Things to Look for in an Accountant

A good accountant meets your needs and answers your questions.

Whether you are an employee, a self-employed individual or the owner of a large corporation, hiring a good accountant helps you minimize your tax burden and comply with complex tax laws. With the lack of regulations when it comes to tax preparation professionals, anyone can call themselves accountants, according to Motley Fool columnist Tim Beyers. As such, you need to carefully screen your accountant.

Qualifications

Proper qualifications ensure that you get an accountant who has met the minimum criteria of a reputable institution. Choose an accountant with a certified public accountant -- CPA -- or certified management accountant -- CMA -- qualification. Such a qualification means that the individual has at least passed an exam and gained some accounting experience. He also continues to take educational courses to maintain his certification. A CPA can take care of your personal or business accounting needs, while a CMA can handle accounting and take part in the management of a business.

Experience

Accountants often specialize in certain groups of clients. Because different clients have varying needs, you should find an accountant who has experience dealing with your financial circumstances. For example, the sole proprietor of a small business has different accounting needs compared to a large corporation. If you work in an industry with plenty of unique financial details, industry-specialized accountants may best serve your needs. For example, an accountant specializing in the auto dealership industry would know all the tax breaks a dealer can claim.

Growth Potential

To save yourself the trouble of finding another accountant in the near future, secure an accountant who will be able to grow as your finances grow. While you may only need him to prepare your tax return forms now, you may need him to report financial statements when you set up your own business. You may also need your accountant to determine the best investments for you, help you eliminate debts and plan for your retirement.

Compatibility

Because you will work closely with your accountant, there has to be a certain level of compatibility. You need to feel comfortable asking questions of your accountant, telling him your concerns and depending on him to finish his job. You and your accountant should have a similar level of risk tolerance, so he can be flexible enough to meet your needs. He must also sympathize with your financial goals. For example, an accountant who thinks running a small business is a waste of time would not handle the accounting of a small business well.

References

• The Motley Fool; Is It Time for an Accountant?; Tim Beyers; January 2007
• Inc.; Choosing the Right Accountant for Your Business; April 2010
• Bankrate; Hire a Good Accountant or Your Numbers Will Crunch You; Robyn A. Friedman; December 1999
• MSNBC; What to Look for When Hiring an Accountant; Mark J. Kohler; March 2011