Have you been told that your biggest expense as a business owner is payroll? Many of us have. And while wages are undeniably a large line item, they’re not actually your biggest expense. In fact, it might surprise you to learn that the most significant drain on your profits is likely taxes.

Yes, taxes – the unavoidable cost of doing business. Federal income tax, state income tax, sales tax, property tax, fuel tax, and even estate tax if we look far enough ahead. Taxes touch every corner of your business, yet they’re often overlooked when it comes to cost reduction strategies. The good news? There are actionable steps you can take to minimize your tax liability and keep more of your hard-earned money.

As we head into 2025, now is the perfect time to evaluate your tax strategy. Here are three essential questions to ask your CPA or tax preparer to ensure they’re on your team, working to reduce your tax burden:

1. How often will we meet during the year? If you’re only connecting with your CPA during tax season, you’re likely leaving money on the table. A proactive tax strategy requires regular check-ins – at least quarterly – to ensure you’re on track and taking advantage of tax-saving opportunities. If your CPA isn’t driving these meetings, it might be time to find someone who will.
2. How much do you typically save clients in taxes each year? A CPA committed to tax strategy should have a clear answer to this question. Whether it’s saving 25-30% of annual taxes or more, they should be able to explain exactly how they achieve these results and back their strategies with IRS guidelines and case law.
3. Can you provide examples of tax strategies you’ve implemented? Your CPA should be able to share specific examples of strategies they’ve used to help other clients – from industry-specific deductions to wealth-building tax plans. This shows not only their expertise but their commitment to tailoring solutions for your unique situation.

If your current tax professional doesn’t measure up, you’re not alone. Many business owners unknowingly overpay on taxes, even when working with a CPA. The key is finding someone who specializes in tax reduction and has a proactive approach.

As tax laws continue to evolve in the coming year, it’s more important than ever to have the right professional by your side. If you’re ready to take control of your tax strategy and keep more money in your business, let’s talk. A quick, no-obligation call could be the first step toward a more profitable 2025.

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