How To Hire A Certified Public Accountant

Hiring a CPA firm is much like hiring an employee. There are several steps that are involved in both processes. First, you need to narrow the possible choices. Ask your banker, attorney and other business associates what CPA firms they use or recommend. You may want to check business directories for firms in your area, such as Trade Association or various Chamber of Commerce directories.

Once you’ve narrowed the field somewhat, the next step is to meet and interview each prospective firm just as you would have questions prepared when you interview a prospective employee, you will want to have certain questions answered by your prospective CPA: 

• Does the CPA have experience and knowledge in your specific industry?

• What types of services can the CPA firm provide?

• tax preparation 
• financial statement preparation 
• bookkeeping assistance 
• computer consultation 
• tax and financial planning 
• management advisory consultation

• How long has the firm been in business? 

• What will you need to provide the CPA in terms of records and information?

• What will the CPA provide to you in return? 

• How does the firm keep clients informed of new tax laws, etc.? 

• Can the firm continue to service you as you grow?

• What is the firm’s fee structure and how can you expect to be billed? 
  
• Who will be responsible for servicing your account?

• How often can you expect to be contacted by the CPA during the course of a year?

• Can the CPA give you any client references that you can call?

Don’t forget the CPA should be asking you relevant questions about your business during your conversation. In weighing your needs for accounting services, consider the five basic benefits any accounting firm, your company:

1) competent tax assistance 

2) better cost control

3) order in your accounting system

4) credibility in your statements

5) compliance with the law

Those are the basic payoffs that should govern not only your choice of services but the determination of their value.

You’ve now interviewed potential firms. What guidelines should you use to make your selection? Small business executives and public accountants agree that the three most important criteria are personal attention, reputation and experience.

Personal attention, for example, should be synonymous with commitment, compatibility and responsiveness. Will the principal of the accounting firm be directly involved in your business? Will you and your staff be comfortable with the individuals who will actually be doing accounting work? Will your accountant be there if needed?

Reputation - the second most important criterion has little to do with prestige. It’s a matter of how bankers, attorneys and other businesses in your community regard the accounting firm. Also, try to check on how the accountant stands within his/her own profession.

Finally, experience counts. What does the accountant know about your industry - specifically, small business in your industry. A current client list will help answer that question, but it is also one that should be addressed personally by those who will be working with your company. Assume that the professional is fluent in accounting and finance; the important question is whether or not he or she can speak your business’s language.

Your accountant should be someone you can trust, someone who understands how your business operates and someone who is willing to listen and respond with ideas. When you find a CPA who fits that description, chances are you’ve found your best professional advisor.