Are You Being Ripped Off? The CPA Red Flags Costing Small Businesses Big Money – when it comes to taxes, most entrepreneurs are either flying blind or relying too heavily on someone who might not be doing enough to protect their money.
Let me ask you a tough question — Is your CPA proactively protecting your income or simply filing your taxes once a year? If you only speak to them during tax season, and they’ve never mentioned things like the Augusta Rule or how to pay your kids through your business, you could be leaving tens of thousands of dollars on the table.
In this post, we’re pulling back the curtain on one of the most costly yet overlooked aspects of entrepreneurship: bad CPA relationships.
This isn’t a CPA-bashing session. In fact, we love great CPAs — we partner with them all the time. But the truth is, most business owners don’t actually know if they have a good one. And that uncertainty could be bleeding your business dry.
We’re going to walk you through a practical 5-question framework called “Switch or Coach” — designed to help you evaluate your CPA, not emotionally, but strategically.
Why Most Entrepreneurs Overpay in Taxes
Most entrepreneurs are shocked to discover they’re overpaying the IRS every single year, simply because their CPA isn’t taking a proactive role in their tax strategy. You might be confident now, but confidence can be misplaced — and costly.
Let’s fix that today.
The 5 Key Questions to Audit Your CPA Relationship
1. Do You Meet With Your CPA More Than Once a Year?
If the answer is no, you’re already at a disadvantage.
Tax planning isn’t something that happens in March or April. It’s a year-round strategy.
Every decision you make — hiring, buying equipment, changing your business structure — affects your taxes. If your CPA is only checking in once a year, it’s already too late to make a meaningful impact.
✅ Pro Tip: Set up quarterly check-ins with your CPA to discuss planning strategies, not just paperwork.
2. Has Your CPA Suggested Any New Tax Saving Strategies in the Last 12 Months?
This one separates the historians from the strategists.
- A historian tells you what already happened.
- A strategist helps you influence what happens next.
The tax code is constantly evolving. If your CPA hasn’t brought up any new strategies in a year, it’s not because there’s nothing new. It’s because they’re not paying attention.
👉 Don’t miss out on deductions and credits simply because your CPA isn’t staying sharp.
3. Are They Using Advanced Strategies Like the Augusta Rule, Family Payroll, or Entity Optimization?
This is where the elite CPAs stand apart.
Here are three advanced tax strategies every entrepreneur should know:
- The Augusta Rule: Allows you to rent your home to your business for up to 14 days a year, tax-free.
- Family Payroll: Legally pay your children through your business, lowering your tax burden and funding their future.
- Entity Optimization: Structure your business in a way that minimizes self-employment tax and opens up additional deductions.
If your CPA isn’t familiar with these — that’s a red flag.
4. Do They Explain Things Clearly, Giving You Full Confidence?
Tax strategy shouldn’t feel like decoding ancient runes.
You are the CEO. You deserve to understand the decisions being made with your money.
If your CPA says, “you don’t need to worry about that,” or talks over your head, they’re gatekeeping — not empowering. A good CPA translates complexity into clarity.
5. Do You Feel 100% Confident That They’re Helping You Legally Pay the Least in Taxes?
This is the gut-check question.
Even if everything looks fine on paper, if you’ve got that nagging feeling that you’re paying too much — you probably are.
👉 Your intuition as a business owner matters. Don’t ignore it.
Understanding Your Results: Switch, Coach, or Keep?
After answering the five questions above, it’s time to decide what to do next. Here’s how to interpret your score:
✅ Keep – You Answered YES to Most or All Questions
Congrats! You’re in the top 10%.
You’ve got what we call an advisor-grade CPA — someone who proactively plans, strategizes, and partners with you throughout the year. But even great relationships need maintenance. Use an annual tool like the DID Claim IT checklist to stay aligned on deductions and deadlines.
📤 Share this article with your CPA to show appreciation and keep the momentum going.
⚠️ Coach – You Gave a Mix of Yes and No
Your CPA has potential but needs clear expectations.
Most CPAs are reactive, not proactive. But that can change. Use a conversation script to reset the relationship.
Example:
“I’d like to start having mid-year planning meetings and discuss how we can restructure my business to reduce Q4 estimated taxes.”
That simple conversation could unlock thousands in savings.
❌ Switch – You Answered NO or Unsure to Most Questions
It’s time to make a clean break.
You’re likely overpaying in taxes because your CPA is just filling out forms, not building your wealth.
Here’s what to do:
- Review your last 2 years of tax returns for missed deductions.
- Download our tax strategy guide (linked below).
- Book a free strategy call with a proactive advisor who thinks like a CFO, not a form filler.
Don’t Let Inaction Cost You Thousands
Most entrepreneurs were never taught how to audit their CPA — or even that they should. But now you know. And you have a clear, 5-question framework to take control.
Taxes are likely your biggest ongoing expense. Why wouldn’t you have a plan to reduce them?
Get the Book: Your Biggest Expense
If this post opened your eyes, you’ll love the book: Your Biggest Expense
It’s packed with real, legal, proactive tax-saving strategies you can apply immediately — even if you’re not a finance person.
Bonus: Buy through the official site and get access to exclusive tools, checklists, and bonus content.
Final Thoughts
Your CPA shouldn’t just file your taxes — they should be part of your financial defense team.
Use the five questions. Run the Switch or Coach framework. And don’t settle.
✅ If they’re great, keep them sharp.
⚠️ If they’re coachable, have the conversation.
❌ If they’re costing you money, make a switch.
You’ve worked too hard to give away your profits to poor planning.
Protect your income. Optimize your taxes. And build your business with confidence.
Want Help Reviewing Your CPA or Tax Plan?
📞 Book a Free Strategy Call: Speak with a tax strategist who acts like a CFO, not just a compliance officer.
📘 Grab the Book: Your Biggest Expense
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