Finding the right CPA

I thought I would cover something that is of the utmost importance when running a successful business, finding the right CPA/Tax professional.

You may or may not already have an accountant or CPA that you consult with regularly or that does your year end taxes.  If you do have one then that is great. 

Even if you already have a “good” CPA on your team, in this article I am going to cover some things that will help you decide if your CPA is the “right” one for your situation. 

If you don’t have a tax professional, this article will help you in your search for one as well.

A CPA/Accountant has to be one of the most valuable pieces to the puzzle in running a successful business.  In fact I consult with our CPA on a weekly basis and part of the success of our company depends on them.

They help point me in the right direction on various aspects of tax mitigation, decreasing expenses, reporting, and book keeping just to name a few things.

Your CPA needs to be your best friend when growing your business.  After all, their job is to know the tax laws and keep up to date on what you can and can’t do when dealing with the IRS.

Let me tell you a quick story before continuing.

I have been in the internet marketing/network marketing industry for going on about 7 years now.  When I first started I basically thought the only purpose of a CPA was to do my taxes at the end of the year.

Boy was I wrong.

As my success grew and the more and more I got into the daily activities the more I understood how important a good CPA really is.

It took me a few years to find the right CPA for my situation. In fact in the last 4 years alone I have went through 5 different CPA’s until I found the right one.

I learned the hard way, so you don’t have to go through what I had to.

The main thing you need to understand is that it is impossible to know all the tax laws.  They change on a daily basis.  Your time is better spent somewhere else, like on tasks that directly lead to making money.

CPA’s have to know the tax laws, they have to stay up to date.  So it is important to find a competent CPA to help with your situation. 

So you may have the question in your search for a CPA…  “What is the different between a CPA and an accountant?”

An accountant should be considered a tax preparation advisor and book keeping expert.  Consider them the number crunchers.

A CPA on the other hand takes it to a whole new level.  They must take many hours of training, pass a rigorous series of tests, and take a minimum of 40 hours of continuing education each year to keep up on the ever changing laws. 

CPA’s must be looked at as more than just number crunchers and tax planners.  They are more of business and financial strategists who are there to help you grow in your business. 

They can help you diversify investments, plan for the future, and help in many other business and consulting services.

So if you have an accountant or are looking at getting a good CPA or accountant, may I recommend finding a good CPA, make him/her your best friend, trust them, and consult with them on a regular basis.

So how do you pick a good CPA?

Well here are some rules that I go by now after finding so many of the wrong ones over the years.

1.     Promptness in responding to questions or inquiries that you may have for them.

You don’t have time to wait for responses.  So it is imperative that you have a CPA that responds quickly.

If they don’t respond within a reasonable amount of time, then they may not be the right CPA for you. 

I heavily weigh my decision on working with a CPA on this step.

2.     Personality

Now this is a big one!

If his or her personality and person ability doesn’t match or mesh with yours then you may want to find someone else.

After all remember when I said, “you need to make your CPA your best friend?” 

Well you wouldn’t have a friend that didn’t match your personality or that you get along with now would you? ;)

I look at it this way.  If I could go out and have a beer with my CPA and shoot the breeze and not think anything of it, then they could very well be my CPA. 

Of course this is not the only thing I base my decision on.  Know your CPA, become their friend, and consult with them on a regular basis.

3.     Ability and Knowledge

If you potential candidate doesn’t have knowledge to help you in YOUR business and they don’t know the tax laws that apply to your situation, then move on.

Quiz them on various aspects of your business and the various tax laws that apply to your situation.

For this step you may want to do some homework.  Study some aspects for yourself, state tax laws and sales tax etc…

If your potential CPA candidate can’t answer your questions without doing some research for themselves, then you may want to move on.

Of course there are some instances that may come up where they may have to do more research, which is fine.  After all you can’t know everything!

If him or her can answer most of your questions and can do so off the top of their head with confidence and consistency then you may have a winner.

4.     Ability to adapt and learn your business.

As you know, running a business you are constantly running into changes on an almost daily basis.

You have one idea, but that quickly turns into ten more ideas, and then it quickly spirals out of control until you don’t have a clue with what is going on.  I know it seems like that some days here at our office.

So it is imparitive that you have a CPA that can learn your business, I mean every aspect of it, and adapt to all the changes that come about on a daily, weekly, or monthly basis.

Business isn’t easy, but it can be made a little easier when you have smart people that will learn your company, what it does, and keep up with you as you grow.

If your CPA is not willing to adapt and take a proactive approach to your business, you may want to look elsewhere.

After all you need someone who is willing to grow as you company and business grows.

5.     Book keeping

This is an important aspect of business that some people over look that needs to be kept up.  What I am talking about is book keeping.

I prefer to have my CPA and his office handle our entire major book keeping tasks.  I basically look over the information, and micromanage.

But for the most part they handle all of the major categorization, and record keeping based on what information I give them each month. (ie. Bank and credit card statements).

This is a personal preference, but if you are going to have a CPA on your team it is probably a good idea that you have them keep your books as well.  After all it will be much easier come tax season for them to know where you business is at, as well as give you tax and professional advice as each year moves along.

If your CPA candidate isn’t willing to take on the book keeping responsibilities then…  You guessed it! Find a different one.

Now don’t get me wrong they handle a good majority of our books but I also have a good handle on things as well. 

6.     Being proactive yourself

Now we have covered quite a few ways to figure out if a CPA is right for you and your business, but the last thing you need to realize is that you need to play a big part in if your CPA is performing for your business or not.

Things you must do…

·      Talk to them on a regular basis to make sure they are staying on top of things.

·      Get them all the documentation they need to keep good books each month.

·      For god sakes ask questions.  Do research on various things on your own and ask their opinion on certain things.

·      Keep them up to date.  If you want your CPA to grow with you, they need to be kept in the loop on major changes in the business or consulted with before major changes take place.

As your business grows, your CPA needs to grow with it.  I hope this little article gives you an idea of what to look for when finding the right CPA for you and your business.

The best thing you can do above any and all things I have said here is use your best judgment. 

I learned the hard way so you don’t have to.

Talk soon,

Justin Christianson
CFO, Partner Magnetic Sponsoring LLC