Here are some suggestions to help you find and evaluate a tax accountant/tax
preparer:
1. Ask around. Ask others in your profession. Anyone can pay for advertising,
but a satisfied client is always the best referral, but make sure that you
ask someone that you respect and has at least a little business and tax savvy.
2. Find somebody who is familiar with your business or industry. Don't expect
someone who specializes in service businesses to also be an expert in
manufacturing. Avoid the people who try to convey that they know everything
about everything. Everyone has areas of expertise. Try to find the person
who knows your business.
3. Ask for an interview. In most cases, s/he will be glad to give you an
hour (at no charge) to discuss your situation, assess your specific needs,
wants, and desires. At that time, you will want to ask at some of the following
questions...
A. How big is the firm? Am I just going to be a little frog in a big pond?
Just how important is my business to you?
B. Who exactly will be doing my work? You or somebody else? If I have problems
or questions, do I speak with you or am I shuffled off to another person?
C. Why do you want me for a client? (This one always throws 'em for a loop.)
If they stutter and stammer, you can bet that it's just for the money. But
if they tell you that your business would be a good mix for the firm, or
that they specialize in your business and are anxious to expand, or other
reasonable explanation, you at least have a fighting chance.
D. What is your experience and educational background? People always like
to talk about themselves. Give him/her a chance to spout off. See if
s/he gives you the information in a "matter of fact" fashion, or if
s/he is trying to put on a dog and pony show.
E. What are your continuing professional education (CPE) requirements,
and how many CPE hours do you normally take on an annual basis? If you're
not comfortable with the answer, ask to see his/her written CPE report
that is required to be filed with his/her professional organizations.
You don't have to be rude about it. You can just say, "I'm just curious
about your areas of CPE interest. Would you mind showing me
your written CPE report?"
F. What research material do you use? CCH? Research Institute? BNA? What
research do you subscribe to? If you find that the only research material
is a current copy of the Federal Tax Handbook, run, don't walk, to the nearest
exit. Taxes evolve from regulations and court cases.
Sometimes complicated problems arise that require deep research.
You don't want your tax geek to "give it his/her best shot." Being correct
is always best when dealing with the IRS.
G. If your return is audited, will the accountant represent you before the
IRS in examination on your behalf. Not with you, but instead of you. If the
accountant sources out the audit work, think twice before that you are
also present in an audit, think a third time. Potentially, the worst
situation in the world is both the accountant and client being present
at audit time. What will be the fee for any subsequent audit work?
H. And speaking of fees, find out what and how the accountant sets fees.
See if s/he will give you an estimate of your fees before you leave.
Find out about billing policies.
4. Once you are done with your questions, see if s/he has any questions for
you. If the accountant is established, s/he doesn't have to take any Tom,
Dick, or Harry that walks in the door. They may have some very pointed questions
for you. In fact, the more questions they ask the better. At least it shows
some form of interest.
5. And finally, select someone you are comfortable with. The person that
you finally select might be the very best tax technician, but if you are
not comfortable with him/her, you will hesitate to call and gleen information,
and you might not provide the information that s/he needs to do a good job
for you. If you like needlepoint, find out if s/he also likes needlepoint.
Find as much common ground as possible. Once you have determined (at least
to the best of your ability) technical competence, go with the comfort factor.
And don't be afraid to ask questions and challenge his/her position. When
challenged, if the best answer or explanation you receive is "trust me" or
"that's just the way it's done," be careful. Be very careful.
Tools