Questions to Ask Your Accountant

The relationship between a micro business owner and accountant is very important. As a new business owner, you have a lot to learn so seek out an accountant with the heart of a teacher. Interview several accountants looking for someone that you understand. If you leave an interview more confused than you entered, keep looking. You should leave the meeting saying, “I learned a lot.”

Grill your CPA

Ask an accountant these questions:

• Tell me about your small business clients? Are the similar in size and industry? Any teenagers for client?

• Could you share 2-3 names as referrals

• How much do you charge?

• How often an I billed?

• What is included in your services?

• What is NOT included?

• How often will we meet? Where?

• What do I need to bring to our meetings?

• Why is bookkeeping important?

• Explain the reports that I will receive from you

Test your CPA

A good accountant will explain difficult subjects in a clear, understandable way. Use a few test questions to see if your accountant communicates well.

• What is depreciation? Why can’t I deduct the cost of equipment I the year I purchased it? (you can and the accountant should explain something called a section 179 deduction)

• What are the advantages of Limited Liability Incorporation? What does limited liability mean? When should I consider forming an LLC?

Carol Topp, CPA