How to tell if you’re getting strategy—or just compliance
The high cost of passive accounting
Most business owners assume their CPA is “handling everything.”
But for a lot of SMBs, the reality is far less reassuring: your accountant may be doing little more than preparing and submitting your tax forms.
And that’s a problem.
Because if they’re not planning ahead, you’re probably overpaying—missing out on deductions, credits, and smarter ways to structure your business.
Compliance vs. strategy
Not all accountants are created equal. Some focus on basic compliance. Others deliver true tax strategy.
Here’s the difference:
Compliance
- Filing your taxes accurately and on time
- Asking for documents after year-end
- Reporting what already happened
Strategy
- Talking with you before year-end
- Identifying ways to reduce taxes before you owe them
- Guiding business decisions that directly affect your tax bill
One files your return.
The other helps you win tax season.
Red flags
Wondering which one you’ve got? Look for these signs:
1. They never ask about your business goals
If your accountant doesn’t know whether you’re hiring, growing, or thinking about an exit… how could they build a plan around it?
2. You only hear from them once a year
By the time they reach out in March or April, it’s too late to make strategic moves. Tax planning happens in real time—not retroactively.
3. They never mention credits or elections
Do they bring up things like the Work Opportunity Tax Credit (WOTC)? Bonus depreciation? Entity restructuring? If not, they’re probably leaving money on the table.
4. You get a bill—not insight
A good tax advisor doesn’t just file and invoice. They explain why you owe what you owe—and how to reduce it next time.
What strategic support should look like
If you’re ready to upgrade from reactive to proactive, here’s what to expect from a true tax strategy partner.
Proactive touchpoints
- Regular check-ins—quarterly or at least semi-annually
- A year-end planning meeting
- Updates when the tax code changes
Integrated advice
- Collaborates with your bookkeeper, payroll provider, and financial planner
- Helps you connect the dots between your financials and your goals
Specific, actionable guidance
They talk to you about:
- WOTC
- Retirement plan tax deductions
- S-Corp elections
- Cash vs. accrual method
- Timing large purchases or capital investments
They don’t just tell you what happened. They help shape what could happen.
Don’t settle for less
Filing your taxes isn’t the same as planning them.
If your accountant isn’t helping you think ahead, you’re not getting strategy—you’re just getting a receipt.
You deserve more than a form-filer. You deserve a partner who helps you keep more of what you earn.
