| Welcome to the electronic age. It's entering every area | | | | This is the challenge so many small business owners |
| of our lives, including taxes. With all the tax preparation | | | | face and the reason so many bookkeepers are |
| software available to us these days, many don't even | | | | performing way below the necessary standard in |
| bother hiring a tax preparer. | | | | majority of small businesses. The selection process |
| Do It Yourself Tax Return | | | | just wasn't what it needed to be. And there is no |
| If you are computer savvy and have a very simple | | | | ongoing training and supervision. All that can change |
| financial life, you may be fine doing it yourself. Still, I | | | | when you hire a part-time Controller. |
| would encourage you to actually calculate your return | | | | The same can be said for tax professionals. Errors on |
| using a couple of different programs (try those | | | | tax returns go undetected for years unless there is an |
| available for free). You will be surprised at the results. | | | | audit or a new tax preparer takes over and reviews |
| When I last did it, they all calculated a different amount | | | | the past returns to find and an amended one will be |
| of refund! | | | | needed. |
| To be sure you are working with a reliable program, | | | | One Professional Selecting Another |
| select it from the IRS website and use the ones IRS | | | | This is what I do for my business clients - I take their |
| endorses. | | | | latest tax return and set up several interviews with the |
| More Complex Tax Returns | | | | tax preparers in the area who will be glad to review |
| In each person's life or business there comes a point | | | | the tax return as part of the interview process. I make |
| where doing it yourself just isn't an option anymore. | | | | notes on what they notice and make my |
| The new level of complexity in your financial life | | | | recommendations to my client who then makes his or |
| requires a professional. What then? Where do you | | | | her decision. |
| turn? | | | | I am not a tax accountant myself, but as a former |
| Most of us simply ask around among friends, | | | | Controller I have enough tax knowledge to have an |
| acquaintances or business associates. And that's fine. | | | | intelligent conversation about the subject matter and |
| You may find a tax preparer who is perfect for you | | | | ask the right questions. The same goes for the field of |
| that way. But tax law is a very big field and you may | | | | business law. It's part of the job of a Controller to |
| need expertise your friends don't need. While they are | | | | surround himself with competent advisers in those |
| happy with their tax accountant, he or she may not be | | | | areas. |
| the best fit for you. | | | | It's not enough to say - "you should always hire a |
| In most cases an average person actually doesn't | | | | CPA". One CPA is not equal to another. |
| know whether their tax preparer is good or not. We | | | | The title itself, although very important, isn't enough. It's |
| simply don't have the knowledge to test their level of | | | | as if you said to someone - "You want your teeth |
| skill. | | | | fixed? You have to go to a dentist". That's obvious. but |
| Selecting a Tax Preparer | | | | the range of skill, professionalism, experience and |
| Selecting the right tax preparer is not much different | | | | personal integrity varies among CPAs as it does |
| from selecting the right bookkeeper for your business. | | | | among members of any other profession. |
| Unless you are an accountant yourself, you will not | | | | Time Will Tell... |
| know how to do it. You may be able to find the right | | | | For me, the best test of quality of service is time. If |
| person from the point of view of work ethic, | | | | someone has gained a solid professional reputation |
| personality, etc, but the core of the selection process is | | | | among his or her peers over a period of time, I can be |
| aimed at finding out whether they are capable of doing | | | | reasonably sure that I can safely recommend them to |
| the job. How can anyone effectively do that unless | | | | my clients. The only other ingredients of my client's final |
| they know the field as well as or better than the | | | | decision may be personality and style. |
| person they are interviewing? | | | | |