| Selecting a rock-solid Certified Public Accountant | | | | message and ask for a callback if the person is not in |
| (CPA) should be one of the first steps taken for | | | | the office. If they do not call you back within two or |
| anyone starting a small business. An accountant worth | | | | three business days, immediately cross them off your |
| her weight in ledgers will not only help you plan and | | | | list. Do not even consider interviewing an accountant if |
| prepare your business taxes, she can also advise you | | | | they do not promptly return your calls. |
| on key decisions that will help you start and manage | | | | 5. Conduct interviews - Plan to conduct at least five to |
| your small business. Selecting an accountant will likely | | | | 10 interviews to make an educated decision. Cover the |
| be one of the most important decisions you make as | | | | following questions during your interview: |
| a budding entrepreneur. | | | | - What services does the accountant offer? For |
| A good accountant can save your business thousands | | | | example, does she only provide tax preparation or |
| of dollars and save countless hours in your valuable | | | | complete bookkeeping, tax planning and preparation? |
| time. Conversely, a poor accountant's mistakes will eat | | | | - How long has the individual been a CPA? How many |
| into your profits, cause you ongoing, undue aggravation | | | | clients does she currently have? |
| and can often land you in the scrupulous crosshairs of | | | | - What are his specialties? Ask him to list his tax |
| the Internal Revenue Service. With these important | | | | strengths as well as areas upon which he continues to |
| factors on the line, how do you go about selecting an | | | | improve. |
| accountant, especially if you have never used one | | | | - How would the accountant rank herself in terms of |
| before? | | | | aggressiveness in looking for tax savings? Is she ultra |
| For starters, understand that the selection process will | | | | conservative or extremely aggressive? You will likely |
| take some time. If you are in a hurry to find an | | | | want an accountant somewhere in the middle with a |
| accountant, you will likely settle on the wrong individual. | | | | bias towards the aggressive side. |
| You should budget anywhere from a few days to a | | | | - What does he like best about his job? What does he |
| few weeks for your selection process. The actual | | | | like the least? |
| duration depends on the nature and complexity of your | | | | - How are fees structured and calculated? Does she |
| business as well as your schedule and candidate | | | | require a retainer for her services? If so, how much? |
| availability. When you are ready to get started, follow | | | | - What experience does the individual have providing |
| the steps below. | | | | tax assistance for businesses in your industry? |
| 1. Prepare a business plan - A business plan is a | | | | - Off the top of her head, ask the candidate to provide |
| roadmap for your business. At the highest level, a | | | | you two or three immediate ways you could improve |
| business plan defines your business strategy and | | | | your tax situation. This is a great question since it |
| projected financial direction. Having a business plan, | | | | quickly demonstrates the individual's experience and |
| even as a rough draft, is important since it will help | | | | how much she understands your business. |
| prospective accountants better understand the nature | | | | Review your interview notes - Take copious notes |
| of your business. | | | | during your interviews. These notes will come in handy |
| 2. Define your accounting requirements - What types | | | | when making your selection. After your interviews are |
| of assistance do you need from your accountant? Do | | | | complete, review your notes. Narrow prospective |
| you want just tax preparation or a complete package | | | | candidates to a short list of two or three. Wait a day. |
| including bookkeeping, tax and financial planning, tax | | | | Review your short list candidates and then make a |
| preparation and ongoing advice? By understanding | | | | final decision. |
| your business and background, a good accountant can | | | | Notify your candidates - First, contact your new |
| help you refine the services you need. | | | | accountant. Ask her what she needs from you in |
| 3. Make a list of prospective accountants - Begin your | | | | order to get started. Next, out of business courtesy, |
| list by talking to friends and colleagues. Referrals are | | | | call your other candidates and let them know you |
| always a good starting point. However do not | | | | selected a different accountant. Thank them for their |
| automatically choose an accountant simply because | | | | time. |
| your friend Joe uses him. Due diligence is key in this | | | | With a little time and structure you can be assured of |
| process. Use the internet and accounting associations | | | | selecting the best accountant for you and your |
| to help find quality candidates. | | | | business needs. With this decision made, you can now |
| 4. Make introduction calls - Call each candidate on your | | | | focus on helping your customers and building your |
| list. Introduce yourself and your business and ask them | | | | business! What is nice about this process is that you |
| if they are accepting new clients. If so, schedule a 30 | | | | can use a similar approach when evaluating other |
| minute interview. Send them your business plan for | | | | professional partners such as insurance agents, |
| review prior to the interview. Make sure to leave a | | | | lawyers, or general contractors. |