Tax Preparer or Financial Advisor: What Does Your Family Really Need?

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Most families assume they just need someone to prepare their taxes each year.

But if you’re only working with a tax preparer, you may be missing the financial guidance that could transform your family’s future and build lasting security.

What’s the difference between a tax preparer and a financial advisor?
A tax preparer focuses on one task: filing your annual tax return based on what already happened last year. They gather documents, complete forms and submit them to the IRS. It’s transactional work that happens once a year.

A financial advisor takes a broader view of your entire financial picture. They can help you plan for college expenses, structure retirement savings, coordinate estate planning and make strategic decisions throughout the year.

Does my family really need more than tax preparation?
If you only care about filing on time, a basic preparer might suffice. But if you want to build stability, save for education, plan for retirement or make smarter money decisions, you need ongoing guidance.

Family advisory services at Magone & Company deliver both — comprehensive tax prep plus strategic planning for every life stage. From budgeting and bill payment to investment strategy and estate planning, you get everything in one trusted relationship.

What does family financial advisory work include?
It varies based on your needs and life stage. For young families, it might mean college savings plans and realistic budgets. For established families, it may consist of retirement planning and wealth preservation. But for all families, family financial advisory work is having someone to call when making major financial decisions.

Services can range from paying household employees and managing bills to coordinating estate planning and charitable giving strategies. The goal is to give you confidence in your financial decisions and help building long-term security.

What if it’s just me, not a family?
The same overall advisory services apply to help reduce your tax burden and preserve wealth. There are also considerations like career financials — like how to handle stock options, a signing or relocation bonus, or deferring compensation to minimize your tax exposure.

A good CPA is looking at your situation proactively, so you’re not stuck with a surprise tax bill after the fact.

How do I know if my current tax preparer is advising me?
Ask yourself: Does my CPA reach out during the year with questions or ideas? Do they know my financial goals and family situation? Am I comfortable calling them when considering a major purchase or career change?

If your accountant only contacts you during tax season, you’re not getting advisory services. A true advisor maintains an ongoing dialogue with your family, understands your goals and provides guidance when you need it, not just when the IRS requires paperwork.

Is financial advisory service only for wealthy families?
Absolutely not. While ultra-wealthy families often have full-time “family offices,” that support should be accessible to all families building financial security.

At Magone & Company, we structure our family advisory services to match your specific needs and life stage. Whether you’re starting out or approaching retirement, ongoing guidance helps you make smarter decisions and avoid costly mistakes.

Are Magone & Company’s family advisory services right for you?
Every family needs tax preparation. But if you want to build wealth, plan for life events and make confident financial decisions, you need an advisor. Reach out for a complimentary assessment at (973) 301-2300.

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance specific to your unique circumstances.

Three Conversations to Have with Your CPA (That Aren’t About Taxes)

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Most business owners only talk to their CPA between February and April. While it’s a no-brainer to communicate during tax season, the real value comes from the conversations you have the other nine months of the year.

In fact, we meet with every business client at least quarterly.

What do we talk about?

From tax planning and compliance to adjusting projections due to changing economic conditions, there are many scenarios that warrant extra face time with your CPA.

Here are three conversations that can help move your business forward.

What are my numbers telling me about my business?

Dig into which products or services are profitable — not just generating revenue. For example, understanding how quickly you turn sales into actual cash reveals critical insights about your operations, and knowing the difference between profit and cash flow can transform how you run your business.

Questions to address with your CPA:

  • What patterns do you see in my numbers?
  • Where am I leaving money on the table?
  • Are there any red flags in my financial trends I should address now?

It’s easy to misinterpret a P&L, for example, if you’re not clear on accrual vs. cash basis and not realizing that some of your “income” hasn’t been collected yet. 

What happens when I want to grow?

