When hiring a new accountant most small business owners separate business and personal matters. Yet maintaining two sets of advisors often means double the records to track, extra data to transfer, and parallel discussions about the very same financial goals. Having your business accountant handle your personal taxes too has clear benefits and measurable advantages. A single accountant not only knows your bookkeeping history but is positioned to strategize for the year ahead without gaps or guesswork.
Your corporation vs. individual tax liability
A single advisor can view the whole picture: business income, personal income, owner’s salary, and the exact taxes paid or still owed. Both your corporation and you personally have tax liabilities. While your business may owe payroll tax, income tax or franchise tax, personally, you’ll owe tax on wages, dividends and pass-through income. An experienced CPA can determine where deductions have the greatest impact and how to structure compensation. They can also decide when to shift income, reducing the overall tax burden rather than simply shifting liability.
That context helps determine whether taking more wages, dividends or reimbursed expenses lowers the combined bill, especially for an S-Corp that passes profits through to shareholders. By analyzing both sides together, your CPA can time deductions, credits, and pension contributions to legally reduce tax across all entities. This approach simplifies the tax process instead of treating each return in isolation.
They can also model how changes to your salary structure or year‑end bonuses affect both returns. For example, an owner of an S‑Corp might choose to leave earnings in the company versus taking a distribution. Leaving funds in the business can help with cash flow, reduce personal taxable income and signal financial stability to lenders. On the other hand, taking a distribution may be needed for large purchases, debt or household tax planning.
Easier (and more efficient) for everybody
Having two accountants who are reliant on each other for numbers inevitably slows year‑end close. With one CPA that handles both your business and individual taxes, you only have to answer questions and upload documents once. Plus, adjustments like owner compensation or pass-through income flow automatically into your Form 1040 without delay.
Many California CPA firms offer bundled engagement letters that save fees and cut compliance risk. So, are you ready to streamline? At GYL CPA, we provide year-round, comprehensive advice and support—not just during tax season. Our team offers a full range of accounting, auditing, business advisory and tax services, with the expertise and resources to manage every aspect of your accounting and business needs. Contact us to explore whether consolidating services makes sense for your tax situation and the year ahead.