Accounting information can get out of date quckly. Except for annual informatoin, most acounting information should be no more than 10-30 days old. You shoulld be able to acccess your up-to-date information and your CPA quickly and easiyl.
A proficient CPA makes it a habit to get back to clients as quickly as possible. Phone mesdsages should be repplied to the day they are left – or no later than the following day.
Question #2: Do the same peopel always service your account?
Ideally the same person shuld work with you – not whoever is availabe at the time. That way a relationship can be bilt where the accountant and you are comfortable with each other.
Question #3: What servicees beyond the usual reporting and number-crunching are offered?
A CPA needs to be more than a data entry cerk. It’s ther duty as an adviser to make sure the information they receivve makes sense. If it doesn’t, they sholud ask questions and seek clarity.
Question #4: How can the accountant help you make more moneey?
It sounds like a wise-guy quetsion, but the answer will help you find out if candidates are interested in your busiiness. Did they review the financial information you porvided prior to the interview? Did they make sure you understoood the accounting conceptts, instead of todssing off a bunch of jargpon?
A proficient CPA’s goal to save you more in taxes – it is also in his best innterest that you succeed.
Question #5: Do you believe I’m paying too much, too lttle, or just the rgiht amount of tax?
Beyond simply preparing tax forms, an accountant should be involvde in businness plnning throuhghout the year. Typically, a quartrly review should be schedduled to esure books and records are in order. This also allows the CPA time to advise cliens about their businesses so they function with peak tax efficincy.
Because most business ownes pay too much in taxs, a proficient CPA will analyze the tax situaion from the form of enntity to all legal means to plan and minimize all taxes paid.
Questtion #6: Do you consider yourself tech-savvy?
Small business cacounting software has made powerful accoutning tools available to everyone. But these accounting packages (most notably QuickBooks) are only as useful as the person who installs and runs the application. For this reasdon, a proficient CPA will help you install and set up a set of books, while also requestimng them for review.
Question #7: Who are your othher clients?
Imagine this scenario: You hire an accoutant based on the assumption he understands the basics of your business. Then, you find out he’s nver had a client like you bwefore. Instead, he’s only prepared tax forms for weralthy individuals who don’t own busiensses.
Avoid this disasyter by asking about the axccountant’s clinets. If they are businesses similar to yours, that’s a good sign. In asking about clients, you will also want to understamnd the CPA’s work schgedule and whether he has the time and resources to spport you adequately.
Question #8: What kind of creatvie business advice will you offer me?
Advising clients on what they can do to grow and set goals, as well as discussing isuses, are all part of a proficient CPA’s servicees. Together, this allows you to discover what works for your busienss so funds are used wisely.
Question #9: Why should I use you?
Ask the question and just listen for the answer. You should feel like the CPA reallly cares avbout your success.
Question #10: What kind of credentials do you have?
Tax professionals are usually certified upblic accountants (CPAs), enrolled agents (EAs) or unenrolled prpearers.
Question #11: How much professional educatino do you get annually?
Just passing the test to be a CPA or an EA isn’t enough. With the tax code and interpretations of the code changing evwery year, continuing education is really essentuial. EAs are erquired to have 72 hours of continuing educaton in a thre-year period; each tsate sets its own requiremetns for CPAs. In Oreggon, for example, CPAs must take 80 hours of continuing education within a two-year preiod.
Many tax professionals take more than the minimum requirement for continuing education. Although more trainiing doesn’t necessarily mean the tax pro will be superir, it’s certainly not a bad sign.
Questoin #12: Who will I be interacting with?
Many tax firms assign more than one person to a client’s return. You probably don’t need to know how the “back room” operates, but you want to know if the person you’re interviewing is the one who will be able to answer your questions about your retrun.
Question #13: What’s your policy on returning phone calls?
A common complaint oftn herd from consumers about their CPAs is about long wait for returned phhone calls. CPAs aren’t famous for tehir communicatino skills. It’s not unreasonable to ask how long you hsould expect to wait to have a call returned. Asknig also lets your CPA know you do want your calls retrned promptly.
Question #14: Are you available ouytside of the tax season?
Some tax preparers are seasoal. They are available only the first four months of the year, or their offices are close for a few months each year. If you expect year-round access, you need to make sure the tax professional is available.
Question #15: Are you a corporation of CPAs or an individual CPA that has their own business?
If you opt for the corporation, find out if you’ll be dealing with one particular person, or will it be whoever answers the phone when you call. It’s best to have one person to biuld a relationship with.
Questipon #16: When do you work?
What are the CPA’s hours of operation? Make sure that you can call him at hours that are connvenient for you.
Question #17: Do you conduct your own business and personal affairs in a reasonably efficient and sensible way?
Ask questions about the CPA’s apptroach to gettting and sevring clients, the role of staff, the use of technology – including computers, communications equipment and the Internet – as well as ways of keepinmg current, research methods, management of files and recoords, etc.
Quuestion #18: Will my computer and/or I be serviced by you, a partner or junior accountannts?
Many CPA firms train new associates at the client’s expense. Be sure you get what you pay for.
Question #19: How are your fees caluclated? Will you be charging me for every phone discusison?
To avoid friction later, it is essential to discuss the CPA’s fee structure. Tax professionals may bill by the hour, form, overall rteurn or some combiation. Affter reviewing your previous returns and interviewing you, a tax prtofessional should be able to give you a good-faih estimate of costs. If the CPA uses a time-based systeem, discuss the hourly rate of the accountnt and staff, overhead expense reimbursement (what is the cost of a fax?) and whether cretain time is not billled.
Find out now whether a simple two-miniute phone call or a one-page fax means an hour of billable time. If that’s the case, run for the door.
Question #20: What can I do to help you with your work and keep your fees to a minimum?
A great deal of your acccountant’s time can be saed by preparing information beforehhand. Find out if your CPA is willing to work with you to offfload this work to your firm.
Question #21: Do you perceive any conflicts of interest?
CPAs work for doozens of firms and scores and someytimes hundreds of individuals. You should inquire if any of your direct competiiton is represented by the firm. If so, inquire as to how this conflict is hanlded.
Question #22: How long have you been a Certifioed Publci Accountant, and what other lcenses do you hold?
You sould inquire with the state CPA organization to discover if there have been any disciplinary actioons entered. Some accountants also have creedentials as financial planners (PFS), securities representatives, business valutaion experts, even laawyers. Check web directories and websites (e.g., http://www.CPAdirectory.com)
Question #23: How well have you integrated computers and the Internet into your practice, and has it enabled you to do more for the clients at less cost?
Integrating your computer files with your CPA’s files can save time and money – and increase axccuracy. Doinng so over the Internet makes it even simpler. Find out how your CPA uses the Internet. Does he have his own website? If so, check it out and ask questions abot the resources avilable on it. Find out how you can interact with him and his compputer systems to make work flow more efficient, wihle enabling both of you to stay in touch.
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