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View Full Version : Bad Accounting History - Advice Welcome



boisemarketer
01-05-2011, 10:14 AM
What are some interview/probing questions to discover how verse your accountant is?

Are there any red flags which, after spotting, I should run for the door?

Having a rough run at accountants, I'm on the hunt for a new one. I've done the close family friend bit, and that didn't end well. I've tried doing my own taxes using software, this didn't end well.

I'm far more comfortable with my current accountant, but I want someone who is:
1) Aggressive - Having thorough understanding of all deductions allowed.
2) Current - It goes without saying they need to be current on business tax code.
3) Savvy - Understands asset structuring and using multiple business entities.

Any advice would be greatly appreciated. Thank you in advance!

Evan
01-05-2011, 11:45 AM
I'm assuming you're looking for more of an accountant for a professional relationship, and not somebody on staff. Your best way is to find a local CPA who understands your business type. Most CPAs are not "specialists" in the sense that the deal exclusively with tax, or exclusively with audits, but are generalists, and have a wide variety of industries they serve.

I think what's most important is that you communicate your objectives with them. Aggressive isn't always the best route to go, and usually leads to red flags and audits. Call around and see who you can find :)

boisemarketer
01-06-2011, 10:28 AM
That is good old common sense advice. Thank you for the response.

After having an accountant come and present to my partners and I yesterday, I'm confident he is going to be the one we work with.

jamesray50
01-08-2011, 07:31 PM
Ask for recommendations or referrals too.

ChrisHeggem
01-27-2011, 12:34 PM
Referrals and recommendations are the way to go. People can say almost anything on a Web site or in the yellow pages. Ask your friends and colleagues for a recommendation. That's usually the best route.

FidelityAccounting
04-30-2011, 01:14 PM
Often times finding a certified accountant with many clients in your market will result in you benefiting from his/her experience with the other businesses as well. An accountant with many clients will have inside industry knowledge of marketing and other business strategies other businesses use.

greenoak
04-30-2011, 03:30 PM
we always want a cpa....and have a good one.....dh wants that on his tax return....we do a lotof the work also....but the cpa is there at the end...

lccglobals
06-02-2011, 08:50 AM
You already have taken most possible action required, you can also look around your friends, on job posting sites or social media sites for your best choice. Best of luck.

tylerhutchinson
06-02-2011, 04:37 PM
Best way is to get references and call them all! That way you get other peoples opinions. Much more valuable then their word or their resume.

CakeIO
07-05-2011, 06:39 PM
I had a horrible experience with a CPA once. The guy has been in this business for over 40 years and had a nice office in one of the skyscrapers downtown, so I thought he'd be perfect, he has experience and has "stuff" to prove his success, he must be good. After speaking to him on the phone he asked me to come in and chat for a bit. In a couple of days I did. He was great, he schooled me on everything from incorporating benefits and what he does and how things are done. Keep in mind I had no idea what I was doing business wise at that point. We spent about an hour and a half in his office and the guy sounded like an excellent choice but I sensed a little bit of arrogance in him, a bit of "I know everything and you listen to me boy" attitude. I could deal with that if the guy was worth it.

A few weeks later I received a bill from him for $300+. Said it was for an hour and a half of consulting. I couldn't believe this, I was never told I was getting charged for it, he just told me to come in and chat for a bit, so we could meet. I tried calling him a few times but he was out on vacation so I left a voice mail. After he got back he never called me so I called him again a week later and he answered, I proceded to explain to him that I was not aware that I was getting charged for that time and was under impression that we were just going to meet. He just went off the cliff, started yelling at me, saying "what do you think, I did all that fo free?", I asked him to wave this meeting fee as, like I said before, I didn't know I was getting charged. He just screamed at me saying "Fine, forget it. I don't want you as a client. Never call back here again."

So yeah, the morral of the story is, before you hire someone, make sure their marbles are screwed on tight even if they do have decades of experience. Sometimes that experience is what makes them fall of the wagon prematurely.

Evan
07-08-2011, 02:26 PM
I had a horrible experience with a CPA once. The guy has been in this business for over 40 years and had a nice office in one of the skyscrapers downtown, so I thought he'd be perfect, he has experience and has "stuff" to prove his success, he must be good. After speaking to him on the phone he asked me to come in and chat for a bit. In a couple of days I did. He was great...

A few weeks later I received a bill from him for $300+. Said it was for an hour and a half of consulting. I couldn't believe this, I was never told I was getting charged for it, he just told me to come in and chat for a bit, so we could meet.

Would you assume a consultation is free? Generally they aren't, unless they specify a "FREE Consultation" which is common with some professional practices that want to take in anything with a pulse to drum up the bottom line. As he was well established, these sort of professionals very much can be selective of their clientele, and generally will charge for all time. Send them an e-mail asking a general question? Expect to pay.

Consultations work a bit differently than other sort of arrangements, as there is no tangible product. If you're, as an example, having your tax return prepared... there is an assumption that any questions related to that specific return would probably be answered at no cost as it is built into the cost of the return. But if you start asking about "next year", or other tax planning, then you're asking for more than just what is offered and can be charged for the service.

I'd never assume a consultation is free, and they rarely are. Legal consultations sometimes will be, as they factor that time into their fee arrangements for what you need. As attorneys can charge contingent fees based on your success and CPA's cannot, they can get away with this.

I don't blame the CPA in this case for the mistake, though I do think it was a mutual misunderstanding. I generally don't expect to go to a professional service provider and ask what I should do, and then say "well, it's my first visit -- why would I have to pay?" As, on my second visit I could equally say "Well, I'm a recurring customer, cut me some slack, why should I have to pay?"

Loyalty in itself isn't going to pay bills, especially when there is a cost associated with your time.

CakeIO
08-10-2011, 06:12 PM
Would you assume a consultation is free?

Hehe, yeah, I actually did. Because an attorney I was working with said, "here I have a CPA friend that you should meet, let take a walk I'll introduce you". So I was like, OK, sure let's at least meet. That meet turned into a long visit, but I thought he was just being friendly.

I, as a web developer and SEO, have people asking me for advise all the time, and do take a bunch of my time but I never charge them. Maybe I should start. :)