November with at least 30 days left in the year.

A good CPA will help you take a proactive approach to your taxes with planning, strategy, and future considerations.  Not only can this improve your overall tax position, and help you avoid penalties and interest with more timely payments;  but in those years with unavoidable tax liabilities, being proactive gives you time to make adjustments that could minimize your tax burden, or at the very least, provide fair warning for the amount that will need to be paid.

With summer tax planning, your CPA can work through your tax questions, changes, and planning in real time.  Instead of reviewing your prior year information and letting you know what could have been done differently, your CPA can offer advice and guidance that is relevant now, to help you plan for the second half of the year, and prepare for the next tax season.

3. BUILDING GOOD HABITS

Special summer destinations are often expensive, especially with a family.  Dream vacations may take a couple years to plan and pay for.  And it can sometimes be difficult to manage the cost of those “wants,” with the cost of your “needs” and your annual tax requirements.  Therefore, tax planning plays an important role in your overall budget for current and future experiences.

Going back to #2, it’s all about being proactive.  And turning that proactive approach into an annual summer planning session with your CPA is an excellent habit to build.  Creating a routine around your finances, keeps you one step ahead, ensuring a level of financial health that goes beyond savings in the bank, and contributions to your retirement accounts.

Your summer CPA meeting can be used for whatever purpose you want, to make sure your finances are on track.  With a summer-review, your CPA can help you work through your finances year-to-date, look ahead to next year, and budget those big ticket items — all while keeping your tax liabilities in mind.  Doing so allows you to plan for- and enjoy- amazing summer experiences now and in the future, knowing your needs and taxes have already been taken into account with the budget you established with your financial professional.

Don’t forget!  Tax and Accounting services are available all year long.  So, make ATLAS part of your summer routine, and see what a difference a summer session can make.