What to Look for in a CPA

"We are often asked what a business should look for when hiring a Certified Public Accountant."

Our answer is: Someone who knows your industry! Most accountants can put together a financial statement or tax return, but what a business realty needs is someone who knows his or her business inside and out.

Below are some of the services you should expect from your accountant:

Financial Statement Preparation. You should receive a timely and accurate portrait of your practice and its financial results. You should see the results for the month just ended, the cumulative year to date, comparisons with the prior year, and also comparisons with the years financial budget. irreliness and accuracy should be the key.

Tax Preparation and Tax Planning. Not only should your accountant prepare your tax return, but he or she should advise you on ways to save on taxes before the end of the year. We call this tax planning, and in some ways, we feel it is more important than the actual tax preparation itself.

Budgets/Projections. It is very important for every business to plan for the future, and one of the best ways is through a financial budget. Done prior to the coming year, a budget is a great way to not only set goals for you and your staff, but also to help recognize important financial trends and variances.

Management Consulting. This is a key to making your business more profitable and helping you achieve your goals. Your accountant should be able to consult with you on all aspects of your practice, including financial, marketing, personnel, and customer service.

If you are looking for an accountant to help you with the purchase, sale, or start-up of a new practice, here is what you should expect:

Business Appraisals. Your accountant should be aware of what valuation methods are used in the industry, and what to look for in assessing what a business value really is.

New Business. Your accountant should provide you checklists and manuals to help get you started. He or she should also help you get financing to get the business off the ground, as well as assist you with all governmental requirements and help you set up pricing, marketing and personnel structures.

Purchase and Sale Consulting. If your accountant is assisting you with closing the transaction, he or she should help you determine whether the other party is a willing buyer/seller, as well as advise on the allocation of the final purchase price to maximize tax benefits.