BUSINESS
6 Questions Small Business Owners Should Ask Their CPA
You work hard for your business. You carry the risk, lose sleep, and often feel alone with money decisions. A strong CPA partnership removes some of that weight. Yet many owners meet once a year, sign the return, and leave with the same worries. That routine keeps you in the dark. You need clear answers that protect cash, lower taxes, and reduce fear. This blog gives you six blunt questions to ask your CPA, so you stop guessing and start leading. Each question helps you test if your CPA understands your goals, your numbers, and your stress. If you use a Savannah tax accountant or any other CPA, these questions still apply. By the end, you will know what to ask, what to listen for, and when to push for more detail. Your business depends on it. Your peace of mind does too.
1. “What keeps you worried about my numbers?”
Start with risk. You deserve to know what could hurt your business. Ask your CPA what makes them uneasy when they look at your books. Then ask where the proof sits in your reports.
Listen for three things.
- Clear risks such as low cash, rising debt, or unpaid payroll tax
- Specific dollar amounts or timeframes
- Plain language that you can repeat to your spouse or partner
If the answer feels vague, ask again. Say, “Point to the line on the report that shows this.” You do not need complex terms. You need a simple warning that you can act on this month.
2. “How much cash should I keep in the bank?”
Many owners guess on cash. That guess turns into panic when a slow season hits. Your CPA should help you set a target cash cushion that fits your size and risk.
The table below shows a simple starting point. It uses monthly expenses before the owner pays. Your CPA can adjust it for your business.
| Business type | Monthly expenses (before owner pay) | Suggested cash cushion
|
|---|---|---|
| Solo service | $5,000 to $15,000 | 2 months of expenses |
| Small team, low inventory | $15,000 to $60,000 | 3 months of expenses |
| Retail or heavy inventory | $30,000 and up | 3 to 6 months of expenses |
Ask your CPA to run your last year of spending and give you a number. Then ask how to reach that number over the next twelve months without starving the business.
3. “What are the three biggest tax moves I can make this year?”
Do not ask, “How do I pay less tax?” That question is too broad. Instead, ask your CPA for three clear moves you can make this year. Each move should have a cost, a benefit, and a deadline.
For example, your CPA might suggest three common steps.
- Change your business structure for better self-employment tax results
- Increase retirement plan savings
- Time major equipment buys with your cash cycle
Ask for each move in writing with numbers. You can compare the advice with trusted guidance from the IRS. For example, you can read about small business tax responsibilities at the IRS Small Business and Self-Employed Tax Center at https://www.irs.gov/businesses/small-businesses-self-employed.
4. “How should I pay myself?”
Owner pay confuses many business owners. Some pull cash when they feel stressed. Some skip pay to keep staff on. Both patterns drain you and blur the true cost of your business.
Your CPA should help you set a steady plan for owner pay that does three things.
- Covers your household needs
- Stays within tax rules for your business type
- Leaves enough cash for payroll, rent, and tax
Ask your CPA to show you three numbers. First, your average monthly business profit. Second, a safe monthly owner pay amount. Third, a monthly set-aside amount for income tax and self-employment tax. When you see these numbers, money choices become calmer.
5. “How often will we talk and what will you show me?”
Once a year is not enough. Your business shifts fast. You need a set rhythm with your CPA that keeps you informed and steady.
Ask for a clear schedule.
- How many meetings per year
- What reports you will review
- Who prepares the numbers and by when
Every meeting should include at least three simple reports. A profit and loss report. A balance sheet. A cash summary. You can learn more about these basic reports from free training at the U.S. Small Business Administration at https://www.sba.gov/. Then ask your CPA to walk through your reports using short words and clear answers.
6. “What do you need from me to do your best work?”
Your CPA can only work with what you give. Late records and missing receipts raise your tax and your stress. You can lower both with a simple checklist.
Ask your CPA to list three things that would help them help you.
- How often should you update your bookkeeping
- What documents to upload each month
- Which habits cause problems during tax season
Then ask for a short written process that your staff or family can follow. Clear routines reduce mistakes. They also reduce surprise notices from tax agencies.
Turning questions into action
Strong questions show strength, not doubt. When you ask these six questions, you send a message. You care about your numbers. You also care about your team and your family.
If your CPA gives patient-specific answers, hold on to that partner. If they rush you or speak in circles, consider a change. Your business deserves straight talk. Your life at home does too.