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:
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Tell me about your small business clients? Are they similar in size and industry? Any teenagers for clients?
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Could you share 2-3 names as referrals?
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How much do you charge?
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How often am I billed?
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What is included in your services?
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What is NOT included?
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How often will we meet? Where?
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What do I need to bring to our meetings?
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Why is bookkeeping important?
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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 like these to see if your accountant communicates well.
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What is depreciation? Why can’t I deduct the cost of equipment in the year I purchased it? (You can, and the accountant should explain something called a section 179 deduction)
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What are the advantages of Limited Liability Incorporation? What does limited liability mean? When should I consider forming
an LLC?
Need more information for your micro business? Check out my book, Money and Taxes in a Micro Business, to clear the confusion!
Carol Topp, CPA
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