How to Hire a CPA: Your Guide to Finding a Tax Management Expert
Did you know that only a quarter of businesses feel confident about handling their taxes? And it's not just them – even the IRS advises small companies to consider hiring tax professionals.
For example, a Certified Public Accountant (CPA) can be a game-changer. They can avoid staggering losses, incorrect tax computations, delays, and other unnecessary expenses.
In essence, they ensure your company’s financial health.
So, if you’re ready to onboard a financial expert into your team, we can help!
Our specialty? Remote staffing. We've spent years connecting businesses like yours with top-notch professionals, CPAs included.
But first, let's dive into what a CPA can do for you.
What Is a CPA?
According to the National Association of State Boards of Accountancy, there are about 672,587 actively licensed CPAs in the US.
CPAs are licensed accounting professionals who passed the CPA exam and met the state's education and experience requirements. A strict code of ethics binds them, and they must stay up-to-date on accounting standards and regulations.
CPAs are highly skilled in financial planning, tax preparation, and auditing. They can help you with a wide range of financial services.
Depending on their experience level, local CPAs can charge from $2,900 to $10,500 per month. But if you want to save as much as 73% on labor costs, hire through MultiplyMii - a remote staffing firm that can help you connect with highly skilled CPAs!
CPAs provide valuable insights into your business's financial health and help you make informed decisions to improve your bottom line. But aside from their technical skills, they are trained to be effective communicators and problem solvers. They navigate complex financial issues and guide you in achieving your financial goals.
When To Hire a CPA?
As a business owner, you might wonder when to hire a CPA, especially now that there’s a shortage.
The American Institute of Certified Public Accountants says there are fewer graduates of accounting degrees than in years past. Moreover, the number of people taking and passing the certified public accountant exam has fluctuated between 45% and 60% since 2006.
Here are some situations where you should consider hiring a CPA to help you with your accounting and taxes.
You’re starting a business
Nearly one-quarter of small businesses say that the most significant benefit of having their accountant is knowledge of business practices.
As a startup, a CPA can help you set up your financial systems and ensure you comply with all the tax laws. They can guide you in choosing the right business legal structure, setting up your accounting software, and more. Don’t be part of the 27% of small business owners who do not have a separate bank account for their company!
You're in your first year of business
The first year of business can be overwhelming, especially when managing taxes. According to the Accounting Today 2022 Year Ahead Survey, 51% of firms find it challenging to keep up with regulatory change.
With a CPA, navigate the tax code and ensure you take advantage of all the deductions and credits available. They can also help you set up your accounting systems and make sure you're keeping accurate records.
You have a complicated tax situation
Suppose you have a complex tax situation, such as multiple sources of income, rental properties, or investments. In that case, hiring a CPA to help you prepare your taxes is a good idea.
A CPA can help you navigate the complexities of the tax code and ensure you're taking advantage of all the deductions and credits available.
You don't have time to do your taxes
It’s simple! Hiring a CPA can save you time and stress and ensure your taxes are done correctly and on time.
When hiring a CPA, find someone experienced and knowledgeable in your industry. You should also look for someone responsive and easy to work with.
Hiring a CPA is an investment in your business, and finding someone to help you with your business goals is critical.
How To Hire a CPA?
We understand that hiring a CPA is an important decision for any business owner. As mentioned, CPAs can provide valuable financial advice, help prepare tax returns, and perform audits. But how do you find the right CPA for your business?
Here are the steps you should consider:
- Create an accurate job description
You must create an accurate job description before you start looking for a CPA. This should include the qualifications and experience you require and the specific tasks you need the CPA to perform.
Pro-tip: Be as detailed as possible, and include any special requirements, such as knowledge of a particular industry or expertise in a specific area of accounting.
- Narrow down potential CPAs
Once you have a job description, you can start looking for potential candidates. You can find CPAs and tax accountants through professional organizations, referrals from other business owners, or online directories.
Narrow down your list of potential candidates based on their qualifications, experience, and reputation.
- Interview your prospects
Once you have a list of potential candidates, it's time to interview them.
