Choosing a CPA
I'm a firm believer in the idea that a business, especially a small one, should have a CPA as an advisor right from the start, even before an attorney in many cases. But two of the criteria I would use for picking a CPA have nothing to do with money, and everything to do with the business owner's personality.
My first criteria is: "how risk adverse is the business owner?" Huge parts of the Internet Revenue Code are gray areas, and tax advising and preparation are an art as much as a science. Some people are very tax risk adverse. The idea of an IRS audit is up there with death among the "things most dreaded."
Other people want, and are emotionally ready to handle, pushing those gray areas to the limit. They figure if they are audited once in 10 years, and 50% of their deductions are disallowed, they are still way ahead of the game.
Of course most people fall in the middle of the bell curve, and most CPAs can operate in a range of risk levels. But knowing yourself and communicating that to prospective CPAs will help you find not only a good CPA, but one you will be comfortable with, and utilize effectively for years.
Another thing to investigate, although it's difficult to get a good answer from a professional who is trying to win your business is: Are you a self reminder when it comes to taxes? Do you have all of your papers together by February, and file shortly thereafter? Or do the words "April 15th" mean little or nothing to do you, and you need someone to push you to get taxes done and filed.
A CPA with a good system for following up on returns would be beneficial to you if you fit in the second category. Sometimes, but not always, a CPA with a staff to help with the reminding and nudging is good for this purpose.
In any event, take the time to interview a few CPAs. You want to keep as much of the money that comes in the door as you can. And the CPA is the one to help you do that.
