How to find the right CPA for you
It is not a one size fit all. If you are looking to work with an accountant, or looking to switch accountants, it is important to ask the right questions to find the right one for you. Building a professional relationship with an accountant can be immensely advantageous to your overall financial success. These are five essential topics to work through during your consultations.
Does the CPA remain up-to-date with new legislation?
To best serve clients, CPAs need to be proactive in understanding new and pending legislation from federal, state, and foreign governments. To keep up with changes in how we conduct business and even to complement a nation’s current economic, political, and social environments, accounting and tax laws are continuously evolving. The good news is that these changes create new opportunities for you to leverage the rules and regulations in your favor – whether it be new deductions, credits, or even tax-advantaged investments and capital. A CPA who invests the time and resources to stay current with new developments will ensure you do not miss any opportunities that are right for your specific situation.
Does the CPA understand the specifics of your industry?
Even though the majority of accounting and tax law is not industry-specific, some industries have particular accounting and tax complexities. It is important for your accountant to know the intricacies of your industry, whether you run a restaurant, law firm, dentist office, or an online store. Your accountant does not necessarily need to work with other clients in that sector, but they do need to be knowledgeable about the work required or open to learning with you. Taking it a step further, an accountant who is knowledgeable about the details of your business can leverage data to provide strategic advice to help you achieve your business goals.
Is the CPA available for guidance throughout the year?
Your accountant should encourage you to reach out with questions throughout the year! Meeting with an accountant once a year at tax time may be a viable strategy for some individuals, but consulting with your accountant throughout the year will set you up for success. Remember this when it comes to your taxes – tax preparation is reactive; tax planning is proactive. Income tax returns are filed once a year for the prior year, but income tax planning is a year-round process that aims to maximize your tax savings. The more we know about what is affecting or will affect your finances, the more time we have to help you capitalize on any opportunities. Even the best accountants know that once the year is over, your chances to maximize your tax savings are limited.
Does the CPA have your best interest in mind?
The accountant-client relationship should extend beyond statistics, and working with an accountant who understands your needs and aspirations will benefit you the most. It's easy for us to advocate for the best strategies, but it's even more vital for us to be able to tailor specific strategies to your budget, needs, and goals. Knowing how to manage various techniques to work within the confines of what you are comfortable with is an important aspect of advising our clients. An accountant who does not recommend what is best for you and instead pushes for the plan that will make them the most money is likely not looking out for your best interests. Are they presenting you with several options? Are they explaining how the plan of action will benefit you in the end? Is there more than one course of action to maximize your advantage - for example, one now and one that makes more financial sense in the future? These are things to be on the lookout for!
Is the cost of the CPA’s services within your budget?
Accountants have varied levels of experience and approaches to providing their services. Understanding the services provided by your accountant and how those services are billed is crucial to avoiding any unexpected charges. It is common to request a review of a proposal prepared by an accountant. In fact, it is strongly advised that all parties agree on the scope of work and fees before starting to work together. The right accountant for you is one whose services are suited to your needs while being within your budget. The benefit of working with your accountant should outweigh the cost.
There is a suitable accountant for you out there. You might need to consult with several different professionals, but do not let that deter you. We frequently hear horror stories from new clients who chose to deal with the first accountant they encountered. Working with the right professional straight away is preferable to later having to go through the hassle (and cost) of switching. As the saying goes – if you think good advice is expensive, just wait to see how expensive bad advice is.
