Relationships: Communication is Critical
By Cory Porrino, CPA
July 26, 2012
One of the most important aspects in any relationship – personal or professional – is communication. For CPAs, the “offseason” is a great time for us to improve our communication skills and make us better communicators. Ingoing and outgoing communication is critical on a day-to-day basis, but planning ahead is also essential. Consider the importance of communication as it relates to upcoming tax law changes.
For CPAs in public accounting (especially those dealing with taxes), communication will be key over the next several months with the anticipated tax law changes. The election season is in full swing, and there are a lot of uncertainties in this area. Communication within your firm and with your clients over the next several months will be critical. You will need to effectively and efficiently explain potential changes to the tax laws within your firm so staff is prepared to pass this information on to clients for proper planning. You may not receive the outcome you desire if this information is not communicated in a timely way. Those who have the best communication skills will be able to disseminate the most relevant information once changes are known.
For CPAs in industry, communication also is critical. Your organization will be affected by tax law changes too. For example, new legislation could affect your effective tax rate. Whether you are a C corporation or a pass-through entity, changes to your effective tax rate can have an impact on your tax planning, budgets, cash flow projections, pricing models, and so on. By communicating these changes promptly, those charged with governance will be able to make decisions in a timely manner.
In times of change, we see how important it is to communicate effectively. Don’t be afraid to take the initiative to improve your communication skills. You will find it beneficial as it will make you better equipped to act in a timely manner and will help improve your personal and professional relationships.
Cory Porrino, CPA, is a senior accountant at ParenteBeard LLC.
LAST UPDATED 7/18/2012