How do Businesses find a Good CPA Firm?

Tax Planning

A majority of business owners believe that a CPA License validates that they are knowledgeable in Tax Planning.  However, the CPA Exam only deals with fundamental questions about taxation not Tax Planning.  In order to be proficient in Tax Planning a person must be able to do tax research which requires a thorough understanding of the Internal Revenue Tax Code as well as the corresponding regulations and IRS citations.  A CPA can gain some of this knowledge by completing a Master’s Degree in Taxation or working for an elite public accounting firm such as Price Waterhouse Coopers, Deloitte, Ernst and Young or KPMG as a Tax Partner at one of these firms.  These Tax Partners deal with complex tax situations every day.  The knowledge of the IRS Code is extremely important in advising clients which type of entity is best for their company.  They also should be knowledgeable in dealing with Deferred Compensation Planning, 401K Plans or Simple Plans.  Tax Planning for their company also involves helping their children pay for College Tuition.  Also knowing when to take Social Security benefits for themselves and their spouse, buying or leasing trucks or vehicles to name a few. 

Experience

The CPA that is working for you should have a minimum of 10 years of experience so that they have dealt with numerous business situations that arise for their clients.

Income Statements

The CPA Firm should provide monthly Income Statements and review them to ensure that the company remains profitable throughout the year and when necessary, immediately contact ownership when they determine a problem has arisen. 

Line of Credit with a Bank When Required

If it becomes necessary to borrow funds from a bank you should be aware that the bank will require Financial Statements prepared by your CPA depending upon the amount of money that is borrowed will depend upon the type of Financial Statements that will be required, such as; Compilation, Review or Audit.  Each of these Financial Statements are costly.  The lowest cost one is Compilation and the most expensive one is Audit. 

Small to Large CPA Firms

A Small CPA Firm has an advantage since your company will deal with the seasoned CPA which is more likely the owner of the Firm rather than a large CPA Firm who would have one of their associates who has a lot less experience work with your company. 

New Advice

As a business owner there are important questions that arise from time to time about your business.  It is important that your CPA Firm is able to answer your questions in a timely manner; and also, there should be NO COST TO THE CLIENT FOR ANSWERING ANY OF YOUR QUESTIONS.

For more information about DeSantis & Co., P.C. visit our website at desantisandcocpa.com.