Taxpayers may ask why they should hire a CPA to assist with their tax returns and other business matters.

A Certified Public Accountant (CPA) is a highly qualified and experienced accountant who has passed a competitive examination, joining a selective group of certified accountants. In addition to passing the exam, CPAs have continuing education requirements that keep them current with changes in accounting rules and tax laws. CPAs commonly provide accounting, auditing, financial reporting and tax preparation services to clients that are beyond the capabilities and knowledge of most accountants.

CPAs are also trained to be objective and independent, have specific training and experience to provide financial and tax advice based on research and analysis. In fact, in many cases, the CPA must first research a client’s specific situation, acquiring certain knowledge and expertise applicable to that precise set of circumstances. With their training, experience and independence, CPAs provide their clients with objective and balanced advice that offers a more effective and useful perspective than other accountants and business advisors.

Taxpayers, particularly business owners, may attempt to handle many of their financial related matters without professional assistance. These matters include recordkeeping, accounting, financial reporting, tax return preparation and tax planning, developing accounting procedures and internal controls, starting or restructuring a business, valuing a business, selecting financial software for the business, choosing a retirement plan for the employees, making financial decisions and other critical financial issues. Given the importance and complexity of these issues, most business owners simply do not have the breadth of knowledge, financial skills or expertise to handle all of these matters. Trying to acquire the necessary skills and expertise would simply be impractical.

Furthermore, having the assistance of an independent minded CPA will provide a unique perspective to help the business owner(s) make better, more effective financial and general business decisions.

Note: Many professional tax preparers and practitioners are also CPAs, so it makes even more sense to seek the assistance of CPA for tax matters.

Selection Guide

The following factors should be considered in the selection of a CPA:

a) The first step is to is to assess the business’ current financial situation, including complexity of the accounting and tax matters, as well as the firm’s short- and long-term financial planning

b) Obtain a list of potential CPA firms from close business contacts, industry directories (i.e. CPAdirectory.com), trade publications and articles, Internet searches and other sources

c) From the public information available, determine which of the CPA firms found in Step b have the specific capabilities or expertise the business requires (as determined in Step a)

d) Determine a set of relevant questions from industry sources, then conduct interviews of the various CPA firms to gather data necessary for an informed selection

e) Evaluate the firms based on their compatibility with the firm’s financial situation and future plans

f) Key attributes of CPA firms to assess:

- specific knowledge and expertise

- depth of experience

- abreast of current laws, regulations and processes

- quality of decision-making skills

- objectivity and independence

- creativity in developing solutions

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