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CPA: Useful Tips to Find the Right one:
An in-office consultation is helpful. You can tell a great deal about a CPA's work style by seeing his or her workspace. Is the office orderly? Are publications and resource materials current? (A 30-year-old tax code is not a good sign.) Is the office computerized? (Searches that are conducted by computer can save untold research hours and therefore untold money yours.)
During this first office visit you should be prepared to discuss in detail your accounting needs. Ask how the CPA might handle your file and how much effort would be required of you to put together your records and receipts and how much time you will need to set aside to meet with the CPA. Be especially alert to how the accountant will handle the gray areas and there are hundreds, if not thou-sands, of them in the tax law. If you are by nature cautious and conservative in handling your money or in dealing with the IRS, you probably won't be comfortable working with a
CPA who takes an aggressive stance, pushing the law as far as it will go. Conversely, if your style is to go toe to toe, you likely won't be happy in a confrontation with the IRS ifyour CPA hides behind you.
Whatever the CPA's style, look for an enthusiastic approach to work. Memberships in national and state accounting societies, articles published in accounting journals, a master's degree in taxation, or service on the state board of accountancy are indications that the CPA cares about the work. Participation in the community suggests more than civic consciousness; it also indicates that the CPA has a good grasp of your city's political and financial realities, which can prove especially useful in your local dealings. A well-informed and well-connected CPA can save you time, money, and energy, even in regard to your personal property.
Check the CPA's academic background. Accounting is a technical field, and training counts. You may be able to get some idea of where the CPA's interests lie if you ask the CPA to describe a recent continuing education course, although the reality is that many CPAs just take whatever course is available closest to home.
Few small firms have the resources to hire experts for in-house training. As a result, solo practitioners or CPAS in small firms must attend professional meetings to learn about changes in the field.
Ask whether the CPA will personally prepare your tax returns or will delegate the task. You want to meet the accountant who will handle your file, if it is not the CPA. Also ask whether the CPA would represent you before the IRS in case of an audit or would assign this task to someone else in the firm or even outsource it.
Requesting a fee estimate is appropriate. So is asking for a list of clients whom you may call as references.
You should feel that the accountant enjoys solving problems. Although accounting is often thought of as cut and dried, it is not. Creativity and persistence are some of the best accounting tools. The CPA should pose questions to you about issues that you didn't know existed.
Your CPA will be privy to the most intimate details of your financial life and sometimes of your person-al life, as well. So you need to ask yourself whether this is someone with whom you will feel comfortable working closely.
Interview at least five CPAs. The CPA with whom you decide to work should have spent a lot of time with you, asked you many questions~ and listened well to what you had to say.
Are you better off with a small or a large accounting firm? Small firms often give more individual attention to clients during most of the year. However, at tax time, most small firms do not have the time or the staff to review returns several times, a strategy that could save you trouble and money. At a large firm, unless your account is significant and you want to pay for one of the partners to handle it, your file may end up on the desk of a new and inexperienced member. You may want to pay more to hire a more experienced person who can spot a possibility or problem faster if at all.STATS AND FACTS: The majority of the nearly 400,000 CPAs in this country either practice alone or in a small firm. Individual taxpayers account for about one-half of the revenue in these firms. Search more information >>
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