3 Questions Business Owners Should Always Ask Their CPA
You carry heavy pressure as a business owner. Cash flow, payroll, and taxes all demand hard choices. In that noise, your relationship with your CPA often decides whether you stay ahead or scramble at the last minute. A strong CPA does more than file returns. The right one helps you see risk early, protect profit, and plan for growth with clear numbers. This matters even more if you work with a local CPA in Tomball who understands state rules and local business costs. You do not need complex charts or long reports. You need straight answers to a few sharp questions. When you ask the right questions, you gain control. You see where money leaks. You see where tax law helps you. You see what must change now, not next year. The three questions in this blog keep your CPA honest and your business steady.
1. “What story do my numbers tell right now?”
Your numbers tell the truth when people may not. You need your CPA to read that truth in plain words. Do not settle for “You are doing fine” or “Profits look good.” Ask for clear answers to three points.
- Are sales growing, flat, or falling
- Are costs rising faster than sales
- Is cash staying in the business or slipping away
Request simple reports that match these points. Ask for a one-page summary with three parts. You can also study free tools. The U.S. Small Business Administration gives basic guides on cash flow and profit at SBA cash flow guidance.
You should also ask your CPA to point to three numbers each month that matter most. For many owners, these are:
- Net profit
- Cash balance
- Debt payments due soon
Then ask how each number changed from last month and last year. You do not need long stories. You need one sentence on why each number moved and one sentence on what to do next.
2. “How can I lower taxes without hurting my future?”
Tax rules can feel cold and harsh. Still, smart planning reduces strain. You want lower tax bills. You also want strength for your family and staff in later years. Your CPA must balance both.
Ask your CPA to walk through legal steps that fit your size and goals. You can check basic IRS guidance at the official IRS small business resources. Then use that as a base for a deeper talk. Bring up three main topics.
- Business structure and if it still fits
- Retirement plans for you and staff
- Timing of income and large costs
Request that your CPA show how each choice changes both tax now and wealth later. Ask for simple numbers, not tax code notes. For example, compare keeping cash in the business with taking it out as pay. The table below shows a plain view.
| Choice | Short term effect | Long term effect | Questions to ask CPA |
|---|---|---|---|
| Take more pay now | Higher tax this year | More personal savings today | Will this push me into a higher bracket |
| Leave cash in business | More funds for stock and staff | Stronger company value | How is business income taxed compared to my pay |
| Add retirement plan | Lower taxable income | More money for later years | What plan fits my budget and staff size |
Ask your CPA to mark which row fits you today. Then ask what must change so the best row becomes real within one year.
3. “What should I fix in the next 90 days?”
Long plans often sit on a shelf. Short plans lead to action. A clear 90-day focus helps you and your family breathe easier. It also gives your staff a target they can reach.
Each time you meet your CPA, ask for three top fixes for the next 90 days. These might be:
- Collect past due invoices faster
- Cut one wasteful cost
- Build a cash reserve for one month of costs
Ask your CPA to list each fix with one step you can start this week. For example, if past due invoices hurt cash, your first step might be to send clear payment terms on every new bill. Your second step might be to set a date each week for follow-up calls.
You can track progress in a simple chart. Meet again in 90 days. Review what you did, what worked, and what failed. Then set the next three fixes. Over time, these short cycles protect your business through hard seasons.
How to prepare before you meet your CPA
You get stronger answers when you bring clear facts. Before each meeting, gather three groups of records.
- Bank and credit card statements for the last three months
- Payroll reports and major bills
- Any letters from the IRS or state tax office
Also, write a short list of worries. For example, you might fear a sales drop, a large loan, or a tax notice. Share these early in the talk. This helps your CPA focus on what keeps you awake at night, not on side issues.
When you may need a new CPA
Trust and clear talk matter. If your CPA uses complex terms, avoids your questions, or rushes you, that is a warning sign. You deserve someone who:
- Speaks in plain words
- Answers emails within a fair time
- Admits when something is uncertain
If you feel pushed aside, start meeting other firms. Bring the three questions in this blog to those meetings. Notice who answers with patience and facts. That person is more likely to stand with you when stress hits.
Take your next step today
Your business supports your home, your staff, and your community. You do not need to be a tax expert. You do need to ask sharp questions and expect clear, steady answers. Use these three questions in your next meeting. Then listen for quiet, direct truth. That truth can protect your money, your time, and your peace of mind.
