How to choose a CPA

Choosing your first accountant or changing your existing relationship is an important decision and you need to take time to be sure the CPA you choose will be able to meet your current needs as well as those you may have in the future.

Your first step is to take a hard look at your business to determine your needs now and potential needs you may have in the future. Now that you have an idea of what help you need, you need to assess what capabilities your CPA firm should have. Not every accounting firm has the same skills, experience or services. You should examine the three "E": Entity, Expertise, and Experience.

Entity. Can a sole practitioner handle all your needs or do you need a firm that has specialists, tax specialist, international specialist, auditors, etc. If you need a larger firm, what size firm do you need? They come in small, medium and extra large. Here you should balance your needs with their fees, location, personalities, Expertise, and Experience.

Expertise. How much expertise does the accounting firm have in your specific areas of need? Do they have CPAs with credentials in those areas? Do they participate in societies, committees or other external organizations that focus on your issues? For example, do they sit on a committee of the AICPA (American Institute of Certified Public Accountants)? Ask for client references that have the same needs.

Experience. How long have they been in business? Do they have a positive reputation in their community? How long has the specific CPA that will do your work been practicing? How many clients do they have? How many with needs similar to yours? How many clients do they have in your industry or related industries?

Ok, you know what you want, where do you look for the "right" CPA? The best method of choosing an accounting firm is to seek a referral from your other trusted advisors -- banker, lawyer, insurance agent, board members, or other business leaders. Be sure to tell them what you are looking for and ask for more than one reference. You can also contact the Illinois CPA Society. The Illinois CPA Society represents more than 25,000 Certified Public Accountants in Illinois.

How do you choose from those firms you interview? Look for them to distinguish themselves. A good way is to listen to the questions they ask. You will notice they may sound similar. A good indication of their ability to serve you well is their ability to stimulate you into dialog about your needs. Do they listen more or talk more than you? Here are some tips to help in the process.

SEVEN TIPS

1) Make sure the individual that will handle your firm is a CPA. A CPA has passed the CPA examination and is licensed to practice by the State of Illinois. An accountant has not passed this difficult examination of the skills and knowledge of accounting.

2) Can you work with the individual CPA? Do you like his/her personality? Are they open and honest?

3) Have they done a good job identifying ALL your needs? Do they listen well?

4) Ask for references in your industry. Make sure you talk with these references.

5) Make sure a Partner will work on your needs. Almost all CPA firms assign a Partner to a client but not all have Partners working on them. The Partners are the most experienced and knowledgeable people in the firm.

6) Make sure the CPA firm will treat you as one of their most important clients whether you are or not.

7) The more you know about the accounting and business issues facing your firm the better your relationship will be with your CPA. Make sure the firm you choose helps you learn by providing newsletters, seminars, etc.

Once you make a decision, be sure to reevaluate that decision annually. Have they lived up to your expectations?