As an agency owner, managing your taxes and finances is a critical aspect of running your business successfully. In our previous blog, we looked at various strategies to feel more confident implementing financial and tax planning strategies. A well-crafted tax plan can offer numerous benefits that go beyond saving money.

What You Can Expect From Tax Planning Strategies

To better serve agency owners, we recently conducted an attitudinal research study to find out how much financial knowledge they have, their perceptions of CPAs, and how they can enhance their relationship with them. In today’s blog, we’ll discuss what you expect from a good tax plan and how it can address your unique needs and challenges.

Benefits of Working With an Industry-Specific CPA

One of the most valuable aspects of good tax planning strategies is having a CPA who thoroughly understands the intricacies of agency life, which has multiple benefits. They are familiar with industry-specific factors such as media spend and its impact on profitability. Plus, they can provide insights into:

• Managing cash flow effectively
• Understanding the cash versus accrual basis
• Optimizing financial metrics for agency operations

When creating tax plan strategies, your CPA should also give you a network of referral partners and contacts to help you grow. Experienced CPAs often have a pool of trusted professionals in law, pension planning, and cost segregation. The right CPA can also optimize your 401(k) program to meet your long-term financial goals.

Another key marker of a good tax plan goes beyond checking boxes and provides individualized tax advice that caters to the unique circumstances of each agency owner. It includes strategies that align with your challenges, goals, and growth plans. A comprehensive tax plan should encompass tax preparation, tax planning, and audit prevention techniques. It should also offer a high-level overview of tax code opportunities, providing you with a clear understanding of how to minimize your tax burden within the appropriate legal constraints.

The Importance of a Strong Tax Plan

Maintaining regular communication with your CPA is crucial for a successful tax plan. Monthly meetings to review your finances can help you stay accountable, prepare for tax time, and plan for your financial activities. These regular check-ins ensure that your financial strategy remains aligned with your business objectives and enables you to leverage tax opportunities throughout the year.

When working with your CPA on tax planning strategies, they should be able to provide resources for education and continued learning. Offering insights through social media posts, webinars, Q&As, blogs, books, or their website can empower agency owners with knowledge about benefits and deductions they can take advantage of. A strong tax plan should seamlessly integrate with your overall financial strategy.

It’s especially important to get personalized advice to make informed financial decisions and reduce your tax burden. As discussed in our previous blog, your CPA should be proactive so you can take advantage of deductions and other opportunities.

Closing Thoughts

Finding a trustworthy and knowledgeable CPA is paramount to a successful tax plan. Look for CPAs with high net promoter scores (NPS). Scores above 50 indicate a high level of client satisfaction. An experienced CPA specializing in the agency industry and staying up-to-date with changing tax codes is an invaluable asset to your financial success.

Agency owners should expect good tax plan strategies to offer more than just tax savings. It should encompass industry expertise, tailored advice, networking opportunities, regular communication, education, and seamless integration with your financial strategy. By partnering with a CPA who understands your unique challenges and goals, you can confidently navigate tax planning and financial management while reaping the benefits of a well-crafted tax plan.

To learn more about each segment’s behaviors and the opportunities they present, check out our entire executive summary. And to explore the data yourself, check it out here.