There are lots of articles written on how the financial planners get paid and how you can avert paying extra fees with the help of accountants. But there is not much written on the CPAs and how they help you with your business finances. Philip Stein and Associates in Israel, an organization which has got some of the best CPAs in Israel is of the opinion that the clients should make sure that their CPA is working in their favor. What is the way in which you may know that you’re being perfectly represented and that you’re not wasting your dollars?
The services of a CPA might be costly enough but in most cases, they’re worth the money. But how are you supposed to know that you are working with the best CPA? Here are few red flags to watch out for.
#1: When they are actually not a CPA
When you seek help of a certified public accountant, he should own a degree in finance management, accounting and then go through a series of exams on attesting, auditing, business concepts and environment. There are practice requirements too where a CPA needs to practice under a senior CPA for few years. This helps them in gaining better expertise.
#2: When they’re not engaging in strategic planning
You shouldn’t be surprised in case you owe the IRS when your tax return should have been completed. Your CPA should have talked about it to you through the entire year. The CPA should engage in strategic planning and not just fill out forms for tax return. The CPA should offer you advice on monitoring investments, harvesting your losses and monitoring things. If he isn’t doing these, you’re with the wrong person.
#3: They are doubly charging you
You can’t deny the fact that CPAs are doing business and they’re earning a living. Whenever they find new ways of adding to their stream of income, they will definitely consider them. But if you find your CPA looking for ways to charge you again even after he has charged you once, this is a warning that you’re working with the wrong person. Make sure you watch how they’re getting paid. Are they receiving a commission for sale of finance products?
So, before hiring a CPA, make sure you’re aware of all the red flags so that you can immediately recognize someone who doesn’t have your best interests in mind.