What Your Business Should Know When Selecting a Small Business CPA

Every small business needs the assistance of professional accountants. Even if the business owner is knowledgeable on correct accounting and tax practices, he should be free to focus all his or her time on growing the business.

But where do you start? How do you find the right small business CPA who can help you account for your business and make sure you get all the tax deductions coming to you? Here are some tips for finding the right CPA firm for your small business.

First and foremost you want an experienced and credentialed professional. Stay away from someone fresh out of college with no experience. See their office and request their credentials. A CPA certification is important. He or she has studied hard to earn the designation and the state as ruled him capable in all aspects of accountancy. A CPA firm should proudly participate in peer reviews to demonstrate their continuing attention to accepted principles and practices.

When you visit a prospective CPA firm, know what it is you’ll want them to do for your business. Aside from tax preparation, a CPA firm can act as an advisor. They can prepare financial statements, review and suggest improvements for your bookkeeping procedures, or even help you find and install computer systems to track financial information. They can advise on asset control, banking, obtaining funding and personal financial planning. Create your own wish list of possible services you want now or may require in the future and make sure the firm you hire is a capable provider of these services.

Be honest with yourself over your business’s financial acumen. If accounting and taxes is not an area of expertise you’ll want to choose a firm that has a good communicator at the forefront of your relationship. You want someone that will take the time to explain laws and recommended practices in terms you understand. Misunderstanding can lead to disaster!

Know your plans for your small business. How much growth do you plan for? Is the CPA firm you’re considering large enough to handle your growth? A single-person firm might be great at the communication needed in the early years, but will he be able to keep up with your business as it grows toward mid-size?

Ask the firm for references. Of course they’ll give you the name of a satisfied client who will give them a good reference. All firms should be able to put you in touch with a client to whom you can direct questions and concerns for a third-party opinion. For example, you can often get a better idea from a client about how “hands-on” a firm is than you can from firm representatives.

Always have a clear understanding of their fees. Ask lots of questions and don’t hire a firm who avoids answering them. You don’t want to go into fee shock at the receipt of their first bill. Get it in writing, and make sure your future billing agrees to the terms set in that writing.

Don’t downplay personality, especially if your business is small. You especially need to make sure your business ethics are in line with each other. You’ll be working with this CPA firm for many years on a regular basis. Even if hired only for tax purposes, you’ll be in contact with your CPA several times throughout the year. Be careful not to add the stress of conflicting personalities to your organization.

Professional Tax Accounting Services

Finding a tax accountant is very similar and the tips above should be followed. However, if the primary requirement is the planning for and the preparation of taxes for your business and/or personal needs, then the following aspects of the CPA’s practice should also be considered.

As mentioned above you’ll need to know what your requirements for your tax CPA are. There are quarterly filings and sales taxes to be done, of course. But a good CPA will help you do tax planning to avoid penalties and take advantage of deductions. They can assist you with cash planning so the quarterly payments don’t come as a surprise. Interview your prospective firms on how they do this successfully for their clients.

There are large tax chains in every city and many offer unbelievable deals on tax preparation. But be careful. These tax people often don’t have the skills and knowledge of a seasoned CPA and are often filled with tax “professionals” less than a year out of college. A more experienced CPA who’s concentrated in tax work for years will know the tax code from A to Z, and knows how to use it to your advantage.

Ask lots of questions. Use your previous experience and don’t be afraid to ask anything at all. You want to leave the office comfortable in the knowledge that this tax specialist knows what he’s doing.

Ask if they have any guarantees. How will the firm assist your business in case of an audit? What responsibility will they take?

Unfortunately there are scammers out there. Fake tax professionals set up offices to fool small business owners all the time. If the tax professional you are considering holds himself out to be a lawyer, check to see if he is a member of the state bar association. If an accountant, check with the board regulating accountants in your state. A CPA should be on file with the local CPA Society chapter.

Geeslin Group LLC is a Peachtree City CPA, located near Peachtree City GA, that would be glad to answer questions regarding your small business tax and accounting concerns.