If you’re looking for financing, you need to plan ahead. Your CPA can explain what lenders and investors expect to see in your financial statements and whether your current business structure supports or limits your expansion goals. Different growth strategies carry different tax consequences, and deciding between bringing on partners vs. taking out loans has long-term implications for your business.

What to ask:

  • If I wanted a $500K line of credit next year, what needs to change in my books?
  • What specific numbers in my financials do lenders focus on, and where do I stand?
  • When expanding, what’s the tax difference between hiring W-2 employees vs. contractors?

With growth comes compliance issues, so be careful you’re clear on employment laws, especially if you employ remote workers outside your geographic area.

How can I get to where I want to be in three to five years?

Exit planning starts way before you’re ready to sell. Many effective tax strategies require years to implement properly, and your CPA can help ensure you’re building wealth both inside the business and in your personal finances.

Talk to your CPA about: 

  • What steps should I take now to maximize my business’s value at exit?
  • What would a buyer want to see in my financials?
  • How do I start pulling money out of the business tax-efficiently?

It’s never too soon to start planning for a profitable exit.

Making conversations count

If you’re not touching on these topics when meeting with your CPA (or worse, not meeting at all), you’re missing out on an informed perspective to help move your business forward.

At Magone & Company, we provide year-round support and solutions to help your business grow. Touch base with us if you’re interested in a partnership structured to create value, build wealth and foster a long-lasting relationship.

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance specific to your unique circumstances.

5 Signs Your Business has Outgrown Your Tax-only Accountant

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The accountant who got your business through the startup phase isn’t always the one who gets you to $5 million — or $10M or $20M.

As your business grows, the inflection point usually comes when you need financing, are seeking proactive tax mitigation strategies or need to reward key employees to help retain critical talent.

This is when the gap between basic tax prep and true financial advisory can mean the difference between making informed decisions and expensive mistakes. If your CPA’s involvement hasn’t changed since year one, you may have outgrown the relationship.

Here’s how to tell:

1. They only reach out when they need something for your tax return.

You hear from them during tax season, but there’s no ongoing dialogue about tax planning or your business goals throughout the rest of the year. An advisory relationship should include regular touchpoints aligned with your business cycle and discussions about how today’s financial decisions impact tomorrow’s tax position.

What advisory looks like at Magone & Company: Quarterly check-ins, year-round tax planning and strategic conversations — not just April deadlines.

2. They give you historical data, not forward-looking insights.

Your profit and loss statement arrives with no context or interpretation. There’s no benchmarking against industry standards, no guidance on what to watch for next, and no proactive analysis to identify opportunities.

Here’s an example: We worked with a client on their business and personal returns. This client had previously been with a traditional tax-prep-only firm for the past three years.

With our deep knowledge of state tax laws, we were able to take advantage of that state’s law to exclude income in the state. This resulted in a tax savings of approximately $600,000.

That’s the distinction between an accountant and an advisor. Our advisory approach explains why your business margins are shifting, flags issues before they become problems and identifies which metrics deserve your attention.

What advisory looks like at Magone & Company: We’ll suggest proactive tax mitigation strategies, identify trends in your industry and offer data-informed insights to get ahead of whatever’s next in your business.

2. You’re asking strategic questions, and they’re giving you compliance answers.

When you bring major decisions to your accountant — like hiring employees versus contractors, or buying versus leasing a building — you get technical tax answers instead of strategic guidance. They’ll tell you both options are compliant but won’t help you evaluate which choice is better for your cash flow, growth trajectory or long-term goals.

What advisory looks like at Magone & Company: Actual analysis of your specific situation with scenario planning and concrete recommendations.

3. They have no experience with your next stage.

As you prepare for an acquisition or expansion, you need an accountant who’s guided other clients through these transitions. If your CPA hasn’t helped a business secure financing, navigate due diligence or structure equity arrangements, they can’t speak the language that banks and investors expect or anticipate the challenges.

What advisory looks like at Magone & Company: We’ve walked many clients through these scenarios, and we’ll make sure you know what to expect.

