How to Hire a CPA
Hire a CPA Framingham MA
Businesses quickly get complex once they start growing and at some point, you might want to let go and learn to trust other people to handle some parts of your business. When you feel like you are losing track of your finances, an accountant; and not just any accountant but a Certified Public Accountant can help you get things back on track. CPAs are basically accountants who got through a notoriously difficult licensing examination that may vary from state to state.
While an accountant may fulfill all the accounting needs in your business, CPA services can come in handy in some specific circumstances. CPAs are licensed by a state and are current with not only all the states but also the federal tax laws. And also, in order to maintain their licenses, they must comply with continuing education requirements. But, perhaps the biggest reason why you should hire a CPA is that they are eligible to represent you in an audit before the IRS, while an accountant is not. So how do you know how to hire a good one for your business? Read on to find out how.
Identify your needs before hiring
Your business may have specific accounting needs such as processing your sales invoices and account payables, do taxes or payroll or even create your financial statements and budgets. Before you begin the hiring process, come up with a list that both you and your business needs including what you might need in the future. This will help you to find the right CPA who can handle it all.
Hire an accountant who understands your business needs
Open communication with your CPA is very important. If you are hiring an external CPA firm or even one who usually outsource work to a third party, they have to understand your needs and that of your business before you decide to work with them. This applies even if you just need them to do your taxes.
Your business may need their availability since it may be one of those businesses that need an accountant’s services all year-round instead of waiting for the next tax season. Also, if you have several entities under your name, you may need an accountant with the ability to coordinate as well as track money moving between those entities. If your CPA doesn’t understand needs as well as others, there are too many things that could go wrong.
Consider their qualifications
There is a lot more to accounting than just dealing with numbers, and this applies mostly to CPA’s. CPA’s have a deep understanding of complex financial concepts as well as tax code which can be hard to break down into simpler terms. Therefore, it’s good to sometimes look beyond the resume and consider other qualifications such as communication.
Another qualification to consider is a CPA’s experience in working with different clients. You would definitely want an accountant who understands your type of business. Therefore, hire a CPA who has worked with other businesses similar to yours and knows the ins and outs of your industry.
Experience with the IRS
IRS audits can be expensive, time-consuming and stressful, therefore, ensure you hire a CPA who has experience with dealing with the IRS. They can give you advice and take you through the hiring process and also help keep you off the watchful eye of the government by ensuring you do not violate any tax laws afterward.
Also, if you can, hire a CPA that offers audit insurance. Audit insurance covers fees needed if your business has to respond to an official audit, review, inquiry or investigation by a tax department. If you find an accountant with this cover, it means you won’t incur any extra charges for the amount of work they will cover during the entire auditing process.