You have a profitable small business. You are helping your consumers, and they are rewarding you with the one thing every business requires to thrive: money.
Indeed, you may have started making so much money, and your firm is expanding so quickly that it is time to hire someone to assist you in keeping track of it. Now is the time to hire a Certified Public Accountant (CPA).
How do you find a qualified CPA
Why Do You Need a CPA for Your Small Business?
An accountant is a specialist who handles all of the detailed and necessary math activities associated with running a business: bookkeeping, financial documentation such as tax returns and profit-and-loss statements, and financial planning. A CPA is an accountant who completes the Unified CPA Test and meets the educational and experience criteria of the state where they live.
To put it another way, CPAs are all accountants, but not all accountants are CPAs. And, while a CPA cannot ess decisions for you—after all, this is your business—a CPA may provide sound advise and assist you in making sound judgments, in addition to managing all of the following tasks:
Tax guidance and planning: Assist your company in saving money on taxes today and planning for future tax circumstances.
Audit and assurance: Assist in identifying any issues.
Management and consulting: Act as your chief financial officer (CFO), assist with budgeting, risk management, and financial statement preparation for shareholders.
Forensic accounting is the study of books in order to prevent or detect fraud or embezzlement.
Payroll administration entails ensuring that everyone is paid on schedule and that all payroll withholdings are handled correctly.
Accounting entails handling invoices and accounts receivable, ensuring that bills such as rent and utilities are paid on time, and paying vendors on time.
As you can see, a CPA can assist you with much more than just bookkeeping and tax preparation.
Where Can You Get the Best CPA for Your Small Business?
Before you begin your CPA search, consider what services you will require from them. Will they only be in charge of accounting and payroll? Will you need a CPA to be a full-time financial expert? Once you’ve decided on that, it’s time to start looking. Here are a few methods for locating the best CPA:
Look for them online, but double-check their credentials.
Whether you ask Siri, looking for the correct CPA online is a fantastic place to start. In both circumstances, you’ll most likely be given a list of CPAs in your area. Because results are often sorted by zip code you might need to expand your search radius to view more potential CPAs.
When looking, make certain that the person you discover is a Certified Public Accountant. That indicates they passed the exam and have a license from your state. In addition to taking the exam, CPAs must complete continuing education requirements to maintain their licenses and stay current on all federal, state, and local tax regulations. they Should have a Preparer Tax Identification Number if they are going to prepare your taxes (PTIN).
Make contact with a reputable professional.
Choose a successful person and mimic what they do if you want to be successful. This approach can be applied to almost everything. Do you want to become in shape? Pick a buff person or gal and mimic what they did to become in shape. Take advantage of their success—you don’t have to learn everything from scratch all the time! The same may be said for financial advice.
As Dave started his radio show, people began asking him to name trustworthy professionals to whom they may seek financial assistance. That is why he established the Endorsed Local Provider (ELP) program for small businesses. It’s not a bad place to begin your quest. These men are locals who enjoy discussing tax planning and bookkeeping. You’re also not starting from scratch.
Greet them face to face.
It’s always a good idea to meet the individual who will be handling your money in person. You want to trust your CPA because you will be the one who pays if something goes wrong. If you phone them and they are hesitant to meet in person, call someone else. Attend the meeting with someone whose judgment you trust.
If you are not married, bring along a trusted friend or a mentor to obtain an unbiased view.
Questions to Ask a Certified Public Accountant
So, what questions should you ask a possible CPA during your meeting? You should inquire about their experience, the size of their staff, and whether they have a specialty (and what that specialty is).
To get you started, consider the following questions:
1. Ask how long have you worked as a CPA?
This is relatively simple. You probably don’t want someone who recently graduated from accounting school if you have a challenging accounting scenario. Try to find a CPA who has at least two years of experience.
2. Are you available all year?
This may not seem like a big concern if you only require a CPA for a one-time audit or to submit your taxes. But if something comes up, be sure it’s their full-time employment and not a side hustle they just do around tax season.
3. Can you represent me before the IRS?
Many CPAs are also Enrolled Agents, which means that if you get into difficulty with the IRS, they can represent you and speak on your behalf during hearings. Being audited by the IRS might feel like the Spanish Inquisition, so having someone on your side is quite helpful.
4. With whom will I be collaborating?
It is not uncommon for a CPA to have a support staff. Find out how big their company is, what their team members’ qualifications are, and how they prefer to interact.
5. What is your fee structure?
It is perfectly acceptable to inquire about their pricing and billing procedures. Some services may be charged on a per-job basis, while others may be priced on an hourly basis. Attempt to obtain a written estimate.