If you own a business, chances are at some point you will need to hire an accountant.  There are some things you need to consider when shopping for this person or firm.

Expertise 

Just like other fields, accountants specialize. Someone who only deals with start-up companies in the tech field may not have the knowledge necessary for a large manufacturing company, for example.  Ask about their other clients in your industry or field and size of business. Most accountants will readily explain if your needs are outside their field or beyond their capacity.  If so, ask for a referral to someone they know who might be better suited. 

Experience

How long have they been doing accounting?  You should shoot for someone with at least five years under their belt.  Working with a larger firm will give you more individuals to choose from, plus if the person assigned to you is short on experience, they will have someone senior to consult with. 

Background 

Ask about the actual degree of the person who will be working on your account.  You should also find out if they are licensed.  A Certified Public Accountant license is nice to have, but not necessarily a requirement.  Attorneys specializing in taxes should have a degree in taxes.  There are other degrees that might be relevant like an MBA that focused on tax-related issues. Find out what continuing education they participate in and how recent were the classes.  There are many talented people out there, but you need to choose someone in whom you have confidence. 

Audits 

Should you be audited, will the accountant represent you at the hearing and through the process?  If not, you may want to keep looking.  If so, will there be an additional fee for the service?  Will they also review previous tax returns and will there be a charge for that?  It might be a good idea to have copies with you at the time of the interview so the accountant has an idea of what they will be working with. 

Fees

Usually the fees are charged by the hour, but not necessarily.  If you are dealing with a large accounting firm, a more junior staff member may be charged at a lower fee.  Be sure you understand what the fee will cover and what it will not.  Bring home a printed copy of their schedule so you can compare prices from one accountant or firm to another.  Ask if there is anything that you, as the client, can do to reduce the amount of the charge. The more organized your paperwork, the less time the accountant will need to spend sifting through the receipts and income statements.

Local or Not

Some of this is personal preference.  If you need to look him or her in the eye each time you have a return to file, then yes, they should be local.  Also, some firms and people have offices in areas other than downtown (with high overhead costs).  Some may even work out of their homes.  Don’t rule out working electronically.  Scanning the documents and submitting them through email, Dropbox, or Google Docs can be more efficient.  Telephone or Skyping also can resolve questions easier than texting several times.

The ultimate conclusion is whether you are comfortable with the person or company you choose.  Do they answer your questions to your satisfaction without making your feel foolish or using too much technical jargon?  Do you trust their abilities to do a good job?  These are all things to consider as you find professionals to help you with financial issues.

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- The Capex Team