Ask questions about their experience, qualifications, and areas of expertise. Find out if they have experience working with businesses similar to yours, and ask for references. You should also ask about their availability, fees, and other relevant information.
- Make a decision
After you have interviewed your prospects, it's time to decide.
Consider all of the information you have gathered, and choose the candidate who best meets your needs. Ensure you clearly understand their fees and availability and establish a timeline for the work to be completed.
Hiring a CPA can be an excellent investment for your business. Following these steps, you can find the right CPA to help you with your financial needs. Remember to be detailed in your job description, narrow your list of potential candidates, interview your prospects, and make an informed decision.
Need help in hiring a CPA? Let MultiplyMii do the work for you! We have a decade-long experience recruiting exceptional Filipino talent, helping you grow your business cost-efficiently.
What's the Difference Between a CPA and an Accountant?
All Certified Public Accountants (CPAs) are accountants, but not all accountants are CPAs. While both professions deal with financial matters, some key differences set them apart.
Education and qualifications
One of the main differences between a CPA and an accountant is their education and qualifications.
To become a CPA, an individual must have a bachelor's degree in accounting or a related field and pass the Uniform CPA Exam. Additionally, they must meet specific state requirements for education and experience. On the other hand, an accountant may have a degree in accounting, finance, or a related field, but they are not required to have a CPA license.
Licensing and regulation
Another difference between a CPA and an accountant is their licensing and regulation.
CPAs are licensed and regulated by state boards of accountancy, which means they must adhere to strict ethical and professional standards. On the other hand, some accountants are not licensed or regulated, which means they may have a different level of oversight and accountability.
Scope of services
While both professions may offer tax preparation, bookkeeping, and financial analysis services, CPAs are often more specialized.
For example, a CPA may provide audit, financial planning, and consulting services. Additionally, CPAs are usually required to complete continuing education courses to maintain their license, which means they may have more up-to-date knowledge and expertise.
What To Consider When Determining Who Should Do Your Taxes?
When it comes to tax preparation, there are several options available to you. Each option has advantages and disadvantages, so review your needs and budget before deciding.
Do it yourself
Have a simple tax situation? You can do your taxes yourself using tax software. This option is the most cost-effective since you can purchase tax software at a relatively low price. Doing your taxes yourself can also give you a better understanding of your finances.
But, if you have a more complex tax situation, such as self-employment or complicated investments, doing your taxes yourself may not be the best option. Consider a third-party tax service or hiring a CPA.
Use a third-party tax service
A third-party tax service can be a good option if you have a moderately complex tax situation. These services can help you prepare and file taxes and may offer additional services such as audit support. The cost can vary depending on the complexity of your tax situation and the level of service you require.
But before choosing a third-party tax service, research and find a reputable provider. Look for reviews and ratings online, and ensure the provider has a good reputation for accuracy and customer service.
Hire your CPA
Do you have a tricky tax situation, or do you simply want the peace of mind that comes with professional assistance? Hiring a CPA is the best option for you.
A CPA can provide personalized tax advice and help you navigate complex tax laws. They can also help you plan for the future and ensure you take advantage of all available tax breaks.
The cost of hiring a CPA can vary depending on factors like experience, location, etc. But the benefits of working with a professional outweigh the price, especially if you have a complex tax situation.
But if you’re working on a budget, explore remote staffing options with companies like MultiplyMii. We can help you stand to save more than just labor costs! We can connect you to Filipino talent while avoiding unnecessary additions to your overhead.
When hiring a CPA, choose someone experienced and knowledgeable in tax law. Look for a CPA with a good reputation and a track record of success.
You should also consider their availability and communication style, as you'll work closely with them throughout the tax preparation process.
By weighing your options and assessing your needs and budget, make an informed decision and ensure that your taxes are prepared accurately and efficiently.
Hire a CPA To Help You With Your Finances
Secure a healthy financial future by making informed decisions!
Enlist the expertise of a CPA through MultiplyMii and navigate the complexities of taxation, budgeting, and financial planning!
As a remote staffing company powered by Filipino talent, MultiplyMii boasts a decade-long track record of assisting businesses in finding their ideal candidates.
Let us help pave the way for financial success and peace of mind!
