How Do I Pick A Good CPA?

[moneywhisperer]

I need to get a CPA to do taxes for a small business. What are the right questions to ask to figure out if the CPA is good at what they do & will give appropriate guidance to the business on tax matters?

[commentator]

In most states you can verify that a CPA (and his/her practice) is licensed (registered) with the state board of accountancy. You can also determine whether the CPA or firm has been subject to disciplinary action.

Ask your banker, insurance agent, etc for recommendations.

Ask the CPA about his/her client mix. Does the firm have other clients operating businesses similar to yours?
Ask how the CPA keeps clients informed about relevant tax law changes and planning ideas.
Ask whether other services you may need are offered.
Look for hints of honesty or dishonesty.
Look for hints of professionalism/competency etc or the lack thereof.
Ask what other relevant certifications are held by the CPA or other professional staff.

[moneywhisperer]

Thanks - that's the kind of pointed questions I don't know to ask yet, but need to know!

Where do you look up disciplinary actions for CPAs?

[commentator]

Jan 4, 2011 15:33:40 GMT -5 @moneywhisperer said:

Thanks - that's the kind of pointed questions I don't know to ask yet, but need to know!

Where do you look up disciplinary actions for CPAs?

It will be somewhere on your state government's web site. Try state board of accountancy as your search terms.

[commentator]

Jan 4, 2011 15:15:12 GMT -5 @di said:

(Secondaries Double Check what the first does).

Never heard of such a thing, at least not on a routine, recurring basis.

If new client asked me to "double check" a return prepared by someone else I would probably bill them the same amount as I would for a return done from scratch.

[❤ mollymouser ❤]

In some states, court records are also available online. When I'm curious or suspicious about a person or business, I run a quick check to see if they've been involved in any civil lawsuits. This has steered me away from a number of contractors. (Not CPAs ... but the same idea would apply)

[cpadvisor]

Jan 4, 2011 15:51:21 GMT -5 @commentator said:

Jan 4, 2011 15:15:12 GMT -5 @di said:

(Secondaries Double Check what the first does).

Never heard of such a thing, at least not on a routine, recurring basis.

If new client asked me to "double check" a return prepared by someone else I would probably bill them the same amount as I would for a return done from scratch.

We review prior year returns for potential clients for free (in general). I had two recently that were rewarding. One I have yet to complete, but we are amending 3 years of S Corp & personal returns to claim the Domestic Production Activities Deduction because it was completely ignored for this manufacturer.

The one I just completed was to amend 2 years of personal self-prepared returns. The main issue was the client (and his tax software) did not understand that education credits could double if the school was located in a midwest disaster area in 2008. He and his wife attended schools in the disaster areas. So, we were able to take a tution deduction as well as double the lifetime learning credit for these tax payers. Between his two returns they will net approx. $3,200 for allowing me to spend a half hour reviewing the returns.

It has worked numerous times for us in the past!

[cpadvisor]

Oh, i see what you are saying. Current year returns....

ignore my previous message, unless you aren't reviewing prior year returns either...