Questions to ask Your CPA at a Mid-Year Checkin

With much of the year already behind us, now is the perfect time to check in with your CPA or CFO team. Together we can see how your current financial status compares with projections set for the year.

Whatever challenges or successes you’ve met in 2023, our team at SME CPAs is ready to find the right response strategies for you.

What is a mid-year checkin?

Did you know your accountant still exists outside of tax season? We’re always here to help! In fact, midyear is the time to check in with your CPA or CFO team, reanalyze your present goals, and update any financial strategies not working for you.

Before end-of-the-year stress kicks in, let’s sit down to go over your current state of affairs.

This is your opportunity to review financial goals and benchmarks to ensure you’re on track to meet projections and that your tax strategies from January are still the appropriate strategies for your business as we close in on the end of the year.

Mid-Year Check in: Personal Finances

About half way through the year, individuals should meet with their CPA to discuss tax-minimizing financial strategies for the end of the year. If you’ve already spent a lot of itemizable deductions, purposefully exceeding the 2023 standard deduction could mean a lower tax bill.

You’ll also want to go over:

• Adjusting withholdings or estimated tax payments for major life changes.
• Converting your traditional IRA to a Roth to avoid tax rate increases.
• Gifting shares to charities or loved ones in the 0% bracket.
• Updating your estate plan to reflect any life or tax code updates.

Keeping Your Business Affairs On Track

Strategies change completely depending on your current financial situation and your future tax bracket. Business owners should consider accelerating or postponing income and deductions, depending on how the year has gone. If you expect to be in a lower tax bracket next year, deferring income and speeding up deductions is the way to go. If you’re headed toward a higher tax bracket, you’ll want to do the opposite. Sit down with your accountant to figure out which course is right for you.

Additionally, take time to consider: 

• Setting up a tax-advantaged employee retirement plan, if you haven’t. 
• Taking advantage of depreciation write-offs for certain assets — including vehicles and building renovations — for businesses in their first year. 
• Accessing the best qualified business income (QBI) deduction.
• Selling Qualified Small Business Corporation (QSBC) stock obtained after September 2010 and held for at least five years for a 100% federal income tax gain exclusion. 

Not sure where you stand? Your SME CPA can help.

Maybe you’re building on the momentum of a successful year. Maybe you need some help getting back on track. Whatever your situation is, get in touch with us. We’re here to support and guide you along the way and ensure you end 2023 on a high note.