Do you know what’s a big challenge for 40% of business owners? Taxes.

Tax law is confusing, and not understanding taxes can get you in trouble with the IRS and state tax authorities. You don’t want to get hit with fines, penalties, or worse for making mistakes.

That’s why you need to find the best CPA you can. You could find a CPA firm anywhere in the country to work with, but you want to work with someone local. They understand the local laws, challenges, and people to contact if you need help with anything.

Read on to find out how you can find a local CPA for your business.

What Financial Services Do You Need?

Before you open up Google to search and you can search for a CPA. You might start off a search with a bookkeeper or accountant, thinking that they all mean the same thing.

There are some big differences between them all, and you should know how they do. It’ll impact how you approach your business finances.

A bookkeeper is largely an administrative position. They manage invoices, update your accounting software, categorize your expenses, and help you manage your cash flow. They may help you with collections for late-paying customers as well.

An accountant attended school and majored in accounting or business. An accountant isn’t registered as a Certified Public Accountant, nor are they registered with the state board of accountants. They can still handle your taxes, and advise you on your business finances.

A CPA is an accountant that went through the rigorous process to become a CPA. They need to pass an exam and qualify under the rules of the state licensing board.

The CPA designation offers business owners a lot more than the ability to do taxes. They can file your taxes for you. The advantage that CPAs have is that they can represent you to the IRS.

CPAs, Enrolled Agents, and tax attorneys can represent you. They can work on your behalf if you face an audit or you need to handle tax debt.  

How to Find the Right CPA for You

Now, you can do your search for “CPA near me.” You’ll come up with a huge array of options. Here are a handful of tips to help you find the right one.

You should understand how CPAs typically charge. As a business owner, you’re aware of your budget and how much you can spend on a CPA.

CPAs use a few different pricing models. Some CPAs charge a flat rate for tax returns and other standard services. The flat rate assumes that you have a straightforward tax return. If you have something like two Schedule Cs because you have a couple of sources of income, then you may be charged more.

Another way a CPA charges clients is through an hourly rate. This can be anywhere from $65-$150 an hour.

CPAs also charge clients based on the number of forms needed to complete tax returns. That enables CPAs to charge fairly. A corporation with many long, complex forms will pay more than a self-employed person with one source of income.

The CPA’s Process

How does the CPA approach taxes? Do they do taxes on their own or do they have a team to work on your tax returns?

Every CPA has a process to do taxes for their clients. You want to make sure that your CPA has a process in place to review your taxes to make sure they’re accurate. That will prevent your returns from getting audited.

Experience

You want to work with a CPA that has a track record of success. You should also find out if the CPA has experience in your industry.

Some industries like ecommerce have complicated tax issues because they may have to collect state taxes from their clients.

Reviews and Testimonials

What’s it like to work with them? Some CPAs have a reputation for getting the job done but having a tough personality.

As you look for a local CPA, check the reviews and testimonials from past clients. You’ll quickly learn the drawbacks and advantages to work with a particular CPA.

Ask for an In-Person Meeting

Once you narrow down your list of CPAs is to schedule an in-person meeting with them. You have the opportunity to see their working environment.

It’s helpful to note if they are organized or not. A sloppy or unorganized office could be how they approach their work.

Bring a list of questions to that meeting. These are the incredibly important questions that you need to ask to understand the costs, and how they work.

Find out if they’ll represent you in an audit. Some CPAs will represent you but charge you even if there was an error on their part.

Share your vision of the business with the CPA. For example, if you’re planning to export goods or work with clients internationally, your CPA should be able to work with you. That ensures that you have a long-term relationship with your CPA.

Check their availability after tax season. You may need to make an important financial decision and need their input. You don’t want to be left to make that decision alone.

Find the Best CPA for Your Business

You can’t afford to make mistakes with your business taxes. You need to hand them off to a CPA.

Finding the best CPA in your area does take a little bit of work, but you’ll end up with someone who understands your business. They know your industry, how to minimize your tax bill, and ensure your taxes are accurate and audit-proof.

Do you want more money tips for your business? Check out the Business section of this site.