Why Keeping Your Tax Advisor in the Loop All Year Long Can Save You Money and Headaches
At Friedman + Huey Associates, we’ve seen it time and time again: a client makes a major financial move—selling a property, exercising stock options, launching a new venture—only to loop us in after the fact when the tax implications are already baked in. By then, our options are limited. The best tax planning isn’t reactive, it’s proactive, and that begins with regular communication.
That’s why we strongly encourage quarterly check-ins with your tax advisor—not just during tax season. These conversations can make a significant difference in managing your tax liabilities, avoiding costly surprises, and helping you make smarter financial decisions throughout the year.
The Case for Year-Round Communication
Your tax situation isn’t static. It evolves with your life and business decisions. Here are just a few examples of life events and financial moves that can impact your tax situation:
- Selling or buying a home or investment property
- Making large charitable contributions
- Changing jobs or compensation structures
- Starting or winding down a business
- Receiving an inheritance
- Taking distributions from retirement accounts
- Gifting money to family members
- Receiving restricted stock units (RSUs) or stock options
- Relocating to a different state
- Selling a business or partnership interest
Some of these events are obvious triggers for a call to your tax advisor. But others may seem innocuous at first—and yet carry significant tax implications. That’s why ongoing communication is key.
Quarterly Meetings: A Simple but Powerful Strategy
Regular quarterly meetings with your tax advisor help:
- Ensure timely tax-saving actions.
- Identify income and expense trends.
- Stay updated on evolving tax laws.
- Provide essential support for business owners.
What to Share With Your Tax Advisor
If you’re unsure what counts as “worth mentioning”, here’s a simple guideline: When in doubt, bring it up.
Personal Financial Updates:
- Major purchases or sales (real estate, vehicles, art, collectibles)
- Plans to move or change state residency
- Changes to marital status or family structure
- Gifts to family members or trusts
- Large one-time payments (inheritance, legal settlements, lottery winnings)
- New investments or withdrawals from retirement accounts
- Education expenses or 529 plan contributions
Business or Self-Employment Updates:
- Change in business structure (LLC to S-corp, for example)
- Purchase or sale of a business
- Significant revenue changes
- Adding or removing partners or shareholders
- Big equipment or capital expenditures
- Hiring employees vs. using contractors
- Fringe benefits or compensation changes
- Business travel, home office usage, or other deductions
Investment or Wealth Planning Moves:
- Selling stocks or crypto assets
- Exercising stock options or RSUs
- Investing in real estate or private equity
- Estate planning decisions
- Donor-advised fund contributions
- Roth conversions
Benefits of Proactive Tax Planning
Keeping us informed throughout the year lets us tailor a tax plan that works for you, not against you:
- Minimizing Taxes
- Avoiding Penalties
- Cash Flow Planning
- Maximizing Tax Credits
- Strategic Decision-Making
Avoiding the “April Surprise”
One of the worst feelings as a taxpayer is finding out you owe a big tax bill in April—and had no idea it was coming.
These surprises are avoidable. But only if we’re in the loop early and often.
Final Thoughts
Tax planning isn’t a one-time event. It’s a year-round process that requires collaboration and communication. By engaging with us proactively—especially through quarterly meetings—you give yourself the best chance to reduce your tax liability, share your goals, have your questions answered, stay compliant, and make smarter financial decisions.
So if you’re wondering whether something is worth a quick check-in, the answer is almost always yes. We’re here to help—and the sooner we talk, the more we can do.
Let’s stay in touch.
