You work hard to keep your business alive. You watch cash, juggle bills, and worry about taxes. A strong relationship with your accountant can remove some of that weight. Yet many owners stay quiet in meetings and leave with the same confusion. That silence costs money. It also steals sleep. You deserve clear answers in plain language. You also deserve a partner who understands your goals, fears, and deadlines. When you ask the right questions, your CPA can spot hidden risks, missed credits, and simple steps that protect you. This is true whether you run a new shop or a long standing company. It is also true whether you use a local CPA in Bartlett, TN or a national firm. The questions in this guide help you speak up, get honest guidance, and use your numbers to protect your business.
1. What should I watch in my financial statements each month?
Many owners only look at the bottom line. That habit hides warning signs. You need to know which numbers matter and how often to check them.
Ask your CPA to walk through three key reports with you.
- Profit and loss statement
- Balance sheet
- Cash flow statement
Then ask which three numbers on each report you should watch. Common ones include:
- Gross profit
- Net profit
- Total debt
- Cash on hand
- Accounts receivable aging
Request simple examples. For instance, ask what happens if your gross profit drops three months in a row. Ask what that means for hiring, buying equipment, or taking money out of the business.
You can review plain language guides to financial statements from the U.S. Small Business Administration.
2. How can I lower my tax bill without breaking rules?
Taxes can drain cash. You want to pay what you owe. You also want to avoid paying more than the law requires.
Ask your CPA three direct questions.
- Which tax credits might fit my business
- Which expenses should I track better
- Which choices today change my tax bill next year
Request clear steps, not theory. For example:
- Set up a simple system to store receipts
- Track business use of your car
- Review major purchases before you sign
Also, ask how often you should check in on tax planning. Many owners wait until filing season. That is too late. A short meeting during the year can uncover problems early.
The Internal Revenue Service offers small business tax guides. You can use these pages to confirm what your CPA explains.
3. Is my business structure still right for me?
You may have set up as a sole proprietor, partnership, LLC, or corporation years ago. Your life has changed. Your business has changed. Your structure may not match your risk or tax needs anymore.
Ask your CPA three things.
- What is my current structure and why does it matter
- Would another structure cut my risk or taxes
- What would it cost in time and money to change
Then ask for plain examples, such as:
- How a change might affect your personal liability
- How your own paycheck from the business might change
- How much extra recordkeeping would you face
Request a simple chart from your CPA that compares your current structure with one or two options. You can use the sample table below as a guide.
|
Factor |
Current Setup |
Option 1 |
Option 2 |
|---|---|---|---|
|
Owner pay method |
Owner draws |
Wage plus draws |
Wage only |
|
Personal risk level |
High |
Medium |
Low |
|
Tax paperwork load |
Low |
Medium |
High |
|
Fit for new investors |
Weak |
Medium |
Strong |
Use this kind of table in your talks with your CPA. It keeps the focus on facts that affect your family and staff.
4. How strong is my cash flow, and how can I improve it?
Profit does not pay bills. Cash does. A full order book means little if money comes in too late to cover rent and payroll.
Ask your CPA these questions.
- Do I have enough cash to cover three months of fixed costs
- How long does it take customers to pay me
- Where does cash leak out in ways I can control
Then ask for three steps to strengthen cash flow. Examples include:
- Change invoice terms for slow-paying customers
- Set up simple payment plans for large jobs
- Delay non-urgent purchases during slow seasons
Also, request a short cash flow forecast. This does not need complex math. A simple three-month view with expected cash in and cash out can show if you face a crunch soon. You and your CPA can then plan credit needs or spending cuts before stress hits.
5. What is my break-even point, and how can I lower it?
Your break-even point is the sales level where your revenue covers your costs. Above that line, you earn profit. Below it, you lose money. Knowing this number gives you a clear target for each month.
Ask your CPA three questions.
- What is my current monthly break-even sales level?
- Which costs drive that number the most
- What small changes could lower that number
Then talk through options. For example:
- Cut or combine underused software and service contracts
- Adjust prices on products that always sell out
- Change staffing patterns to match busy and slow times
You can also ask for a simple chart that shows how your break-even point changes with different price or cost moves. That picture can guide safer choices when the economy feels rough.
How to use these questions in every meeting
These five questions work best when you use them often. You do not need long talks. You need regular talks.
- Bring printed questions to each meeting
- Write answers in plain words
- End each visit with three action steps and due dates
Also, ask your CPA what you should send ahead of time. Clean records and clear goals help your CPA give sharp advice that protects your business and your home life.
