Choosing a CPA
A Certified Public Accountant (CPA) can serve as a financial advisor to businesses, financial institutions, nonprofits, and even government agencies. CPAs can also help individuals out with tax preparations, personal financial planning, estate planning, and other financial affairs. Finding the right CPA to rely on, though, requires some due diligence on your part, as well as an understanding for exactly what you want your prospective CPA to do.
The first step is to find the right CPA for your specific needs. A good way to do this is to ask your friends, family members, neighbors, and business associates for some recommendations. When you are choosing people to survey, try and focus on those who are in a financial situation that’s similar to your own.
You can also check with other business professionals, like your banker or lawyer, your hometown’s chamber of commerce, or any small business owners of establishments that you regularly frequent. Some state CPA societies also offer online services to help individuals locate a CPA near them who can address their specific needs.
After doing your research and coming up with some potential candidates, the next step is to determine the qualifications of your finalists. Finding answers to the following questions could put you on the right path:
Is the Candidate Actually a CPA?
There’s a difference between an ordinary accountant and an actual CPA. To earn the CPA designation, an individual has to have passed a very challenging two-day national exam. So, if they have “CPA” after their names, you can feel safer that these individuals know what they are doing.
Does the CPA Have a License to Practice in Your State?
There are very stringent state licensing requirements that distinguish a CPA from other accountants. Most states require CPAs to have at least a college degree, but some require a graduate degree as well.
Does the CPA have the Expertise and Personality to Satisfy Your Needs?
Whether the CPA is compatible for you personally is harder to define than whether they have the technical skills and accreditation to do the job. However, it’s just as important because you want to be able to develop a long-term relationship with your CPA that will help you meet your current and future financial needs and goals.
What Does the CPA Charge?
A CPA bases his or her fees on the time required to satisfy your goals. The fees will be based on the type of service provided, the CPA’s level of experience, and the difficulty of the requested tasks. There are options you can investigate, however, that can impact the fees you’ll have to pay. Be sure to ask the CPA what it would cost to have your work done by a staff accountant supervised by a CPA, a higher-level employee like a supervisor, or even a partner in the CPA’s firm.
With this information, you’ll be able to make an informed choice in finding the CPA that’s right for you.