How Your CPA Drives Value for Your IT Company

By Dr. Aaron Mahl, EVP Business Development, iTValuations

Running a successful IT company involves more than just technical expertise—it requires financial strategy, tax planning, and a clear vision for growth. In a recent iTValuations webinar, industry experts came together to discuss how CPAs can be more than just tax preparers—they can be strategic partners in driving business value. Aaron Mahl, Executive Vice President at iTValuations, hosted an engaging discussion with Greg Northrop, Director of Tax and Finance at iTValuations and Managing Partner at IT Tax Advisors, and Randy Crockett, CFO and Partner at Snap Tech IT. Their insights shed light on how IT business owners can maximize value, ensure financial health, and prepare for future growth.

Key Takeaways from the Webinar:

1. The Role of a Strategic CPA in IT Companies

Many IT business owners start with CPAs who handle compliance and tax filing, but as their companies grow, they require strategic financial guidance. Randy Crockett shared his experience transitioning from a traditional CPA to IT Tax Advisors, emphasizing the need for forward-thinking financial strategies that align with business objectives.

2. Common Mistakes IT Companies Make with Tax Planning

Greg Northrop highlighted some frequent tax planning errors, including:

• Misclassification of expenses – Ensuring costs are properly categorized to optimize tax benefits.
• Failure to leverage tax credits – Many IT firms qualify for deductions like Section 199A (Qualified Business Income Deduction) but fail to claim them correctly.
• State tax compliance issues – Expanding MSPs often operate in multiple states without proper tax filings, leading to unexpected liabilities.

3. The Importance of Clean Financials for Business Growth

Whether preparing for a merger, securing funding, or scaling operations, clean financial statements are crucial. Both Crockett and Northrop emphasized that organized, well-structured financial records instill confidence in investors, lenders, and potential buyers.

4. Planning for Acquisitions and Exit Strategies

As MSPs grow, acquisitions become a natural path for expansion. Snap Tech IT has successfully navigated multiple acquisitions, and with guidance from IT Tax Advisors, they are optimizing tax structures, securing funding, and structuring deals strategically to maximize value.

Greg Northrop provided insights on how businesses should structure ownership, equity, and tax strategies to facilitate smooth acquisitions while minimizing tax liabilities.

Final Thoughts

This webinar reinforced the value of having a CPA who understands the unique financial and tax challenges of IT companies. The panelists underscored the need for proactive financial planning, clean financial records, and a tax strategy aligned with long-term business goals.

For those who missed the live session, a recording is available here.

For expert CPA and financial advisory services tailored to IT businesses, connect with IT Tax Advisors and iTValuations today.