Skip to main content
Services
Investment Strategy
Wealth Management
Tax Planning
Financial Planning x Tech
Learn
Insights
Videos
Case Studies
Benefits of combining CPA & CFP
Firm
Log in
Financial Plan Login
Investment Report Login
Schedule a call
Services
Services
Investment Strategy
Wealth Management
Tax Planning
Financial Planning x Tech
Learn
Learn
Insights
Videos
Case Studies
Benefits of combining CPA & CFP
FirmLog in
Log in
Financial Plan Login
Investment Report Login
Book a Call
© 2020 Brickley Wealth Management
The Power of Consistent CPA Communication.
Blog Post
by Nathan Brickley, CPA

The Importance of Communicating with your CPA

Tax Planning
Follow Us:
Notice: The content of this post is over two years old, information may not be up to date.

Communication is key when it comes to relationships—especially with your CPA. Effective communication with your Certified Public Accountant (CPA) is crucial for maintaining your financial health. Whether you’re an individual looking to manage personal finances or a business owner striving for financial stability and growth, staying in regular contact with your CPA can make a significant difference. Here are some specific examples illustrating why clear and consistent communication with your CPA is so important.

Preventing Tax Surprises and Penalties

‍Keeping your CPA informed about major financial events can prevent unexpected tax surprises and potential penalties. For example, if you sell your home, receive a large bonus, or have any other significant taxable event, your CPA needs to know. They can provide you with estimated tax payments to cover these events, helping you avoid underpayment penalties and ensuring you are prepared for tax time.

State Tax-Exempt Dividends

State tax-exempt dividends can be easily overlooked on a 1099 form. These dividends should not be subject to state taxes, but often they are, simply because a tax preparer is unaware of their tax-exempt status. Having a CPA who is familiar with your portfolio and underlying assets can ensure these dividends are flagged correctly, preventing unnecessary state taxes. Since we manage your portfolio, we have the familiarity needed to identify and correctly handle state tax-exempt dividends.

Qualified Charitable Distributions (QCDs) from IRAs

If you make a qualified charitable distribution (QCD) from your IRA, it’s important to inform your CPA. QCDs are not reflected on the 1099-R tax form, which only shows the total distribution. If your CPA is unaware of the QCD, you could be taxed on the full amount of the distribution, negating the tax benefits of the charitable contribution. By communicating this information, your CPA can accurately report the QCD, ensuring you receive the proper tax treatment.

Depth and Consistency in Financial Strategies

At Brickley Wealth, we offer combined CPA and financial advisory services under one roof. This integration allows us to communicate and execute strategies effectively and consistently behind the scenes. Financial advisors without in-house CPAs often cannot match this level of service, requiring you and your advisor to have frequent, detailed discussions with an external CPA. This disjointed approach can lead to higher taxes and a less comprehensive and optimal financial plan. Our integrated service model allows for seamless communication and coordination.

Maximizing Tax Deductions and Credits

By communicating regularly with your CPA,  you ensure that all potential tax deductions and credits are identified and utilized. For instance, if you’ve made energy-efficient improvements to your home or incurred significant medical expenses, your CPA can help you take advantage of available tax credits and deductions, reducing your overall tax liability.

Strategic Financial Planning

Your CPA can provide valuable insights into your financial planning. Regular discussions can help you align your financial goals with your current situation. Whether you’re planning for retirement, saving for your child’s education, or looking to grow your business, your CPA’s strategic advice can be helpful in achieving your objectives.

Handling Life Changes

Significant life changes such as marriage, divorce, the birth of a child, or a new job can have substantial financial implications. Keeping your CPA informed about these changes allows them to adjust your financial strategies accordingly.

Crisis Management

In times of financial crisis, whether due to economic downturns or other emergencies, your CPA can be a vital resource. Regular communication ensures that your CPA is up to date and can provide immediate, informed advice to help you navigate the crisis effectively.

Regular, clear, and open communication with your CPA leads to better financial management, more effective tax planning, and a stronger, more trusting relationship. Keeping the lines of communication open with your CPA can make all the difference between smooth sailing and unexpected surprises.

–––

Brickley Wealth Management is a Registered Investment Adviser*. Advisory services are only offered to clients or prospective clients where Brickley Wealth Management and its representatives are properly licensed or exempt from licensure. The information throughout this website is solely for informational purposes. The content is developed from sources believed to provide accurate information, and we conduct reasonable due diligence review however, the information contained throughout this website is subject to change without notice and is not free from error. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Readers should conduct their own review and exercise judgment prior to investing and should carefully consider their own investment objectives and not rely on any post, chart, graph or marketing piece to make a decision. No investment or tax advice may be rendered by Brickley Wealth Management or Brickley & Company unless a client service agreement is in place. We are not providing any personalized investment advice through this website. Please consult your investment, tax, or legal advisor for assistance regarding your individual situation. Brickley Wealth Management does not provide legal advice, and nothing in this website shall be construed as legal advice. For more information on our firm and our advisers, please see the latest Form ADV and Part 2 Brochures and our Client Relationship Summary https://adviserinfo.sec.gov/firm/summary/287487. For a copy of our Privacy Notice, please go here.

