The best way to find a good accountant is
to get a referral from your attorney, your banker or a business colleague. You
can also check in with the Society of Certified Public Accountants in your
state, which can make a referral.
While accountants usually work for large
companies, CPAs (certified public accountants) work for a variety of large and
small businesses. Don't underestimate the importance of a CPA. This title is
only awarded to people who have passed a rigorous a two-day, nationally
standardized test. Most states require CPAs to have at least a college degree
or its equivalent. Several states also require post-graduate work.
Once you have come up with some good
candidates, it is important to determine how much of the work your company will
do and how much will be done by the accountant.
Accounting services can be divided into
three broad categories: recording transactions, assembling them, and generating
returns and financial statements. Although the first two categories require a
lower skill level than the latter, many firms charge the same hourly rate for
all three. This is why it's important to determine exactly what work you want
an accountant to handle.
Most accounting firms offer tax and
auditing services. But what about bookkeeping? Management consulting? Estate
planning? Will the accountant help you design and implement financial
information systems? An entertainment CPA
Los Angeles may offer services that include analyzing transactions for
loans and financing; preparing, auditing, reviewing and compiling financial
statements; managing investments; and representing you before tax authorities.
Although smaller accounting firms are generally a better bet for entrepreneurs, they may not offer all these services. Make sure the firm has what you need. If it can't offer specialized services, it may have relationships with other firms to which it can refer you to handle these matters. In addition to services, make sure the firm has experience with small business and your specific industry.
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