Proactive Tax Planning and CPA Advisory for Business Owners

Frequently Asked Questions

What is a virtual CPA firm, and how is it different from a traditional CPA?

A virtual CPA firm provides full CPA services online, using secure technology instead of in-person office visits. In practice, this includes tax planning, tax preparation, bookkeeping, payroll, and advisory services delivered through secure client portals and video meetings rather than in-person office visits. For most business owners, working with a virtual CPA is faster and more efficient. Documents are shared digitally, meetings are easier to schedule, and communication tends to be more proactive. At Madsen and Company, our virtual-first model allows us to respond quickly, collaborate year-round, and focus on strategy rather than paperwork — without sacrificing accuracy, compliance, or personal attention.

Who is Madsen and Company a good fit for?

Madsen and Company is a strong fit for small business owners who want more than basic tax filing. We typically work best with:

• S-corporation owners
• Contractors and service-based businesses
• Real estate investors and real estate professionals
• Growing businesses that want proactive tax guidance

If you are looking for year-round planning, clear explanations, and a CPA who actively helps you reduce taxes and avoid surprises, our firm is likely a good match.

If you are only looking for the lowest-cost, once-a-year tax filing with no planning or advisory support, we may not be the right fit.

What’s the difference between tax preparation and proactive tax planning?

Tax preparation reports past activity, while proactive tax planning focuses on reducing future taxes before the year ends.

Tax preparation is backward-looking — it reports what already happened so you can file an accurate return. Proactive tax planning is forward-looking — it helps you legally reduce taxes before the year ends by adjusting strategy, timing, and structure.

Many business owners only meet with their CPA once a year, which often results in missed deductions and preventable tax bills. At Madsen and Company, we focus on planning throughout the year so decisions are made in advance, not after it’s too late.

Most CPAs stop at compliance. We focus on strategy and timing.

How often should I meet with my CPA for tax planning?

Most business owners should meet with their CPA at least three times per year to plan effectively and avoid surprises.

This allows time to adjust strategy, manage cash flow, and respond to tax law changes — without regular planning, decisions are often made too late to change the outcome.

For S-corporation owners, real estate investors, contractors, and fast-growing businesses, quarterly planning meetings are often ideal. Meeting only once a year frequently leads to missed opportunities and unexpected tax balances.

Do you help S-corporation owners determine a reasonable salary?

Yes. Determining a reasonable salary is one of the most important — and most scrutinized — requirements for S-corporation owners.

We help calculate a defensible salary based on your role, industry data, business profitability, and IRS guidelines. We also revisit the analysis as your business grows. An improperly set salary is one of the most common IRS audit triggers for S-corporations, which is why this calculation should be intentional and well documented.

Can you help lower my quarterly estimated tax payments?

Often, yes. Many business owners either overpay estimates or pay them without a clear strategy. We analyze your income sources, deductions, entity structure, and cash flow to align estimated payments more accurately.

When done correctly, this can reduce unnecessary cash outflows during the year while still staying fully compliant with IRS requirements. This is achieved through planning — not by underpaying or ignoring tax rules.

I’m a real estate investor — can you help with depreciation and tax strategies?

Absolutely. Real estate tax strategy is one of our core specialties. We assist investors with:

• Accelerated and bonus depreciation
• Cost segregation analysis
• Passive vs. non-passive activity classification
• Entity structuring for rentals, short-term rentals, and flips

Do you work with clients outside of Utah?

Yes. Because our firm is virtual-first, we work with clients across all 50 states. Federal tax planning rules apply nationwide, and we account for state-specific rules as needed.

Most of our clients are located in Utah and the Mountain West, but location is not a limitation as long as you file U.S. tax returns or own a U.S. business.

How do I get started with Madsen and Company?

Getting started is simple:

1. Introductory Call - We learn about your business, goals, and current tax situation.
2. Scope & Fit Review - We confirm services, expectations, and next steps.
3. Engagement & Onboarding - You receive an engagement letter and secure portal access so we can begin.