Has your CPA firm embraced technology like RPA bots that help accountants tackle mundane tasks?
Getty
Need business advice? Call your CPA firm. “This year was the perfect case study for why companies should consider leaning on their CPAs as key advisors,” says Carla McCall, managing partner with regional powerhouse AAFCPAs in Westborough, Massachusetts.
CPA firms deliver foremost on audit and/or tax services. But these days many of them do much more. “We’re a solutions provider,” says McCall. As the Covid-19 pandemic rages, that means providing a range of advice: how to capitalize on new delivery models, how to navigate furloughs and payroll changes, how to prevent cyber attacks. Even companies that were doing well before the coronavirus weren’t on top of forecasting. All of a sudden everything stopped. They needed help. ASAP. Did your CPA firm come to the rescue?
“Every one of our clients contended with the economic effects of the pandemic in 2020; now they’re looking to 2021, and they’re worried, ‘When is the whiplash?’ Is 2021 going to be a stable year, or is it one where we’re going to go backwards?” says Alan Whitman, CEO of Baker Tilly US. “Every business is going to have to reinvent itself going forward. We’re experiencing that and helping our clients reimagine their future too.”
For the second year, Forbes has partnered with market research company Statista to create a list of the most recommended firms for tax and accounting services in the U.S. Of the 278 firms identified, 250 were recommended for tax services and 200 were recommended for accounting services. That means there was lots of overlap, with 172 firms recommended for both tax and accounting services.
Click here for the full list of America’s Top Recommended Tax And Accounting Firms.
Here are some key issues to talk about with your advisor—or a prospective advisor—going into 2021.
Tax planning. 2020 was a perfect storm. How did your CPA firm handle it? First, there was the crazy tax season that never ended as the Internal Revenue Service extended deadlines, and April 15 became July 15. The March CARES Act pandemic legislation is still causing anxiety. There’s major uncertainty around forgiveness of PPP loans, how to use those funds, and whether expenses paid for with forgivable loans can be deducted. (The IRS says no, but bipartisan legislation might fix this). There’s complexity around a new payroll tax credit, new rules around net operating loss carrybacks, an expanded deduction for interest on business debt and more.
Now it’s time for year-end tax planning, and there’s a new president-elect and likely a divided Congress (with control of the Senate still to be determined in a January run-off in Georgia). What does that mean for tax policy?
Expertise. Look for a firm with a team with expertise in your industry. “You never want to be a dabbler,” says McCall. Beyond that niche, discuss what other services they offer outside of traditional tax and audit services. If your company operates across state lines, look for a strong state and local tax practice, for example.
Wealth planning. How does your firm help company owners? A high-net-worth practice is key for private company owners who could be impacted by tax decisions on the corporate side. Ask how advice is coordinated between the corporation and the owners.
Digital solutions. Is your firm a high tech user? High tech users could pivot pretty well into the remote work environment of the pandemic. That’s likely to be the way of the future. “This horrible situation has control-alt-deleted us about how we conduct our business,” Whitman says.
Top firms are investing in digital talent to bring new solutions to clients. That means mining financial accounting data to understand customer preferences and uncover opportunities, for example. Ask what’s happening with RPA (robotics process automation) bots that help accountants tackle mundane tasks. You could create a bot that will pull down bank statements, compare bank activity and put out an exception report. “You want a firm that’s focused on innovation so you know they’re going to help you think about it in your own business,” says McCall.
Succession planning. For many private company owners, the stress of operating during the pandemic has accelerated retirement plans. Is now the time to sell? To liquidate through a private equity firm? Ask if your CPA firm has a mergers and acquisitions practice and a strategic planning practice that can help with the decision making process.
Bottom line. Don’t skimp on tax and accounting advice. Given the uncertain times, it’s time for a check in with your advisor.