There’s no use trying to find an accountant on April 14th and hoping that your issues will miraculously be resolved by tax deadline time. Like hiring other professionals and vendors for your business, you want to take your time to select them carefully. And you want to have them in place before you have an immediate need (read: crisis).
So how can you go about finding one and what should you ask? As Gray Rollins points out in his article, “How to Choose the Right Accountant,” there are certain things you want to look for:
- Find someone local. Tax laws vary from state to state and you want someone who’s up to date on your issues.
- Ask people you trust. Sure, you could go to the Yellow Pages, or find an online ratings system. But if you ask people you know (like other entrepreneurs), you can better gauge whether a particular accountant is a fit for you.
- Get their qualifications. You’ll want to work with an accountant who understands your issues. Those who specialize in tax preparation for W-2 employees may not know all of the benefits in the Tax Code that are available to business owners. Similarly, accountants whose client base focuses on machine manufacturers might not have the same level of familiarity with the best tax structures for knowledge workers.
Still stumped? My How to Choose and Use Attorneys program contains a full questionnaire of 20 issues you’ll want to raise with most professionals you hire—not just attorneys.
What questions have helped you find the right professional advisors–or weeded out the wrong ones?
I just have to comment. Being a CPA, I am not convinced that it is crucial that you find a local accountant. I have clients all over the country and I read endless accounting and tax information and I make it my business to stay current.
I think it is much more crucial that you sense that the person you choose is willing to acknowledge that they don’t know everything. The tax law is so convoluted that it is impossible for anyone to know everything. It is more important that they have a sense of what they don’t know so that they know they have to research it.
I also think it is crucially important to find ask whether they have continuing education in the area that you are looking for. For example, if you want someone who will do your taxes, you want to be sure that the person you are selecting is doing at least some of their continuing professional education in tax so that they are keeping up on latest developments.
Thanks for your comment, Avi. I mentioned the importance of finding someone local, because I’ve had clients use people who were out-of-state who weren’t up on the latest changes to NY State and City tax law (which can get quite convoluted) … and that got them into trouble. While you’re right that you can keep up-to-date from anywhere–you’re a clear example of that–I’m not so sure they do. But you raise some other good questions that entrepreneurs can ask, such as “what do you do to stay current on the tax laws?” And “what about the tax laws in my jurisdiction?” Thanks again for weighing in!