Most businesses and individuals with complicated tax returns require the help of a certified public accountant (CPA). A good CPA not only files your taxes, but also analyzes your financials and gives you advice on how to minimize your bottom line.
Unfortunately, not all CPAs are good, nor are they all trustworthy. Being able to identify when it is time to fire your account or CPA, and knowing how to go about doing so, is crucial in keeping your personal taxes accurate and/or helping keep your business afloat. If you are not receiving everything that you need and deserve from your CPA, it may be time to let him go.
You deserve high-quality assistance from your CPA, which includes all of the following services:
Because your CPA has a better understanding of tax law than you do, he should be a useful resource in helping you make decisions on how to structure your business or proper methods for taking tax deductions on your personal tax return. If you run a business, a good accountant will be able to determine whether your business should be a sole proprietor, C Corporation or S Corporation, and explain to you all of the reasons why that is the best structure for you.
It goes without saying that your CPA must file an accurate tax return on your behalf and inform you of your tax obligation. Any dishonesty on his part may land you in a great deal of trouble. Since the IRS will come after you if your return is not filed or if you under-report your tax obligation, your CPA must comply with the law, while at the same time making sure that you either receive the best return possible or owe the lowest tax bill possible.
Tax laws are constantly changing, and it is the responsibility of your CPA to stay abreast of these changes and to ensure that your business is in full compliance with the IRS. If your CPA is behind the times or does not inform you of any changes that may affect your business, it is time for you to say goodbye.
When firing your accountant, it is typically best to write a letter informing him that you no longer need his services and requesting that he hand over all of your original documents. Avoid giving reasons, at least until after you have received your documents; otherwise, he may lack the motivation to move quickly, especially if he feels that you’ve just insulted him.
The caliber of CPA that you choose to work with should provide you piece of mind that taxes are done accurately, while taking advantage of all tax laws out there. Some accountants provide great advice and help make sound financial decisions, while others do nothing except cash their clients’ checks. If you are not receiving all of the services mentioned above, then it is time to fire your CPA.
This post was published on August 31, 2011