How do I find a good accountant??
I've been doing dancing non-legitimately for just over a year now (yes, I know I know...) however I'm now at a club where I have consistent earnings.
Due to this consistency in earnings I now know how much MIN. I earn per week. I also know how much it costs me to live.... so now here is my question.
Can you give me any tips, advice, suggestions, questions I should ask ... etc... so that I can find myself an accountant that knows her/his "stuff".
I don't know any dancers personally that have accountants of their own so I can't really ask them.
Re: How do I find a good accountant??
Call the BBB and find out about complaints, if any. And they will tell you as well complaints against "what" with the accountant.
Ask the accountant if he/she has experience with people in the entertainment business. Ask these important questions, if you don't feel this person can help, you find another.
Some dancers go to H&R block for petes sake, ;) And they are happy.
But you have to start interviewing accountants, see what they can do for you. Thats how i found mine. He had some experience with a few dancers before, so that helped me feel better.
But check up on him through the BBB. I do this alot with companies i know of.
Good luck.
Re: How do I find a good accountant??
After checking out education and credentials, you want to know about experience. Specifically is the accountant experienced with small busines? Does the accountant work for other entertainers? Does she have any work experience for your revenue service? (IRS in the US) How does she handle audits? What are her fees for different services. Note, fees are the least important and really should only be used as a "tie breaker" among equals.
Re: How do I find a good accountant??
You can always go to your local chamber of commerce's directory, there's always a few dozen accountants that have been in the field for a few years. Ask around, I'm sure you know a few other dancers who have their own accountant in your club. If your in college, perhaps you have a close friend in business school who knows someone at an accounting firm they can recommend.
I would avoid using your club's accountant, people who solicit for your business (especially guys in clubs), and seasonal tax services who close shop shortly after April 15th.
Also, if you find yourself with an accountant who offers to do your return in-kind for a private dance you should probably go elsewhere... but I'm sure I'm stating the obvious.
Re: How do I find a good accountant??
I'll keep everyone updated in my hunt.
I was considering using the accountant that my club uses ... I thought that might be easier whilst I'm working at the club and then all I have to do is transfer everything if I ever leave???
??? Just curious as to why using the club's own accountant is not recommended ?? ???
Re: How do I find a good accountant??
There can be a conflict of interest in how the club's books are being handled and what the dancer is deducting as an expense. If both sides, in a dispute, are correct the accountant is always going to take the side of the club because they're paying their accountant more than a dancer does.
I'm not saying that club owners are tax evaders and accountants who handle their books aid them in tax evasion but their less like to go to bat for you if you ever had a dispute with the club. A good accountant will go to bat for you if you ever had a dispute with your company or the IRS.
Re: How do I find a good accountant??
I'm going to go with the company accountant for the time being. I am and will be searching out (in the meantime) a separate accountant.
Using the club accountant (who is a company and will supposedly treat me as another customer) will buy me time. I won't feel rushed to find an accountant so I can find a good quality one :-)
Re: How do I find a good accountant??
How many of you file taxes and get money back from the IRS? In an initial consultation with an accountant what information is usually exchanged? Is it better to look in the phone book for an accountant that specializes in helping out with problems (audits, non filers, etc etc) or an accountant that has worked for the IRS in the past, lots of experience 20 years plus more etc etc, I have a friend that works in a cash bussiness. This person went to H and R block and was told they owed thousands. Then they went to another accountant and received thousands back. How is that possible? What is the difference between a CPA and a PA? And a really dumb question but Im asking anyway.....Why is it not a good idea to go to an accountant that is recommended from a client met at the club? If it is a legit accountant how would the strip club patron even find out that you went to see the accountant..?
Re: How do I find a good accountant??
VERY quick point -- NEVER used the same accountant as the company you work for, even if they are an accounting firm and supposedly have ethical standards. EVENTUALLY, they will be in the ethical dilemma of having to sort out some confusion between you and your boss, and guess which side will win????
Re: How do I find a good accountant??
Susan is exactly right. For a specific example, say the club you work at allows dancers to collect $20 directly from customers for private dancers, but then requires the dancers to pay say 50% of the private dance money they collected to the club afterwards. In this situation the club could argue that since THEY did not directly receive money from the customer that THEY are not liable for income tax on that $20, the dancer is, with the $10 paid by the dancer to the club becoming a 'personal' tip to the club manager which may or not get reported on the manager's personal tax return but which will almost certainly not get reported on the club's tax return. By the same token the dancer could argue that she was acting as the club's agent when selling the $20 private dance, such that $10 of that income is hers and $10 of that income is the club's. Using the same accountant as the club does then creates a conflict of interest, since the same accountant cannot knowingly report this same $20 income in two different ways since the tax returns will not jive possibly triggering an audit. Reporting all $20 as your income does not get you the lowest taxes, but it does result in lower taxes for the club. Reporting $10 as your income and $10 as the club's income does get you the lowest taxes, but it results in the club paying more taxes. Guess which option the accountant will choose if he's being paid 10 times as much by the club as he is by you !!!
Re: How do I find a good accountant??
"How many of you file taxes and get money back from the IRS?"
I filed taxes every year that I earned enough. Because I was careful with the estimates, I always had a tiny overpayment. (Which I always applied to the next estimate.)
"In an initial consultation with an accountant what information is usually exchanged?"
That depends on if you decide to hire the accountant.
"Is it better to look in the phone book for an accountant that specializes in helping out with problems (audits, non filers, etc etc) or an accountant that has worked for the IRS in the past, lots of experience 20 years plus more etc etc,"
That depends on your situation. If you are just starting out, you certainly don't need someone with the specialization of dealing with non-filers. I would look for someone who was an enrolled agent. They really know their way around the IRS.
"I have a friend that works in a cash bussiness. This person went to H and R block and was told they owed thousands. Then they went to another accountant and received thousands back."
Watch the accountants who tell you they can get you lots back from previous years. They have been known to file amended returns claiming lots of overpayments. The IRS will then have the Treasury issue checks to you and the accountant. But, the IRS will start checking into things a little more and start assessing deficiencies or even penalties for filing false or misleading returns! Make sure you know and understand exactly what is going on before you file.
"What is the difference between a CPA and a PA?"
In addition to an accounting degree from a accredited college or university, a CPA (Certified Public Accountant) has taken a professional licensing examination and passed it. She also has performed audits under the supervision of a CPA and those audits have been judged satisfactory. A PA (Public Accountant) has not passed the CPA exam. A PA may, or may not have a degree, a PA may or may not have ever audited anything, let alone been supervised while doing so. That is not to say that PAs aren't capable accountants. Some are, some aren't. But there's no checking up on them by an outside agency.
"And a really dumb question but Im asking anyway.....Why is it not a good idea to go to an accountant that is recommended from a client met at the club? If it is a legit accountant how would the strip club patron even find out that you went to see the accountant..?"
No problem with seeing an accountant recommended by a customer. But, you should not make your decision on the basis of that recommendation alone.
HTH
Z
Re: How do I find a good accountant??
Never use an accountant that you met at a club....you'll have to divulge too much personal information and they can use that against you in the future should they not "score" with you. Just a word of advice to the younger crowd out there.