How to find a Good CPA for your taxes?
Hiring the right Certified Public Accountant (CPA) can be the difference between a simple and painless tax season or a messy, time consuming nightmare. A qualified CPA will prepare your taxes accurately, maximized deductions and minimized your tax liabilities. There are so many CPAs, but how do you pick one you can trust and that’s a good fit for your financial needs?
In this guide, we break down how to find a good CPA for your taxes, what to look for in a tax professional and how a tax professional can help with the stress of tax season.
1. Understand Why You Need a CPA
Before you know how to find the right CPA, you need to know why you might need one in the first place.
CPAs have specialized expertise in things from business taxes to individual returns, and they do offer expert advice in tax planning and financial strategy. The help of a skilled CPA can keep you in the tax laws, save you from penalties and even give you money back through the right deductions yet the right credits. A CPA is invaluable if your tax situation is complex (e.g., own a lot of property, run a business, have large investments).
2. Get Recommendations and Referrals
A good way is to ask people you trust, who have had the same experience, for recommendations. Your friends, family or colleagues who have worked with a CPA could turn out to be very helpful.
You can also ask financial advisors, attorneys or business consultants to refer you. CPAs and they often work with a CPA and can refer you to someone that fits what you need.
3. Reviews and Ratings Research Online
Personal referrals are good, but it’s also important to look up online reviews and ratings for CPAs before starting. Yelp, Google Reviews, and even the social media platforms can tell you how a CPA is being perceived.
Ask for CPAs with positive feedback, but read through the comments to see which ones mention their responsiveness, professionalism and attention to detail especially well. Remember that a handful of negative reviews might not be the end of the world, but poor service, bad communication, etc. should be seen as a red flag.
4. Licensing Credentials Verification
Finally, when you do finally hire a CPA it’s imperative you verify their credentials. In order to become a CPA, an individual must take and pass a very rigorous exam and must meet state specific education and experience requirements. NASBA or a state’s board of accountancy will confirm if a CPA holds a license.
Make sure the CPA you choose has the right licensing and credentials to deal with your tax problem. So some CPAs may have other certifications like Personal Financial Specialist (PFS) or Accredited in Business Valuation (ABV) if they’re helpful to you because you have a specialized financial need.
5. Assess Their Tax Experience
As such, it is important to hire a CPA that specializes in handling tax related issues like yours. If you are a small business owner you want a CPA not a tax filer. You want someone who knows business tax laws and can do the bookkeeping, payroll and tax filings. Similarly, if you have, say, a few investments or a couple of rental properties, you want a CPA that’s geared towards that.
Don’t be afraid to ask them how they have handled cases like yours and if they can provide example of how they have worked with clients similar to yours. You will get a better idea of their expertise.
6. Ask About Their Fees
Hiring a professional is always a factor of cost and CPAs can charge in different ways. Some charge by the hour and others base their fee off the complexity of your tax return.
When talking about fees make sure to ask what is included and if there is additional cost that would come later on. Get multiple quotes from CPAs, but not the cheapest price will always be the best. I’ve found that a more expensive, experienced CPA can save you more in the long run by maximizing your deductions and offering advice on your finances that can ultimately save you more money.
7. Check Availability and Responsiveness.
Tax preparation can be complicated due to the many moving parts if your financial situation is involved. That’s why it is important to hire a CPA that is available when you want them and answers your questions quickly.
In your initial conversations, make a note of how fast they reply to email or phone calls. Good CPA will be communicative, will explain you how the tax process works and will answer on all questions if you have. They may be too busy with other things, if they take too long to reply and don’t seem concerned about your issues at hand.
8. They Should Stay Up to Date on Tax Laws.
Tax laws always change and your CPA has to stay up to date on the latest regulations and deductions. A good CPA will fill you in on new laws and make certain that you maximize the tax breaks to which you are entitled.
When looking for a CPA, ask potential CPAs how they keep up to date on tax regulations. CPAs often take continuing education programs or join professional organizations such as the American Institute of CPAs (AICPA), which offers ongoing training and resources.
9. Book an Initial Consultation
After you’ve come up with a few options, schedule an initial consultation with CPAs you’re considering. Most CPAs will give you a free consultation so that you can talk to them about your tax situation, ask questions, and get a feel for what they like to communicate.
This is also an opportunity to assess whether you believe you would be comfortable working with the CPA over time. Think about how capable they are of clarifying complex tax matters in simple terms; and, if they can notify you if there is any possibility that you may owe more than you calculated.
10. Check availability for ongoing tax planning.
A CPA will do a great deal more than just tax preparation. A good CPA can do tax planning on your behalf for the year so that you can make strategic decisions that minimize your tax burden and ultimately enhance your overall financial well being.
If you need something more than tax filing help, ask about their availability for ongoing tax planning services. Such advice could include things like estimated taxes, retirement contributions, and long term strategies.
11. Ask for Client References
If you’re really considering hiring a CPA, ask for references, and call a few of those people. If a reputable CPA can’t give references who will vouch for his work, he shouldn’t. Ask these references how satisfied they were with the CPA, how the CPA responded and whether there were any problems.
12. Check Their Specialization in Your Specific Industry
Hiring a CPA with particular industry experience to a business or job where you are specialized can be beneficial. Say a real estate agent, or a CPA who deals with real estate agents, or medical professionals, or freelancers, he or she will have an edge understanding the nuances when it comes to taxes in your space.
During your search, also look up the industries they normally work with and what are they going through in your industry? A big advantage when it comes to tax season can be their familiarity with deductions or regulations in the industry.
Conclusion
A good CPA for your taxes can be hard to find, but it’s worth a little effort to make sure your financial affairs are being handled properly. Looking for recommendations, checking the credentials and experience of the CPA will help you find someone who not only does your taxes correctly but also give you valuable advice about financial planning and tax strategies.
The right CPA is not someone who will fill out your tax forms, that is the least they need to do; they are a trusted advisor who can help you make informed decisions when it comes to your finances.
If you are looking for a reliable CPA, then you can contact us.
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