Essential Questions to Ask Your Accountant Each Year

Regular communication with your accountant is vital for effective financial management and strategic planning. Your annual meetings are a chance to review your financial status, address any concerns, and optimise your tax and financial strategies. To make the most of these meetings, it’s important to come prepared with the right questions. Here’s a guide to the essential questions you should ask your accountant each year to ensure you’re on track and making informed decisions.

1. How did my financial performance compare to last year?

Understanding how your financial performance stacks up against previous years is crucial for assessing growth and identifying areas for improvement. Ask your accountant to compare your current financial statements with those from the previous year and provide insights into any significant changes or trends.

2. What are the latest tax law changes that could affect me? Tax laws can change frequently, and staying informed about these changes is essential for effective tax planning. Ask your accountant about any recent tax law changes that might impact your financial situation, including adjustments to tax rates, deductions, or credits.

3. Are there any new deductions or credits I should be aware of? Tax credits and deductions can significantly impact your tax liability. Inquire about any new deductions or credits that have become available and whether you qualify for them. Your accountant can help you take advantage of these opportunities to reduce your tax burden.

4. What strategies can I implement to reduce my tax liability? Effective tax planning involves identifying strategies to minimize your tax liability. Ask your accountant for recommendations on tax-saving strategies, such as retirement contributions, charitable donations, or investment adjustments. They can help you implement these strategies to maximize your savings.

5. How can I improve my financial management practices? Regularly reviewing your financial management practices can help you identify areas for improvement. Ask your accountant for advice on how to enhance your financial practices, including budgeting, cash flow management, and expense tracking.

6. What are the key financial metrics I should monitor?

Understanding key financial metrics is important for assessing the health of your business or personal finances. Ask your accountant which metrics are most relevant to your situation and how you should monitor them to make informed financial decisions.

7. How can I better plan for major expenses or investments?

Major expenses or investments, such as purchasing a home or expanding your business, require careful planning. Discuss any upcoming significant expenses or investments with your accountant and seek their advice on how to plan for these financial commitments.

8. What are the risks and benefits of my current financial strategies?

Every financial strategy comes with its own set of risks and benefits. Ask your accountant to review your current strategies and provide insights into potential risks and benefits. This will help you make informed decisions and adjust your strategies as needed.

9. How should I prepare for any upcoming tax deadlines?

Meeting tax deadlines is crucial to avoid penalties and interest. Inquire about any upcoming tax deadlines and ask your accountant for advice on how to prepare and stay compliant. This includes ensuring all necessary documentation and filings are completed on time.

10. Are there any changes I should make to my financial plan?

Your financial situation can change over time, necessitating adjustments to your financial plan. Discuss any changes in your circumstances, such as changes in income, family status, or business operations, and ask your accountant if adjustments to your financial plan are needed.

11. How can I optimise my investment portfolio?

If you have investments, optimising your portfolio is important for achieving your financial goals. Ask your accountant for advice on how to review and adjust your investment portfolio to ensure it aligns with your risk tolerance and financial objectives.

12. What are the best practices for record-keeping and documentation?

Proper record-keeping is essential for accurate financial reporting and tax compliance. Ask your accountant about best practices for maintaining records and documentation. This includes how long to keep records and the types of documents you should retain.

13. How can I better prepare for retirement?

Planning for retirement requires careful consideration and strategy. Discuss your retirement plans with your accountant and seek their advice on how to optimise your retirement savings and plan for a financially secure retirement.

14. What should I know about estate planning?

Estate planning is an important aspect of managing your assets and ensuring they are distributed according to your wishes. Ask your accountant about estate planning considerations and how to integrate these into your overall financial plan.

Asking the right questions during your annual meeting with your accountant can help you gain valuable insights, optimise your financial strategies, and stay on track with your goals. By preparing thoughtful questions and discussing your financial situation in detail, you can make informed decisions and ensure your financial security.

At MP Accounting, we’re committed to providing personalised advice and support to help you make the most of your financial strategy and achieve your goals. Contact us today to schedule your annual appointment and get expert guidance tailored to your needs.