Looking to hire a Certified Public Accounting (CPA) firm for your small business? Going the CPA path might make more sense than hiring any accountant. The problem is, how do you know which CPA firm is right for you? Here are some of the factors to consider when selecting a small business CPA firm.
1. Does the company specialize in serving small businesses like yours?
A CPA firm that specializes in serving small businesses is likely to understand and address the unique challenges of small businesses more effectively than one that doesn’t. Also, it is likely to be efficient and agile in meeting your needs, as its services, processes, and operations are designed to cater to small businesses.
2. Does the company have any customers in your industry?
A CPA firm that specializes in serving small businesses in their industry is likely to be more familiar with their industry-specific accounting principles and tax laws than a CPA that serves clients in any and all industries. This industry experience makes him an effective and informed business advisor for better business decision making.
3. Does the company offer all of the CPA services that you currently need or will need in the near future?
As your business grows, you’ll need a CPA firm that provides more than just accounting, tax, payroll, and bookkeeping services. You’ll need a company that can also be your business consultant, part-time financial manager, and personal financial planner. Hire one that is a good fit for your current needs but also has the capacity to serve you as you expand.
4. Does the firm have experience in areas relevant to your needs?
Understand your needs first before searching for a solution. For example, if your in-house staff handles your accounting and bookkeeping, but you need outside help with certain types of taxes, then hire a CPA firm that is an expert in those types of taxes, preferably in your industry. If you want to set up a retirement plan for yourself and/or your employees, hire a CPA firm that also provides financial advisory services.
5. What accounting and finance credentials and licenses do company employees have?
Most of the highly recognized professional credentials in accounting and finance, such as CPA, CFP, CFA, PFS, EA, etc., have continuing education requirements and compliance with their standards to ensure that the professional is not only knowledgeable about the subject but also also that their knowledge is updated. It is always advisable to hire professionals with the highest professional credentials in the field of your needs.
6. Who will actually service your account?
A typical CPA firm has accounting staff ranging from the most junior staff accountant to the most senior firm partner. Your ranks are largely determined based on your level of knowledge and experience. Ask your CPA firm who will be your single point of contact for your account and who else will be working on your engagement.
7. What is the company’s customer call-back policy?
One of the main reasons to hire a small local CPA firm is ease of access. Ask if they have a written policy of returning customers’ calls within 24 hours and handling their queries and resolving them within 72 hours. Also, find out if they will be available over the weekend for the occasional urgent situation.
8. What fees will the company charge?
Depending on the nature and scope of your commitment, a CPA firm may quote you an hourly rate or a flat rate. Ask them to explain why their rate type (hourly or flat) is appropriate for your situation. Also, ask if there is anything you can do on your end to help lower the fees.
9. Is the business also qualified to prepare personal tax returns and provide other personal finance services, if needed?
Most small businesses are continuous-flow business entities in which business profits and losses flow through your personal tax returns at the end of the year. Therefore, as a small business owner, you need a CPA firm that has experts not only in accounting and taxes, but also in personal finance.
10. Does the firm have a strong referral network for your other professional service needs?
For many small businesses, your CPA is your most trusted source for many great referrals. You should be able to count on your CPA for trusted references for your other professional services needs, such as legal, financial, banking, investment, and insurance services. Once you hire the right CPA firm, it should become your go-to source for other trusted professionals.