A contractor last week told me they’d just heard from their CPA – who notified them that they had a tax bill due the next day for $8 – 10,000. It was a surprise – the explanation was that the CPA had either gotten behind on her work or just plain forgot about the tax.
I wasn’t privy to all the details, but the CPA worked for the company on a retainer. Gang, don’t do that. Pay your CPA for work they do as they do it. It has been my experience, having talked with many contractors who’ve hired professionals on a monthly retainer basis, that once the retainer starts the quality of the service goes down and the price of the work creeps up. Also, with most businesses, you’ll only need a CPA to compile tax info at the end of the year. A competent bookkeeper can handle everything throughout the year.
Paying taxes is part of the price tag for being in business, and having it done correctly is mandatory. What would happen if you “forgot” to make space for the stove or the refrigerator in a new kitchen you designed? Or if you “forgot” to install windows in a new addition? Pay your CPA for the work they do and hold their feet to the fire to be sure you get good results.