Ask the CPA: Your Top 10 Accounting & Tax Questions Answered

Every year, individuals and business owners ask CPAs similar questions about taxes, accounting, and financial planning. To help you stay informed, we’ve compiled clear answers to the top 10 questions clients ask most often.

1. Do I need a CPA or can I file taxes myself?

A CPA provides expertise that reduces errors, maximizes deductions, and ensures compliance—especially for complex tax situations.

2. How can I lower my tax bill?

Strategic planning, deductions, credits, and retirement contributions can all reduce tax liability.

3. What records should I keep for tax purposes?

Income statements, receipts, expense logs, and prior returns should be kept for at least three years.

4. What triggers an IRS audit?

Red flags include mismatched income, unusually high deductions, and inconsistent reporting.

5. Should my business be an LLC, S-Corp, or C-Corp?

Each structure has tax advantages—your CPA can help you choose the best fit.

6. How often should I review my financial statements?

Monthly reviews help identify trends, risks, and opportunities.

7. What is the difference between cash and accrual accounting?

Cash records income when received; accrual records income when earned.

8. How can a CPA help my business grow?

CPAs provide forecasting, budgeting, tax strategy, and financial guidance.

9. What expenses are deductible for small businesses?

Typical deductions include office supplies, mileage, software, and professional fees.

10. What should I bring to a CPA meeting?

Bring financial records, tax forms, questions, and business documentation.

Conclusion

Understanding the answers to common accounting and tax questions empowers individuals and business owners to make informed financial decisions. Whether you’re evaluating deductions, selecting a business structure, or planning ahead for tax season, having access to expert insight makes all the difference. If you have additional questions or want guidance tailored to your specific needs, a trusted CPA can provide clarity and direction.