Choosing A CPA
Why Do You Need A CPA?
Certified Public Accountants (CPAs) act as advisers to
individuals, businesses, financial institutions, nonprofit
organizations and government agencies on a wide range
of financial matters. Today, many individuals and businesses
turn to CPAs for help with tax preparation, personal financial
planning, auditing services and advice on developing effective
accounting systems. Find a Texas CPA.
What Can A CPA Do For You?
CPAs are no longer just number crunchers and tax preparers,
they are business and financial strategists who help chart
the paths of businesses and individuals. Individuals turn
to their CPAs for tax and financial planning services,
investment advice, estate planning, and more.
Businesses are tapping CPAs to not only manage finances
and taxes, but also to determine profitable new product
lines, help diversify investments, and provide a variety
of other consulting and business services.
CPA vs. Non-CPA
Many people do not know how a CPA is different from a
bookkeeper or tax preparer. The CPA designation is one
of the most widely recognized and highly trusted professional
designations in the business world. CPAs are distinguished
from other finance professionals by stringent qualification
and licensing requirements.
Individuals have worked hard to obtain the CPA designation,
and they are committed to working even harder to deliver
the value that it conveys.
What qualifications should you look for when choosing
a CPA?
Before you select a CPA, make sure you consider the following
questions:
• Does the individual hold an active CPA license?
• Are your needs compatible with the CPA's personality
and communication style?
• Does the CPA have the experience you need?
It's important to establish a practitioner's credentials
before you retain his or her services. You need to feel
that this person has integrity and honesty before you will
trust him or her with your financial information. Be aware
that fee structures vary and that different types of practitioners
have different levels of training and experience.
Keep in mind that you are looking to establish a long-term
relationship. You want someone who will learn your business
inside and out, and who will become a trusted advisor on
major business and financial decisions and transactions.
Look not only for technical competence but also for interpersonal
and communication skills.
Membership in a professional association is also an important
qualification. Members of the Texas Society of CPAs are
governed by a stringent code of professional ethics. Also,
all CPA firms in Texas must undergo a comprehensive review
of their accounting and auditing practice every three years.
Defining your objectives and expectations will help you
ask the kind of specific questions necessary for finding
the CPA best suited to your needs. Think about the services
you will need not just today but further down the road.
How Do I Choose a CPA?
When looking for a CPA, consider the following:
• Ask your lawyer, banker, insurance agent, or investment
advisor for recommendations. Speak with colleagues in
your field of business about CPAs they know and trust.
• Develop some of your own plans and objectives before
you talk with a CPA. Gather information about business
and personal financial decisions under consideration
so you can ask specific questions.
• Make sure the CPA is licensed to practice in Texas. (See CPAVerify)
• Ask what professional organizations the CPA belongs
to and how active he or she is in those organizations.
Many of these organizations require adherence to technical
and professional standards, thereby helping to ensure
the quality of a CPA's services.
How can you get the most value from a CPA's
services?
• When it comes to working with a CPA, you are in control.
There are a variety of things you can do to get the
most value out of your time and money spent with a CPA.
• Before you even contact a CPA, be prepared with your
goals and objectives of what you want the CPA to do
for you. Have a list of questions and a clear idea of
what you want to accomplish.
• Before you meet with a CPA, gather all the documents
and information you think you may need - past tax returns,
financial statements, investment documents, business
plans - and take this information with you to the first
meeting.
• Keep your CPA up-to-date on what's happening in your
life. Are you getting married, divorced, having children,
needing to plan for your child's college education,
expanding a business, or giving the business to an heir?
You'd be surprised what life experiences can have a
significant impact on your tax liability and personal
financial goals.
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