Results 1 to 14 of 14

Thread: What makes a good accountant?

  1. #1
    God/dess
    Joined
    Jul 2004
    Location
    Temporary Lurkmode...
    Posts
    12,609
    Thanks
    0
    Thanked 79 Times in 35 Posts

    Default What makes a good accountant?

    I am new to the whole taxes thing and this time I would love to be prepared before I do anything dumb.

    What makes a good accountant? How are they suppose to treat you or handle your taxes/finances? I dont want to get taken advantage of.
    Thanks...I tried a search on this but nothing came up and help would be awesome!
    you live like an ivy vine
    you can only survive by clinging onto trees
    that's your flaw
    put down some roots so you can stand on your own
    -Kenpachi



  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: What makes a good accountant?

    'plausible creativity'

  3. #3
    God/dess
    Joined
    Sep 2002
    Posts
    8,031
    Thanks
    0
    Thanked 143 Times in 42 Posts

    Default Re: What makes a good accountant?

    A brother at the IRS.

  4. #4
    God/dess Bunny's Avatar
    Joined
    Feb 2003
    Posts
    2,495
    Thanks
    1
    Thanked 36 Times in 30 Posts

    Default Re: What makes a good accountant?

    I found my cpa by asking people I know and my boss uses her. i'd just ask around and make sure you use an actual CPA not just H & R Block or something.

  5. #5
    Member OCWizard's Avatar
    Joined
    Apr 2004
    Posts
    18
    Thanks
    0
    Thanked 1 Time in 1 Post

    Default Re: What makes a good accountant?

    As a CPA, I can tell you all accountants are not created equal. Some accountants work for private or public companies and may choose to do taxes on the side. These guys are dangerous because they do not work with taxes on a daily basis and therefore don't keep up with the changes in the tax law.

    The person you are looking for is a CPA who is in business for him or herself and whose practice is almost entirely tax work. His or her livelihood is based on the tax work they do.

    Stay away from the seasonal pseudo tax professional who work at HR Block or its equivalent. These people are filling out computer input forms and do not bring any creativity to the table.

    If you run across an Enrolled Agent ... this guy lives and breathes taxes. He would do a good job for you, but he may shy away from gray areas that are ligitimate.

    So once again look for a small business tax professional who has been in the business for at least three years, who will be willing to sit down with you and explain your return to you - you need to understand it because it is your return and you are the one who will be sitting across the table from the IRS Agent if your return is pulled for audit.

    If you have no one to recommend someone to you, take the time to select five CPA's from the yellow pages and interview them over the phone. Find someone you are comfortable talking to and who fits the criteria above.

    My last two suggestions are to read all the posts made by Melonie ... she is a smart lady and gives good advice. And lastly, I wrote a book titled: The Business Side of Escorting, by J.D. Roberts. It is equally applicable to any cash business which is what your business is. It can be previewed on Amazon.Com or BarnesandNoble.com.
    Good Luck!

    OCWizard

  6. #6
    Member Jon_CPA's Avatar
    Joined
    Nov 2004
    Location
    Atlanta
    Posts
    50
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What makes a good accountant?

    There are many factors to consider when choosing an accountant/tax preparer.



    1) What is their experience in your industry? It is preferable to obtain the services of an accountant that primary focuses on the adult entertainment industry. Barring that look for an accountant whose cliental is primarily in the entertainment industry.



    2) What is the economic base of their cliental? An accountant dealing with seven figure incomes has to know about a whole host of tax issues that will not be applicable for an accountant who primarily deals with individuals in the five figure income. The reverse is absolutely true, there are a host of tax issues and credits available to those in the five figure income that are not available to the seven figure income crowd.



    3) Experience! Experience! Experience! The amount of time per year and the number of years of service in performing tax compliance and planning work is important. Someone who only devotes four out of twelve months to preparing is not going to know as much as one who works on taxes year around.



    4) Cost – The amount an accountant can charge is a balancing act between what their clients can afford and what their level of expertise is worth. A 3rd year accountant dealing with seven figure income clients will charge more than a 10 year accountant who deals with five figure income clients. While you never want to overpay, remember you do not want to underpay either. Underpaying for an accountant maybe a sign of either hiring an accountant whose client base is below your income level, or an accountant who may not have sufficient experience. – If you think cost of knowledge is expensive try the cost of ignorance.



    5) Honesty and Integrity- You can find plenty of accountants and tax preparers who will do anything to screw the government and put money in your pocket. Unfortunately, most people with that approach are also just as likely to be willing to screw you (and not just in the physical sense). An accountant who is honorable and has integrity is going to be much more likely to be sitting beside you during an audit than one who was out to screw the government. Remember honesty and integrity is a two way street, and yes I have fired clients whom have been dishonest with me, they are not worth the risk



    6) Answers and asks questions. – Your accountant should be willing to answer any questions you may have. This is done for two reasons, one, an informed client is a smarter client and a smarter client is an easier client. Two, yes we bill you for the time it takes to answer your questions. Your accountant should be asking you questions when preparing your tax return. Any accountant that does not ask you questions is just cookie-cutting your return. Cookie cut returns result in missed deductions that you may be entitled to, and avoiding the pitfall of taking deductions that you are not entitled to.



    Hope this helps.

  7. #7
    God/dess
    Joined
    Nov 2004
    Posts
    2,352
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What makes a good accountant?

    Do it yourself its not that difficult you can still be creative it takes a while to learn all the tricks but at least your not paying someone , we always get a good return 3k and up .

