Search:

Five Tips for Choosing a Business CPA

Are beginning a new business? Or do you have an old business--but one that needs a new accountant? Finding a good CPA can be a snap if you employ five simple tips:

Determine Whether You'll Outsource Your Bookkeeping

Some businesses like to do their bookkeeping in-house using an accounting program like QuickBooks. Other businesses like to assign the work to an outside service or to their accountant.

Either approach can work well, but before you choose a CPA, think about whether you want an accountant who also provides bookkeeping services. Some do. Some don't.

Often, by the way, CPAs that provide business bookkeeping services describe themselves as "comprehensive accounting firms."

Consider Your Need for an Industry Specialist

Many, perhaps even most, small businesses use a generalist accountant. But if you're in an industry with unique tax laws or special regulations, look for a CPA who specializes in your industry.

A specialist, by the way, will probably cost you more money. And you may not like (for good reason) the idea of your accountant also working with your competitors. But if you truly need specialized industry expertise, you may want to go this route.

A specialist CPA can suggest industry-specific tax planning strategies and accounting solutions, and such a specialist can refer you to other industry specialists at banks, law firms, and consulting firms.

Forecast Your Future Requirements for Accounting Services

Basically all small business CPA firms offer tax preparation and tax planning services for businesses and their owners. And most of these firms also provide consulting services to their business clients--especially in the area of selecting, installing and operating accounting software.

Your small business, however, may need additional services such as compiled, reviewed or audited financial statements. Accordingly, you want to think about any additional services you may need a year or two down the road.

Note that you don't need to get too carried away with this sort of fortune-telling. Don't worry about what services you may need ten or twenty years from now. Both your firm and your accounting firm will have changed significantly by then. Do, however, think about the services you'll likely to need over the next two to three years. Switching CPAs every five or ten years is fine. Switching CPAs every year or two is too much work--and makes you look to CPA firms like a flakey client.

Budget Your Accounting Fees Upfront

CPAs structure their practices in a variety of ways. Some CPAs charge their clients very modest fees. Other CPAs charge their clients rather large fees.

Accordingly, verify your budget meshes with the accounting firm's prices.

Two quick comments are in order about billing practices, though. First, CPAs that charge low fees of necessity do not spend much time on any individual client's tax return or question. Understand, therefore, that low prices mean you're buying only tiny slices of the professional's time. (In many low-cost practices, non-CPA employees do much of the work and the CPA only checks the work product at the very end--a bit like your dentist operates.)

Second, CPAs that charge high fees should be able to provide you with a markedly higher level of expertise and or service. You definitely should get what you're paying for...

Choose a Level of Personalized Service

A final point: If you want truly personal service from your CPA, look for an accounting firm that's either a sole proprietorship or a small partnership. In either of these cases, you're likely to regularly work with the owner or an owner year after year.

If you don't care about personal service, you can work with any size firm. Accordingly, you should consider working with a less personal large firm. Personnel within a large firm tend to charge more often. But a big CPA firm delivers a big advantage to some small businesses. Big CPA firms can offer your business just about any accounting service you would ever need.

Article Source: http://article-kingdom.co.uk

Bellevue WA CPA Stephen L. Nelson is the author of QuickBooks for Dummies. Nelson also publishes the do-it-yourself limited liability company web site.

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Business Articles Via RSS!

Additional Articles From - Home | Business

Business Lessons from the Lazy River - By : Linda Feinholz
5 Children's Businesses You Can Start For Under $10,000 - By : Cash Miller
Loosen Your Grip and Boost Your Productivity! - By : Linda Feinholz
Playing the Interview Question and Answer Game - By : John Pawlett
Do I Need a Public Officer for Company Registration? - By : Rich Muir
Stock Market Overbought or Oversold? Don't Kid Yourself! - By : Rob Mitchell
How To Set Up A Successful Sale - By : Kim Hutson
Set Yourself Up For A Long Term Income On The Internet - By : Kaye Dennan
Best Home Based Businesses - By : Ann Ronan
The Pathway to Identify and Making Exponential Improvements - By : Donald Mitchell

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Article RSS Feeds

About Us
Link to Us
Contact Us
Privacy Policy
Terms of Service

Find Local Vehicles

Online CRM Solution

Swim Club Software