Why Does My CPA Keep Finding Problems?
The Questions That Never Stop
Every year we get to visit our CPA. We turn over our books and records so they can produce our tax returns. And then the questions start!
- Can you get me the bank statements?
- Can you get me statements for all the truck loans?
- Were all these meals “business meals”?
- Why were payments to ________ classified as repairs and maintenance?
- Are some of the items in “office expense” actually personal expenses instead of business expenses?
The list can go on and on.
How I Used to Grade My Own Bookkeeping
In the past I was CFO (Chief Financial Officer) for a contracting conglomerate with ten (10) operating companies. And each year I tracked the number of year-end questions I received from the CPA. It was a way that I graded the department that I led. Lots of questions meant we hadn’t done a thorough job. Few, or no, questions meant we had nailed it.
What To Do About It
Don’t forget, every time the CPA comes back to you with another question, the meter is running. The more time the CPA spends getting the information they need, the bigger the fee for the tax return.
Want this handled every month? Our construction fractional CFO service directs your bookkeeper's month-end close and coordinates with your CPA, so year-end stops being a cleanup project.