Now’s The Time To Evaluate Your Relationship With Your Accountant
Businesses change and require specific expertise to evolve. Now’s the time to make sure you’re teamed up with accountants who help you thrive.
Well, friends, we made it to a new year once again! And while you’re probably still chugging right along at full speed, the start of 2022 is an excellent opportunity for you to think through your business relationships and evaluate what you want to keep and change moving forward. It’s not uncommon for me to sit across my desk from desperate business owners asking for our help to get them out of a serious tax jam. They stuck with their accountant for years out of a sense of loyalty or because they were too busy to make the switch, and now they’re paying for it dearly.
Accounting is a complicated and nuanced subject matter. The tax code is massive and complex for the layperson to understand, and that’s ok. I don’t understand car engines, so I take my Jeep to a professional. I already know what you’re thinking. “How do I find the right accountant for my business?” This is a difficult question to answer, but here are a few first steps that will help.
Look For Certification
Did you know that not all tax preparers are CPAs or Enrolled Agents? It’s true. The seasonal tax prep offices that pop up around town are not all staffed with highly trained tax professionals. That’s not to say they’ll automatically mess up your taxes, but the risk certainly is higher. Find a tax professional who is either a CPA or an Enrolled Agent.
Ask A Lot Of Questions
When you meet with an accountant, remember you are interviewing them, not the other way around. You need to make sure that anyone you hire has experience with the type of business you run and potentially the type of mess you’re in with the IRS. Most accountants are not experienced in IRS resolution.
Always Own Your Data
Some accountants use proprietary software, meaning that all of your tax information goes into their hands and into software you cant access. This might not seem like a problem until you decide to change accountants and don’t have access to years worth of critical tax details. Maintaining historical records of your business’ finances is essential. Make sure any accountant you hire allows you to maintain full access to your records.
Be Willing To Make A Change
If you’ve worked with the same accountant for years, it may feel like a breakup to move on to someone new. Just remember that your accountant is a professional, and your business is your livelihood. You are allowed to move on if you need to.