*Please note that the term "registered investment adviser" and description of our firm and/or our associates as "registered" does not imply a certain level of skill or training.

Three Brickley team members smile at the camera in their headshots, the headshots overlap in a decorative style.

Need help understanding your financial situation?

Our team is ready to help you plan for your financial future. If you’re ready to make a plan, we make it easy.
Book a call

Key Financial Terms 
Related to this Post:

This is some text inside of a div block.

Certified Public Accountant (CPA)

A licensed professional qualified to perform accounting, taxation.
This is some text inside of a div block.

Portfolio

A collection of financial assets. This can include stocks, bonds, mutual funds, exchange-traded funds (EFTs), real estate, and other types of investments.
This is some text inside of a div block.

Tax Credit

A dollar-for-dollar reduction of your tax liability. Can be refundable or nonrefundable.
This is some text inside of a div block.

Tax Deduction

An expense subtracted from taxable income, reducing the amount of income subject to tax.
This is some text inside of a div block.

Taxable Brokerage Account

An investment account subject to taxes on interest, dividends, and capital gains. No contribution limits.

Brickley Insights

Subscribe to practical insights on important wealth management topics.

Your submission has been received!
Oops! Something went wrong while submitting the form.
We respect your privacy.
Three Brickley team members smile at the camera in their headshots, the headshots overlap in a decorative style.

Ready to make a plan?
We make it easy.

Book a Call
contact@brickleywealth.com
(650) 638-0111
Follow Brickley Wealth on LinkedIn.Follow Brickley Wealth on Twitter.

Services

Wealth Management
Tax Planning
Investment Strategy
Financial Planning x Tech

Learn

Case studies
About Us
BLOG
Benefits of combining
CPA & CFP
Finance Definitions

Connect

Contact
Financial Plan Login
Investment Report Login
Charles Schwab

Brickley Insights

Subscribe to practical insights on important wealth management topics.

Your submission has been received!
Oops! Something went wrong while submitting the form.
We respect your privacy.
161 W 25th Ave, Suite #204, San Mateo, CA 94403
Contact@brickleywealth.com
(650) 638-0111

Brickley Wealth Management is a Registered Investment Adviser*. Advisory services are only offered to clients or prospective clients where Brickley Wealth Management and its representatives are properly licensed or exempt from licensure. The information throughout this website is solely for informational purposes. The content is developed from sources believed to provide accurate information, and we conduct reasonable due diligence review however, the information contained throughout this website is subject to change without notice and is not free from error. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Readers should conduct their own review and exercise judgment prior to investing and should carefully consider their own investment objectives and not rely on any post, chart, graph or marketing piece to make a decision. No investment or tax advice may be rendered by Brickley Wealth Management or Brickley & Company unless a client service agreement is in place. We are not providing any personalized investment advice through this website. Please consult your investment, tax, or legal advisor for assistance regarding your individual situation. Brickley Wealth Management does not provide legal advice, and nothing in this website shall be construed as legal advice. For more information on our firm and our advisers, please see the latest Form ADV and Part 2 Brochures and our Client Relationship Summary https://adviserinfo.sec.gov/firm/summary/287487. For a copy of our Privacy Notice, please go here.

*Please note that the term "registered investment adviser" and description of our firm and/or our associates as "registered" does not imply a certain level of skill or training.

2020 Brickley Wealth Management. All rights reserved.
Privacy Policy

Your Privacy is important to us

Customize your cookie preferences or click “Accept All” to agree to the storing of cookies on your device. View our Privacy Policy for more information.

Preferences
Accept
Deny
Privacy Preference Center

Below we list the different types of cookies that we use on the Site.  The specific cookies that we use, and the categories to which they belong, are available in the consent manager. To the extent any personal information is collected through cookies, our Privacy Policy applies and complements this Policy.

Always Allow Cookies
Close
Manage Consent Preferences
Required cookies enable you to navigate the Site and to use its services and features. Without these absolutely necessary cookies, we may not be able to provide the Site or certain services or features, and the Site will not perform as smoothly for you as we would like it to.

These cookies are used to deliver advertising that is more relevant to you and your interests. They may also be used to limit the number of times you see an advertisement and measure the effectiveness of advertising campaigns. Advertising networks usually place them with the website operator’s permission.

These cookies allow us to analyze your use of the Site to evaluate and improve our performance, for example, by providing us information about how our site is used.

Reject AllConfirm My Choices
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.