What Your CPA Wishes You Knew Before Tax Season Starts

 

How often do you reach out to your accountant before tax season hits full swing? If the answer is “never,” you’re not alone, but you’re probably missing out on opportunities to save money, reduce stress, and avoid costly mistakes.

Accountants aren’t just number-crunchers you talk to once a year. They can be a valuable resource if you loop them in earlier. That’s exactly why there are a few things most CPAs wish more people understood before tax time rolls around.

Waiting Until January? You’re Already Late

A lot of people think they only need to worry about taxes after January 1st. Technically, that’s when filing starts, but smart prep starts much earlier. Decisions made in October, November, and December can have a direct impact on your tax bill.

For example, if you’re self-employed or run a small business, there are deductions you can only claim if you make certain purchases or payments before the end of the year. Miss that window, and you lose the opportunity.

Even if you’re a W-2 employee, things like charitable contributions, retirement contributions, or timing medical expenses could make a difference.

The earlier you start organizing and reviewing your finances, the more your CPA NYC will be able to help you spot these kinds of opportunities. And the fewer last-minute surprises you’ll run into.

Organization Matters More Than You Think

You don’t need a color-coded binder, but you do need to keep your documents and records in order. Here’s what CPAs consistently see that slows things down or causes issues:

• Missing receipts – Especially for charitable donations, business expenses, and medical costs.
• Unreported income – Forgetting to include side hustle income, rental income, or investment gains.
• Last-minute document hunts – Waiting until March to find a 1099 that arrived in January.

The better your records, the easier it is to prepare your return, and the less you’ll pay in prep fees. Accountants may charge more when they have to chase you for missing information or clean up disorganized records. A simple digital folder with labeled PDFs or scanned copies of key documents can go a long way.

Your CPA Isn’t a Mind Reader

You might assume your accountant knows everything about your financial situation. They don’t, unless you tell them.

Big life changes like getting married, buying a home, having a child, changing jobs, or starting a business can affect your taxes significantly. If your CPA doesn’t know about those changes, they can’t advise you properly.

Even small things matter. For example, did you start using a portion of your home as a workspace? Did you sell some stocks? These can shift your tax picture in ways you might not expect.

Keeping your CPA in the loop isn’t about oversharing; it’s about making sure they have the full picture so they can help you make the best decisions.

Refund Expectations Are Often Misunderstood

Many people treat their tax refund like a bonus. But if you’re getting a large refund, it’s actually a sign you overpaid throughout the year.

Your CPA probably won’t tell you to stop enjoying your refund, but they do wish you understood what it means. That money could have been in your paycheck all year, rather than sitting with the government interest-free.

Adjusting your withholdings isn’t complicated, but it does require a conversation. It’s worth doing, especially if your refund consistently feels bigger than expected. On the flip side, if you owe money every year, your CPA can help adjust your estimated payments or withholdings to avoid penalties.

Either way, it’s better to have that conversation well before tax season.

Extensions Don’t Mean What You Think

Filing an extension doesn’t give you more time to pay your taxes. It only gives you more time to file the paperwork. If you owe money and don’t pay by the deadline, you’ll likely face interest and penalties, even if you file later under an extension.

Many people misunderstand this and assume they’ve bought themselves time to figure things out financially. Unfortunately, the IRS doesn’t see it that way.

If you’re considering an extension, talk to your CPA about what you realistically owe. It’s often better to make an estimated payment upfront, even if your paperwork isn’t quite ready.

Guesswork Can Cost You

Trying to estimate your deductions or income without proper records might seem harmless. But your CPA doesn’t want to guess, and neither should you.

The IRS expects accuracy. And while a small math error isn’t the end of the world, repeated or glaring mistakes can flag your return for an audit. The last thing your CPA wants is to clean up a mess that could’ve been avoided with a bit more care.

That means:

• Don’t round numbers unless they truly are round
• Don’t guess on mileage or expenses
• Don’t assume something is deductible because it “seems” like it should be

Bring documentation and let your CPA help you figure it out from there.

Tax Planning Isn’t Just for the Rich

There’s a common belief that tax planning is only useful for wealthy people with complicated investments or business dealings. Not true.

Even if you have a relatively simple tax situation, there are likely things you can do during the year to reduce your tax burden. This might include:

• Making extra retirement contributions
• Timing charitable donations
• Taking advantage of credits for education or energy-efficient upgrades

These opportunities don’t always get discussed during tax prep season, and it’s often too late by then. But if you touch base with your CPA during the year, even just once, they can help spot these options and guide your decisions.

Give Them Time to Help You

Accountants are swamped from late January through April. If you wait until March to hand over your documents, you’re not going to get the best service. It’s not that they don’t want to help; it’s just that they’re dealing with dozens (if not hundreds) of other clients at the same time.

The earlier you reach out, the more time your CPA has to catch potential issues, find savings, and avoid filing under pressure. Everyone wins.

Don’t Leave Money (or Peace of Mind) on the Table

Your CPA isn’t just there to punch numbers into tax forms. They’re there to help you make smarter financial choices, avoid trouble, and maybe even lower your tax bill. But they can’t do that if they’re only brought in at the eleventh hour.

The best move you can make this year? Think ahead. Organize your records, check in sooner, and keep the lines of communication open.

Tax season doesn’t have to be stressful, especially if you stop treating it like a one-time event and start treating it like a year-round process.