4. Your business is making decisions without their financial input.

You’re setting prices based on gut feelings. You’re hiring reactively because you’re overwhelmed. You’re making large purchases or considering expansion without cash flow projections. And your accountant hasn’t provided any input.

What advisory looks like at Magone & Company: Together, we’ll sift through relevant data and develop a plan based on informed insights, not guesses

Level up your CPA

If any of these signs resonate, take the time to evaluate whether your accounting relationship can really support your business as it grows.

  • Is your accountant proactively suggesting tax strategies, or only responding when you ask?
  • Do they understand your goals for the business, not just this year’s revenue target, but your three-to-five-year plan?
  • Do they understand your business model, your margins and what drives profitability in your industry?
  • Can they suggest operational improvements to improve productivity or reduce risk?

The advisors at Magone & Company can offer your business the guidance and support it needs for long-term success. To learn more, give us a call today at (973) 301-2300.

 

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance specific to your unique circumstances

 

 

 

IRS Shifts to Electronic Payments: What Taxpayers Need to Know

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Your tax refund check isn’t coming in the mail anymore. The IRS just announced it’s going all-electronic for refunds and payments.

Here’s what you need to know:

What happens if you don’t provide direct deposit information?

If you file your return without banking information, the IRS will still accept and process it, but your refund timeline changes. You’ll receive a mailed notice requesting direct deposit details within 30 days. If you don’t respond, the IRS will eventually issue a paper check, but only after a significant delay.

What about payments to the IRS?

While the IRS strongly encourages electronic payment methods for taxes owed, paper checks and money orders remain acceptable for now. Electronic options include IRS Direct Pay, debit/credit cards, digital wallets and your IRS Online Account.

Is the same happening for businesses?

The transition is rolling out more gradually. The IRS is adding direct deposit options to most business tax return types. Please note that Federal Tax Deposits must already be made electronically, and failure to deposit electronically may result in penalties unless you can establish reasonable cause.

Staying a step ahead of change

Remember, this change doesn’t impact how you file your tax return. To avoid delays, ensure your direct deposit information is current when filing. Monitor IRS.gov for updates, and don’t hesitate to reach out to the tax professionals at Magone & Company with any questions.

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance that is specific to your unique circumstances.

Love and Money: Must-have Financial Conversations for Engaged Couples

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Spring weddings are in full bloom, and May is one of the most popular months to tie the knot. For engaged couples, the to-do list seems endless. But between choosing flowers and finalizing a menu, there’s one critical conversation that many future grooms and brides-to-be avoid: Money.

Talking about finances early on can set the foundation for a strong financial partnership — or tear relationships apart down the road. Nobody wants to discover their partner’s child support obligations while doing their first joint tax return.

Now’s your chance to put it all on the table. Here are essential money questions every couple should be asking before walking down the aisle:

Are you a spender or a saver?

Maybe you grew up clipping coupons while your partner’s family never thought twice about splurging. How do you expect to handle this as a couple? Talk openly about your spending philosophies, budgeting styles and what financial security means to each of you, so can understand and respect each other’s point of view.

How will you tackle debt?

Recent data reveals that 54% of people believe a partner with debt may be a reason for divorce.

Whether it’s car payments, outstanding credit cards or medical bills, share what you each owe and create a realistic repayment strategy. Will you pay down debt before buying a house? Balance debt repayment with saving? Also think about how you can avoid accumulating more debt as a couple.

How will you split the bills?

Every couple needs a clear path for covering shared expenses. Some couples split everything 50/50 while others contribute based on their income. One partner may shoulder the mortgage while the other pays all the miscellaneous household expenses. The key is finding an arrangement that feels fair to both of you.

Who will handle which financial responsibilities?

Even if you merge finances completely, someone has to pay the bills, manage investments and file taxes. Decide together who handles which tasks, and how you’ll both stay informed about your overall financial picture.

