When it comes to considering a tax firm, you may find yourself struggling to come up with what questions to ask, which services to consider, and how to determine what are the appropriate fees. Here are some key considerations to keep in mind as you’re going through the process:
- What Services Do They Offer?
Your search for a CPA Firm may arise because of a specific need, but since you’re going through the process of vetting firms already, you should take this time to get a better understanding of all the services offered. Your personal and/or business needs may change, resulting in the need for additional services.
- Fees
It is very important to get a full understanding of how the firm charges fees. Are they charging you each time they speak with you? Do they only charge for the services they perform? Having a clear understanding of this at the onset will be hugely beneficial as you’re budgeting for the cost.
- Credentials and Certifications
There are some firms that can help with the tax advising and planning side, but depending on the level of sophistication needed for your personal and business matters, it may make sense to ensure that the firm has Certified Public Accountants (CPAs) and, if necessary, Master’s in Taxation (MT).
- Do You Feel Comfortable with the Team?
You may be wondering why this matters. Truth is that it matters A LOT! You’re sharing your personal finances and relevant information about your business with this person. You want to make sure you’re doing so with someone who is not only capable, but someone you trust.
- Accessibility
How quickly do you get a response? This is important, especially during peak season for CPA Firms. If your point person isn’t able to take your call, do you have other points of contact on the team?
- Ease of Working with Your Other Service Partners
This one is often overlooked or understated. Tying this in with number 4 above, your tax advisor should definitely be someone you trust since this person will very likely be interacting very closely with your other service providers, such as your lawyers, money managers, and business partners.
- Comprehensive Planning
This may not be a need on day one, but whether the services needed are for your personal or business needs, you may want to consider a firm that has the ability to not only prepare your returns, but also provide tax planning solutions and strategies for the future.
- Versatility
Although this may not be a requirement, it would be helpful to have firms that specialize in certain services (i.e. forensic accounting) or have expertise in a specific industry, such as manufacturing or industrials. Again, this may not be a dealbreaker in your decision-making but it could be a huge plus, especially if your circumstances require specific needs.
- Access to Other Services Providers
This one is also often overlooked as a key consideration when interviewing CPA Firms. When you think about your core team of service providers, your CPA is definitely on that list. As you’re considering a law firm or money manager, it would be hugely beneficial for the CPA Firm to have a robust network of lawyers and financial advisors, insurance providers, and other service providers that they could refer to you.
- Successors
The harsh reality is that nothing lasts forever. People move onto other firms, some retire, and other circumstances may arise that may result in a change to your primary point of contact. Rather than starting the process all over again, it would be a huge advantage to you to ensure that there is a successor in place working alongside your point of contact for continuity, and of course, familiarity.