HOW TO CHOOSE A CERTIFIED PUBLIC ACCOUNTANT Sound financial and tax planning is a foundation of good business. Perhaps you’re a whiz at balancing your personal checkbook, and the 1040EZ took you 10 minutes to complete. But if you know your business, you’ll hire an accountant to take care of it. Accountants handle more than taxes A Certified Public Accountant can devise an accounting system that best serves your company’s needs, tackles accounting aspects of business problems, helps organize, plans and monitors business activities, and creates computerized records geared toward keeping your books in order. A CPA can also offer advice on financing, inventories, cost, credits and collection for business, government and non-profit organizations. CPAs audit financial statements and report on them to investors, creditors and managers; assist clients in securing loans and credit; and work with lawyers and bankers in mergers, acquisitions and expansions. And, of course, they prepare tax returns, recommending strategies they believe will save clients the most money. Do your homework before interviewing a firm Catalog your plans and objectives. Ask questions about key decisions you’re considering making. Your lawyer most likely has run into the best and the worst CPAs in town. Ask for at least three recommendations. Your banker may also have some suggestions. You might also solicit references from other members of your field. Consult the American Institute of Certified Public Accounts in New York City, or its local affiliate. The institute has 6,000 member firms. Most chapters publish practitioner directories. A CPA is necessary if you need an audit of your financial statements for creditors or investors. Find a CPA firm that specializes in your area of business. Some CPA firms have specialties or individuals on staff who have specific knowledge of certain industries such as construction, retail sales, or manufacturing. Expect specialized service to cost more Feel comfortable with the firm you engage. There are too many accounting firms out there for you to settle for someone whose approach to financial and tax planning differs from yours. Part of feeling comfortable is getting the facts you need to make a decision. Don’t hesitate to ask for resumes of the firm’s top officials, written estimates of work, a history of lawsuits against the firm, and personal interviews with the people who will handle your account. Evaluate your company’s needs Which services does your company need the most: tax planning, accounting,, or management consulting? Does the firm specialize in that area? Can the firm handle the books for any branch offices you may have? Who will handle your books: - a CPA or a staff accountant? CPAs have college degrees in accounting and have passed a rigorous examination. They are state-certified. An uncertified accountant may have less training. How much does the accountant charge? Accountants’ fees depend on the number of services they are asked to perform. By keeping good records, for instance, you can save your accountant time and yourself money. Most accountants charge by the hour, although some charge a flat fee for preparing tax returns and bill for additional consultation. Others charge an annual retainer, which would include most, if not all, services. Speak frankly about fees. A contract should be signed before the work is performed, detailing the services to be rendered, costs and other terms of the agreement. |