Will you choose joint accounts, separate accounts or somewhere in between?

Some couples prefer fully merged finances. Others like separate accounts to retain financial independence. And many choose a hybrid. A Bankrate survey found that 62% of couples keep at least some money separate from each other. Consider your comfort levels and what makes the most sense for your marriage.

What are your retirement goals?

Do you both want to retire at the same age? How much are you saving, and is it enough? If you’re still in your 20s and 30s, the power of compound interest is on your side. But every year you delay saving could cost you tens of thousands of dollars by age 65. Review employer 401(k) matches and IRAs, and make sure you’re both contributing to a shared future.

Have you addressed wills, beneficiaries and powers of attorney?

Marriage changes your legal status, and your estate planning documents need to reflect that. These documents ensure that if something happens to one of you, the other isn’t left fighting legal battles during a difficult time. Create or update your wills, beneficiary designations and life insurance policies, and establish powers of attorney so you can make medical and financial decisions for each other if needed.

Start your marriage on solid financial ground

As you plan a future together, make room for these financial discussions. The experts at Magone & Company can help. Call us today at (973) 301-2300 to help address your financial concerns with confidence before saying “I do.”

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance specific to your business situation.

 

More Money, Same Problems: Understanding Lifestyle Inflation

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It’s the beginning of a new year, and maybe you landed a promotion with a generous raise. But before you start browsing new house listings or book a dream vacation for your entire family, here’s an uncomfortable truth we see at Magone & Company every day: Most people who get big pay bumps end up no better off financially a year later.

And this has a lot to do with lifestyle inflation.

Lifestyle inflation is when spending habits rise right along with your income, preventing you from building the wealth you thought that raise would bring.

With discussions around the One Big Beautiful Bill impacting tax policy and take-home pay, responding strategically to changes in your income has never been more critical. What you do with that extra money determines your financial future.

Here’s what we recommend:

First, cover the essentials. Before considering any big upgrades, make sure your priorities are handled. For example, build a fully funded emergency cash reserve to cover three to six months of expenses.

Maximize your retirement contributions to take advantage of compound growth, and take steps to eliminate high-interest debt that’s costing you every month.

Lock in savings. Treat raises like they don’t exist! As your paychecks grow, redirect a portion of each one to a savings account, retirement contributions or debt payoff.

So even as you spend some of your new income, you’re still protecting your building and protecting your financial future.

Set percentage-based goals. Commit to saving a consistent percentage rather than a fixed dollar amount.

For example, if you saved 15% when earning $80,000, keep saving 15% when you earn $100,000. This ensures your wealth building scales with your income.

Maintain visibility. Track your spending using apps or spreadsheets. Small expenses like extra subscriptions that you don’t use, or frequent coffee runs can accumulate quickly. But monthly reviews can help identify these patterns.

Implement a waiting period. Wait on the extravagant purchases. You may want to impose a three-to-six-month cooling-off period or even holding off an entire year. If you still need or want the upgrade after that allotted time, plan and set a budget rather than making an impulse decision.

Calculate the real cost of upgrades. So you’ve waited, and now you want to pull the trigger on financing a new car. But first, take the monthly cost and multiply it out.

A $300 monthly car payment increase costs $3,600 annually. Over five years, that’s $18,000. Seeing the true cost may help you figure out if the upgrade is really worth it.

Focus on experiences over possessions. A weekend trip with family or going back to school to learn a new skill may bring you more joy than another tech gadget or wardrobe makeover.

Experiences create lasting memories, connections and personal growth while the excitement of new purchases can fade quickly.

Make it count

Financial success requires balance. As your income grows, you can improve your quality of life, but not at the expense of your financial foundation.

Your next raise is an opportunity to make smarter financial decisions. Don’t hesitate to reach out to the Magone & Company team with any questions about your long-term financial health strategy.

 

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance specific to your business situation.