| When choosing a professional to help you file your | | | | additional training and has passed the Accreditation |
| income taxes - whether you are an individual or are | | | | Council for Accountancy and Taxation (ACAT) exam. |
| running a small business - choosing the tax accountant | | | | This is a voluntary accreditation and is meant to signify |
| with the right credentials is key. Flipping through the | | | | that this accountant specializes in accounting services |
| phone book or browsing through online business listings, | | | | for individuals and small- to medium-sized businesses. |
| you'll likely encounter a veritable alphabet soup of | | | | Certified Financial Planner (CFP) |
| acronyms such as CPA, CFA, CFP, CMA, ABA and | | | | A CFP can help you with your investment goals. CFPs |
| others. In fact, there are upwards of 46 different | | | | are a good choice if you are planning for the future, as |
| acronyms that relate to certifications in accounting, | | | | they can offer a broad range of financial advice. |
| finance and business. Of these accountant credentials, | | | | So,which financial professional should you choose? |
| you're most likely to retain a CPA, ABA or CFP. Here's | | | | That all depends. Are you looking to file your individual |
| what each means: | | | | income taxes? Are you starting a small business? Or |
| Certified Public Accountants (CPA) | | | | are you trying to build a reliable investment portfolio for |
| CPAs are most well known for preparing taxes, but | | | | the next 30 years? Different professionals serve |
| they can also advise you on how to structure your | | | | different needs. |
| small business and setup a bookkeeping system as | | | | The best way to determine whether a financial |
| well as help you plan for retirement, college and | | | | advisor is a good fit for your needs is to schedule an |
| organizing your estate. CPAs must undergo rigorous | | | | interview or consultation. Many accounting firms have |
| testing and continuing education to maintain their | | | | multiple specialties that work in conjunction to serve |
| licenses. This means accountants who are CPAs are | | | | your needs. For example, some CPA firms also offer |
| highly qualified with up-to-date knowledge of the latest | | | | business consulting for small businesses and can help |
| tax laws in their local area. That means a CPA | | | | you set up a QuickBooks accounting system or |
| operating in Seattle or Bellevue is required to be | | | | provide advice on how to incorporate your |
| well-versed in both federal tax law and Washington | | | | independently owned business. So, take your time and |
| state tax law. | | | | interview at least three different accountants before |
| Accredited Business Accountant (ABA) | | | | deciding which one works best for you. |
| An ABA is an accountant who has undergone | | | | |