  8. #8
    God/dess Vyanka's Avatar
    Joined
    Aug 2004
    Location
    Cash-Stack-istan Island
    Posts
    14,704
    Thanks
    6,564
    Thanked 11,625 Times in 3,697 Posts
    My Mood
    Angelic

    Default Re: What makes a good accountant?

    Silly question...

    Can account(who hasn't done your taxes before ever) easily find out your personal info? Like what you do for a living, who lives with you, what school you went to, ect.?

  9. #9
    Member
    Joined
    Mar 2005
    Posts
    37
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What makes a good accountant?

    Quote Originally Posted by Vyanka
    Silly question...

    Can account(who hasn't done your taxes before ever) easily find out your personal info? Like what you do for a living, who lives with you, what school you went to, ect.?

    Not a silly question. An accountant will not have this information unless you provide it to him. We don't need to know who you live with unless it relates to your taxes or other business matters. The same goes for most of your personal life. We should know what you do for a living as it helps to know how you earn your money and what kind of deductions should be taken.

    I strongly disagree with CuriousJ about doing it yourself unless you know what you are doing. While the forms aren't the most difficult things to fill out, not understanding the tax laws and codes might result in your filing a return that pays more tax than necessary or, worse, it might result in your filing a return that is incorrect and likely to get audited.

    Not all accountants will bill you for your questions. My firm has a practice of not billing for each phone call and each question. We have found that informed clients that aren't constantly hit with a bill for a 15 minute phone call are happy clients that return each year. Our turnover is minimal. Our average fees are slightly higher than average but the fact that we are at our clients disposal year round seems to make them happy

    Tired accountant

  10. #10
    Curious Guest
    Joined
    Mar 2005
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What makes a good accountant?

    As with any professional, you get what you pay for, so be sure of what it is you are actually spending your money on. Our annual fees are reasonable for the amount of time and effort spent with each client, and we pride ourselves with having a great group of informed clients, and that group is multi-generational due to the age of our practice and our personal attention. Fees are for a year's worth of accounting advice. Clients recommending friends or co-workers is a good sign, but handling 3 generations of the same family is somethign to feel good about.

    By informed, I mean that a client knows what and why we are recommending something, not that we are schooling them all in tax law.

    Beware of a few things for sure:

    Accountants that say, "Don't worry about it, I know what I'm doing." when you ask for clarification of an issue.

    An Enrolled Agent is NOT an employee or agent of the IRS, nor is it an indication that he or she was a former employee or agent of the IRS.

    It is illegal to charge a percentage of a refund as a fee. Period.

  11. #11
    God/dess
    Joined
    Jul 2004
    Location
    Temporary Lurkmode...
    Posts
    12,609
    Thanks
    0
    Thanked 79 Times in 35 Posts

    Default Re: What makes a good accountant?

    WOW thanks for the response everyone!! I attempted to do my taxes just to see if I could do it and it was a wreck.
    It is illegal to charge a percentage of a refund as a fee. Period. -Fleeber
    Awesome mini tid bit of info. I dont think I would have ever known that. I see from the responses that accountants are almost like doctors..you dont want them to do any unessecary work that you dont know about. Im sure when I start to call people that I can be able to ask them to check their credentials amonst other things.
    you live like an ivy vine
    you can only survive by clinging onto trees
    that's your flaw
    put down some roots so you can stand on your own
    -Kenpachi



  12. #12
    Member
    Joined
    Mar 2005
    Posts
    37
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What makes a good accountant?

    referrals are almost always best. Ask if they have experience with people in your profession (and I don't mean that they frequent clubs). If you can arrange a free consult, do it. It's always nice to meet the person with whom you are entrusting your taxes.

  13. #13
    God/dess Bunny's Avatar
    Joined
    Feb 2003
    Posts
    2,495
    Thanks
    1
    Thanked 36 Times in 30 Posts

    Default Re: What makes a good accountant?

    I strongly disagree with CuriousJ about doing it yourself unless you know what you are doing. While the forms aren't the most difficult things to fill out, not understanding the tax laws and codes might result in your filing a return that pays more tax than necessary or, worse, it might result in your filing a return that is incorrect and likely to get audited.
    I took tax accounting in college along with a couple of other accounting classes and worked as an accountant for about 10 years (or as a clerk in the beginning). I did G/L work not tax though except for filing sales taxes. I now am in a totally different field as an independent contractor. I DO NOT do my own taxes! I guess technically I could but I end up with so many questions and such it's a lot easier for me to sit with my CPA for 30 minutes and discuss it and have her do it for me. I also save money by getting my things organized on spreadsheets so all she has to do is put the numbers in the right places or ask me a few questions. She has never charged me for a consultation, only to do my taxes once a year. This year it cost me $235 for a 1040, 1040-ES, Schedule C, Schedule SE, 4562, 4797, and 8829. I wouldn't have even know exactly what to fill out and now it's done. And until I read this post I had forgotten to pay the bill...

  14. #14
    Member
    Joined
    Mar 2005
    Posts
    37
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: What makes a good accountant?

    I think your accountant should send us all a piece as a thank you for getting his bill paid.

Similar Threads

  1. good accountant in dfw area???
    By thalia4 in forum Dollar Den
    Replies: 0
    Last Post: 07-24-2006, 08:12 AM
  2. ISO Good Tax Accountant in SF
    By Dylan Tyler in forum Dollar Den
    Replies: 0
    Last Post: 03-30-2005, 01:14 PM
  3. Replies: 0
    Last Post: 12-26-2004, 02:27 PM
  4. How do I find a good accountant??
    By GoldCoastGirl in forum Dollar Den
    Replies: 13
    Last Post: 05-29-2003, 02:45 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •