Inside Small Business | Small Business & Home Business Marketing

What makes a good accountant?

Joe H Dike, CPA

The services of a good accountant can be invaluable to you or your small business. He or she should be able to help you find the way the through the maze of tax laws and provide the financial guidance you need to manage and grow your business.

While people tend to associate accountants with taxes, keeping you abreast of tax changes and doing your taxes are just a few of the services a good accountant should provide. Whether you’re wondering which business entity to form or trying to decide the best way to finance your business, a good accountant will be able to tell you how such a move would affect your taxes and/or your business’s growth.

There are many people who claim to be accountants but, what gives you some reassurance are the credentials they possess. In my opinion the most qualified are those individuals that are licensed CPA’s. While a Certified Public Accountant is always an accountant, not all accountants are CPAs.

To become a CPA, an accountant must take and pass a rigorous test administered by the American Institute of Certified Public Accountants. Accordingly, there are a number of accountants who never pass the CPA exam and though they can perform a variety of accounting tasks, they are not allowed to perform certain responsibilities that only a CPA can do, such as represent you in an IRS audit.

To name a few personal attributes, a good accountant should; be a good problem solver, give practical advice, communicate effectively, be approachable and ask the right questions. Asking the right questions will reveal to you what you need that you may not have known before.

The relationship is just as important as the skill and knowledge a good accountant possesses. You should do a little investigating as well as meet with a few accountants before you choose to whom you will want to reveal your most intimate financial information. Chances are you will form a relationship that will last a long time.

Here are a few things to consider when choosing a good accountant:

Length of time in business
A good accountant should be experienced and there is a good chance they will be if they have been in business for at least 10 years. Experience is important but staying abreast of tax changes, technology and current business practices is just as important. Check and see if they have written any articles or given any seminars. Talk to some of their other clients if possible.

Knowledgeable of current tax law and technology
Nowadays everybody has a web-site. Get online and review their web-site. If they don’t have a web-site they may not be up on technology. Advances in technology and being aware of them will definitely help them as well as you.

What credentials attained
Credentials or financial designations are evidence that the accountant is continuing his education and up on new laws and trends. Check to see if there are letters after their name and check-out what they mean. Type “financial designations�? in Google and do a little investigating.

Adequate help during tax season
Just a important as credentials and maintaining continuing professional education, if the accountant does not have adequate help during tax season, you may not get the help you need on a timely basis. Make sure your prospective accountant has adequate help during tax season; It is not uncommon for accountants to work 10-12 hour days during tax season.

In addition to the above, more and more people are concerned about retirement and retirement planning. Many CPAs are getting into investment planning and advising. The advantages to finding and advisor that can help with taxes and investments are invaluable. Having one person to go to for all your financial needs could not only provide great peace of mind but give the edge you need to be successful in this fast paced world we live in today.

Bio:
Joe H Dike, CPA is a licensed CPA in the state of Texas and a 1984 graduate of East Texas State University (now Texas A & M at Texarkana). He is Certified Information Technology Professional (CITP), Certified Senior Advisor (CSA) and a Licensed Investment Representative. His practice is mostly small businesses, individuals and closely held corporations. He lives and works in New Boston, TX and is actively involved in his community and serves as a four term city councilman and an active member of his local First Baptist Church. You can learn more about him and his practice at www.joedikecpa.com.

           

Posted on Friday, December 15th, 2006 at 2:43 pm and is filed under Money/Finance, Small Business. You can follow any responses to this entry through the RSS 2.0 feed.