Yesterday we were talking about why you need a CPA. If you missed that, click HERE to read. Today, I’m going to give you a few tips for hiring your own CPA.
- Don’t hire a friend. Don’t hire family. Don’t hire a cheer mom. Don’t hire a staff member who does bookkeeping on the side. I’m pretty serious about those “don’ts”. I’ve seen things go very, very badly for business owners when they have a friend who is helping out. I’ve seen people’s privacy and financial information no longer be private. I’ve seen people’s taxes not get filed on time because someone was busy or on vacation. I’ve even seen someone who thought the taxes were being filed on the business find out that it hadn’t been done for years. When I pay a professional, I expect a service. If it’s not done well, I find a new person to perform that service. When you’ve got a personal connection, you’re often willing to let things slide. You’re gracious and kind because you know the person and want to maintain a relationship. Your taxes and finances are not the place to let things slide. Hire someone you don’t know so you can fire them if they’re not doing a good job for you.
- Look for the title C.P.A. This means Certified Public Accountant. While we occasionally use the terms “bookkeeper”, “accountant” and “C.P.A.” interchangeably, they’re not the same thing. A CPA has to pass a series of exams and has to do continuing education to maintain her credentials. I don’t know about you, but I want the person filing my taxes and informing me of potential write offs to have the most up-to-date information. Don’t you?
- The CPA should have some level of interest in your business. When I was interviewing my CPA, she asked if we could meet at the gym. She had never done accounting for a cheer gym before. She wanted to fully understand the business so she could accurately perform work for us. I explained how competition fees came in, and how they were different from tuition. I told her about our business structure (an LLC at the time) and our annual revenue. She asked a lot of questions. Once I hired her, she also saved us a TON of money over the years through her recommendations of business reclassification, up-to-date news on sales tax legislation in our state and even catching a $15,000 mistake the state made on our tax payments. If your CPA has no interest in your business, she likely doesn’t have your best interest in mind. Today, my CPA doesn’t go visit every client or cheer gym that uses her (some are across the US), but you better believe she can understand the ins and outs of a cheer gym in order to help owners!
- The CPA should reply back to you in a timely manner. I said this about an attorney too. I’m not interested in hiring a professional who isn’t professional. If I email or call, I expect an answer within 24-48 business hours. If you’re on vacation, I want your secretary to set up an appointment for a future date or at a minimum – I want an autoreply email that tells me when you’re returning. I fully understand vacations. I don’t want to wonder why you’re not replying to me though.
- A CPA should have a fair billing process. Our CPA isn’t cheap (though from other gym owners who use her in other states, I hear she’s very fair on pricing in comparison.) However, I don’t want to pay enormous amounts of money and still have to do tons of work. Today, we worked out the perfect, adaptable plan for our gym. Years ago, I couldn’t afford high rates, so she worked with me so I could do more work on my end and pay less. Today, I want to do little to nothing. So, I pay her more, and she does it for me. She worked with me as my business grew. As my business grew, I wanted more and more off my plate and was willing to pay to get it off there.
- Your CPA should follow the methods you are wanting to use when it comes to your finances. I’ve heard a few Academy members over the years tell me their CPA wasn’t on board with Profit First accounting. My reply? Find a new accountant. When I first brought it up to mine 5 years ago, she was honest that she had never heard of it. So, I bought her the book, which she eagerly read. Today, she fully understands why we use this method to improve our cash flow. I can’t imagine an accountant telling me she didn’t have time to improve her own knowledge of this financial method that is rapidly growing in the US and changing the way businesses find their cash flow.
I hope you found these tips helpful. It’s SO IMPORTANT to find a CPA that will do a good job for you. You may pay more than having your family friend do your books and your taxes, but there is a chance you’ll save more as well!
