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Accountant or CPA - which is best for me?
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One of the biggest questions a business owner faces when selecting a professional to perform accounting functions is whether to hire a CPA or non-CPA accountant. Most people think that CPA is always best and all non-CPA are not smart enough to be a CPA otherwise they would have it. While CPAs are to be given the professional respect that they deserve, it is ill advised to assume that a CPA is always best for you. Especially if you have a new or small business, you should give serious consideration to a non-CPA firm that can offer total accounting function – monthly bookkeeping, quarterly tax preparation, and accounting advice.
There are situations in which talented accountants do not pursue a CPA designation because they do not meet one or more aspects of CPA qualification determined by the State Government. The most common is no prior experience working for a CPA. Nearly all CPAs earn this designation after college as they work for a public accounting firm in their audit division. Alternatively an accounting graduate can elect to work for a private company in their accounting department. Other reasons for not pursuing a CPA include no desire to work with publicly traded companies or governmental agencies. These entities require accountants to have a CPA in order to be hired.
A small business owner especially in the startup phase needs to consider an accountant that can provide bookkeeping, accounting advice, and tax preparation. By utilizing one firm, the owner will likely pay lower fees as you are paying for one overhead versus two or three. Also the accountant can be one of your trusted advisors as the accountant will get to know both the business and owner.
In order to select the best accountant for you, you must do your home work. On average, a CPA will charge more for the same service as a non-CPA. Also, it is not uncommon for a CPA to outsource small business clients to a non-CPA firm as the CPA elects to directly participate with larger clients. Here are some questions that will assist you in your search:
- Are you open year round?
- Do you outsource certain work? If so, will my business likely be outsourced?
- What experience do you have with businesses like mine?
- Can you provide me with referrals to contact about your service quality?
- How do you charge for tax returns – flat fee, forms completed, hours worked?
- How do you charge for bookkeeping – hours worked or journal entries inputted?
The best time to start your relationship with an accountant is ASAP and not just at tax time. Using the above steps along with your own experience will give you a trusted advisor that can assist your business year round and for years to come.
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