Sunday, July 12, 2009

Tips for Choosing an Accountant

By Chuck R Stewart

Attention all entrepreneurs! Are the bills past due? Do you know if youre in the red or the black? Are there receipts scattered around your desk? If this sounds like you, then you need to get a good Cincinnati CPA . But, how do you go about finding one you can trust? Even in a place like Cincinnati, for example, just flip through the yellow pages and under the heading of Cincinnati accountants you'll likely find a myriad of accountants with no way of knowing who's worth calling, and who's not. So, here's a handy guide to locating and choosing a good accountant.

Here's How:

1. Build a referral list: Identify at least five accountants by contacting your financial planner, banker, insurance agent, and industry association. Ask other business people about their accountants. Find out who they use and how satisfied they are with the services their accountant provides. If you don't get any worthy referrals in this manner, use the phone book and choose several accounting firms. When you call, ask for an accountant who specializes in small businesses. An accountant that usually handles big businesses will not give you the individualized attention and help you require. Use this information to edit your list of prospective accountants.

2. Prepare your questions: Call the accountants you've selected and ask to discuss their services. Find out the size of the company, their experience in your industry and qualifications. Ask them to send information on their billing policies and fees. Make sure your accountant is fully qualified"for example as a certified or chartered accountant. Keep in mind that an accountant should be able to do more than prepare taxes. They should be able to advise and guide you in steering your business now and in the upcoming year. Use this first contact information to choose two or three accountants to interview in person.

3. Interview candidates: When you first meet a prospective accountant, you will know soon enough if you see eye-to-eye. It is important to develop a good relationship and know that your accounts are being handled by someone you trust. There's nothing like personal interaction for determining how well you might work with another person. Besides assessing the accountant's knowledge, see how comfortable you are with them and how well the two of you communicate with each other. Find out if they will handle your account personally or if it is handled by an employee. Discuss what other services the accountant provides. Ask to speak to existing clients before signing up. Any respectable accounting firm should be happy to arrange this. You should contact no less than three accountants in person and settle on which one best meets your requirements.

4. Make your choice: Base your decision on the best answers to your questions and the fact that they offer additional services to provide as your business grows or meet upcoming challenges. Determine if they are approachable yet professional. For small businesses, the best accounting firms are also likely to be smaller in size. They will understand what it takes to manage a small operation and will have the resources and time you require to run your finances effectively. Make sure your accountant will keep in touch with your business"not just at year end.

Of all the advisers you are likely to encounter when running a small business, a good accountant is perhaps the most indispensable one to have. After all, an accountant isn't just a tax preparer"they can help you build a blueprint for the future of your business. Having your accounts in order and being timely with payments will allow you to concentrate on building the business.

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