How to Pick a World-Class Tax Professional (or Rate Your Existing CPA)

This is Part 6 of the Financial Health Accelerator Series on “Money and Investing.”

In this private conference call, Garrett reveals the questions you can use when interviewing a CPA or Tax Professional to make sure you get world-class treatment.

How to Pick a World Class Tax Professional (or rate your existing CPA)

Audio: 23:54

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Why This is So Important…

You know the saying…

“The only two certainties in life are death and taxes.”

And it’s true. As long as you want to live in a society with the advantages it has, you’re going to be paying taxes the rest of your life.

And while you should always pay what you owe…

There’s no reason to “tip” the government.

Yet, that’s what most people do.

The Anatomy of Tax Reduction

You see, the government puts you in a tax bracket based on your income. Let’s say yours is the 25% bracket.

If you want, you can fill out your tax form and just pay that amount. Uncle Sam won’t care.

And if that’s all there was to it, the tax code manual could be about 10 pages long.

So what are the other 73,944 pages in the tax code all about?

These extra pages describe the deductions and credits you can take, including all the “do’s and don’ts” involved.

So while the tax code is long and onerous, it’s actually there to SAVE you tax.

Here’s the thing — out of all the financial things you have to keep on top of, taxes are probably the hardest area for YOU to personally be an expert at.

So…

Teamwork is Critical When it Comes to Saving on Taxes…

This is especially true if you are a business owner.

Because roughly 90% of the tax breaks listed in the IRS code only apply to businesses.

Side note: This is one reason we recommend W-2 employees have a side business at the bare minimum. There are also strategies to recharacterize some of your regular income as entrepreneurial income so you can take advantage of more tax-saving strategies. Talk to a competent tax professional or inquire here for more info.

So unless you enjoy plowing through dense pages of tax code legalese, the TEAM you put together to take care of your accounting and taxes is critical.

Why Is This Neglected So Often?

So why do so many people NOT have a good tax team?

These 3 reasons are the most common:

  1. People don’t like change
  2. Quality CPA and tax professionals are expensive
  3. They don’t know what to ask or how to find them

Let’s tackle these one at a time…

First, while it’s true that no one likes change, sometimes changing your accounting or tax team can be the best thing possible. Especially if you’ve outgrown them.

As Garrett talks about on the call, he held on to his first accountant far too long. They were college buddies, after all.

But once he got the nerve to break up with this CPA — his friend was actually relieved. He had known for a couple years already that Garrett had outgrown him, and now the pressure was off.

And Garrett’s new tax team was then able to amend his previous three years of returns and get him over $50k back:

Garrett's refund check

Garrett erroneously “tipped” the government when he didn’t have a good tax team working for him. After adding a world-class team and amending his past returns, he got these checks back.

So as far as a good tax professional being too expensive?

Well, if you have a great, world-class team, it’s actually…

A “Productive” Expense

You see, Garrett didn’t pay his new CPA and tax attorney anything close to $50k — so his return on that “investment” was an initial 10X payoff.

And the yearly savings after that have been phenomenal — mainly because he and his CPA meet proactively 4 times a year to discuss tax strategies.

This is an insight most high net worth individuals learn at one time or another:

A great CPA or tax team never costs you money, it always saves you money.

That’s why people like Robert Kiyosaki always say that hiring a great CPA is the best investment they’ve ever made, and gives them their highest return, dollar-for-dollar.

So what if you aren’t a high net worth earner? Well — then you may have to be more proactive. Study up on tax strategies that you might be able to use. Take them to your accountant or tax preparer. If they aren’t familiar with a strategy, try to help them raise their game. And if they refuse to help, then it’s time to move on.

And here’s the really great thing…

A World-Class CPA Doesn’t Have to Be Super Expensive…

It’s really more about what their philosophy of money is. And how they approach accounting and taxes.

So the real key to finding and hiring a world-class CPA, accountant or tax professional is about asking the right questions.

You already know that the person asking questions is always in charge.

That’s the position YOU want to be in.

Remember — you are the boss. It’s YOUR money. Your CPA is simply an advisor serving you.

So when you ask the right questions and know the correct answers to listen for…

Hiring a world-class CPA becomes much easier.

Here are the Questions to Ask…

On the conference call, Garrett gives you 5 important questions to ask your existing CPA or tax professional… or to use if you are looking to add one to your team.

In our on-site Wealth Acceleration Workshops, we give you over a dozen questions to ask — but in this free call, he just touches on 5 of these questions.

Using them will help give you a really good head start in building out a world-class accounting and tax team.

We’ve included brief answers, but Garrett gives much more depth on the conference call, so be sure to listen:

  1. Are you conservative and what does that mean?
    Beware of accountants who use “conservative” to hide the fact they aren’t saving you as much as they could. (Full answer at 11:34)
  2. How often do you recommend we meet?
    Once a year at tax time doesn’t cut it. (Full answer at 12:56)
  3. When does it make sense to pay more in tax?
    This one’s kind of tricky, but always look for a production-centric accountant, not a reduction-centric one. (Full answer at 13:37)
  4. What is the greatest tax shelter?
    Beware of anyone who recommends a profit-sharing plan, a defined benefit plan, or any sketchy tax schemes or off-shore accounts. (Full answer at 15:19)
  5. How do you feel about deferring tax and how and if does it make sense to defer taxes?
    Garrett explains three compelling reasons to NOT defer taxes. (Full answer at 17:01)

The full answers he gives to these questions can help you totally transform your tax team, keep more of the money you make, and start building wealth the way the ultra-rich have always done it.

More importantly, you’ll discover the liberating feeling of knowing you have a world-class financial team supporting you and watching your back (Garrett’s been audited twice and has a net GAIN of $2k from those audits, all because his tax team handled everything).

Access to Garrett’s Own Tax Team

Reducing your tax liability can be one of the quickest and easiest ways to instantly inject new cash flow into their lives.

That’s why it’s one of the first things we handle when helping our clients with their personalized Financial Blueprint in our high-level FastTrack program.

The next step is to get them plugged into our own word class network of financial professionals — the same team that personally handles Garrett’s finances.

And the full team isn’t just for taxes. It includes a comprehensive financial team that works together on your behalf covering every aspect of your financial life, from asset protection to insurance optimization to estate planning to cash flow optimization… and even includes a Registered Investment Advisor.

If that sounds like something you’d be interested in…

Click here to see if our Wealth Team or our private, 1-on-1 custom financial services is right for you

Other Calls in This Series…

Here are the other conference calls in this continuing series:

  1. The Winning Framework for Long-term Investing
  2. How to Reduce Risk, Avoid Losses, and Boost Returns by Tapping into Your Own Investor DNA
  3. Maximize Your Investment Performance by Focusing on Cash Flow
  4. Live Wealthy NOW Without Jeopardizing Your Future Security & Prosperity
  5. How to Fund Your Kid’s College… Without Breaking the Bank
  6. The 5 Critical Questions to Ask Before You Ever Work With a Financial Advisor

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