From CEO: Tips to Finding a Good CPA
Happy February!
This time of year is notoriously busy when it comes to taxes and accounting. With our involvement in the cloud accounting industry, we’re very familiar with the ins and outs of finding a trustworthy and reliable CPA.
All taxpayers can benefit from hiring a CPA. But before you blindly hire an accountant from the yellow pages, take a look at our tips for finding the perfect match for your needs.
- Referrals are a great source for finding reliable CPAs. Ask friends, family, professionals, and colleagues about who they’ve used in the past, and what they thought of the services they received. This is a good starting point, but don’t go off of referrals alone.
- If an accountant promises you the world (“I can get you a huge refund! You can deduct everything under the sun!”), beware. You, not your accountant, are liable for all of the information on your tax return.
- If you don’t like the direction your tax experience is going, don’t be scared to politely move on to a different CPA. This is serious stuff, and you want to be totally comfortable with your accountant!
Different Types of Tax Professionals
- Big box tax preparation providers like H&R Block, Jackson Hewitt, and Liberty Tax Service are best suited for people who need to file simple, straightforward tax returns. There’s no guarantee of how experienced your preparer will be, and pricing is usually dependent on how many tax forms need to be filled out.
- An independent tax firm is usually equipped to handle basic to complex tax returns, but don’t assume one will have the skillset you need. Ask explicitly if they have experience with returns of your complexity, and go from there.
- Certified Public Accountants (CPAs) are accountants who have passed the rigorous CPA Exam and are licensed by the state they work in. CPAs will specialize in a specific area, such as audits, tax, or business consulting. CPAs are best at complex accounting work, and not all CPAs handle tax issues.
- Tax attorneys are lawyers who have explicitly specialize in tax law. Often, tax attorneys will have a master of laws degree in taxation (LL.M.) in addition to the required juris doctor (J.D.) degree. Tax attorneys are the most skilled in complex legal situations, such as handling estate tax returns or taking your case to the US Tax Court.
Questions for Your Tax Professional
Any reputable tax professional will be happy to answer these questions. If you’re met with resistance, they may not be the best fit for you.
- What types of licenses or certifications do you currently hold?
- Can you tell me how long you have been in the tax industry?
- What are your areas of expertise?
- Have you handled tax situations similar to mine?
- How do you break down your fees?
- Do you keep your work in house? Do you outsource? Do you use a third party?
- Can you give me an approximate completion date for my taxes?
- Tell me about your privacy policy. Who sees my personal information?
- In your opinion, am I paying the right amount of tax?
I hope these were helpful to you, and happy filing!
