In choosing the proper accountant for your business, it’s vital they not only save you money but help your brand avoid problems with the Internal Revenue Service. At the same time, your accountant must be able to help you understand your brand more effectively with vital information. Simply put, a great accountant does much more than simply crunch numbers. A good accountant will help you understand what the numbers mean to your bottom line. Since not all accountants are created equally, the following information highlights a few of the top questions to ask when hiring an accountant.
Since every business has its own unique complexities, one of the top questions to ask when hiring an accountant is whether they have specialized knowledge in your industry. For instance, if a potential accountant exclusively deals with large firms and you have a small plumbing business, this may not be the best match. At the same time, some accountants focus or specialize in certain industries, which could be extremely helpful for your business.
In addition to industry specific questions, you should also ask if the account has experience with businesses structured similarly to yours. It’s best to choose an accountant with specific knowledge about federal and state tax provisions that applies to your business. For instance, if you have a partnership, your filings will look completely different than if you were operating as a sole proprietorship. In any case, the things you may be able to write off can drastically vary based on the niche of your business.
Even though most accountants offer year-round services, some accounts limit their availability during tax filing season. As a result, one of the most vital questions you should ask before hiring an accountant is their availability. Make sure you have a general idea of their year-round availability and where your business fits into this matrix. In the best case scenario, you should choose an accountant that is able and willing to accommodate your year-round accounting needs past tax season. Another question you should ask is their policy regarding day-to-day communications. Since you will probably not be the accountant’s only client, make sure you have clarity on how soon you should expect to hear back in the event issues or question arise. It’s vital you have a clear picture of how the attorney stays in contact with clients before you make a decision to choose one over the other.
Since accountants are not one-size-fits-all, it’s important to understand the accountant and the types of services they offer. In any case, some accountants have more training and education than others, which means they will allow a wider range of services. As a result, one of the top questions you should ask before hiring an accountant is whether they are a Certified Public Accountant (CPA). CPAs are state-licensed professionals required to complete continuing education to keep their license. These professionals can provide tax filing and preparation assistance. At the same time, they can create financial statements, audit different aspects of your business, and review cash flow and balance sheet data to make recommendations. Unless the accountant is a CPA, they will not be able to provide such a wide array of services.
CPA and Tax Attorney
Tax attorneys and CPAs will offer significantly more experience with tax issues than a professional who works to prepare returns seasonally. In addition, CPAs and tax attorneys will have the ability to represent the business in IRS audits, hearings, appeals or other related matters. If your accountant is simply a tax preparer with no extra certifications or credentials, this professional will have limited abilities and representation rights.
CPAs are also qualified to offer your business estate planning and investment consulting. Certified financial planners and financial advisors can provide guidance on matters such as retirement planning, setting up a will, or establishing a trust. When you are interviewing different professionals, it’s vital to know the right questions to ask before hiring an accountant. Doing so allows you to understand the difference between accounting professionals.
At some point during your conversation, it will be vital to gain an understanding of how the accountant bills for their services. Some example questions you can ask about an accountant’s fees are:
For more information about questions you should ask before you hire an accountant, contact Dennehy CPA.
We at John F. Dennehy CPA are a team of certified public accountants who service clients throughout Long Island. The services that we provide are comprehensive, and we can resolve multiple accounting needs for a client.
