Hiring an accountant is a crucial decision, especially if your financial situation involves complex tax needs. To ensure you find the right professional for the job, consider asking the following questions before making your final choice:
- Philosophy on Deductions
- Fee Structure
- Communication During the Year
- Professional Background
- Sales Involvement
- Representation During Audits
1. Philosophy on Deductions
- Question: How much do you push the envelope when it comes to deductions?
- Explanation: Understand the accountant’s approach to deductions. Determine if they are proactive on your behalf or tend to be more conservative. Choose a style that aligns with your comfort level.
2. Fee Structure
- Question: What is your fee structure, and how is work billed at different levels?
- Explanation: Clarify how the accountant’s firm handles various aspects of your return. Inquire about the cost of preparing your return and understand how different levels of service are charged. Expect hourly rates ranging from $150 to $250.
3. Communication During the Year
- Question: Can we have ongoing communication, and is there a charge for phone calls?
- Explanation: Determine if the accountant is available for questions over the telephone throughout the year. Understand the policy regarding charges for phone consultations and whether occasional calls are considered part of the ongoing relationship.
4. Professional Background
- Question: What is your professional background, including experience and areas of expertise?
- Explanation: Gather information about the accountant’s experience, work history, and training. Inquire about specific areas of expertise to ensure they align with your needs.
5. Sales Involvement
- Question: Are you involved in selling any financial products or investments?
- Explanation: Ensure that the accountant’s focus is solely on providing expert tax preparation and advice. Steer clear of professionals who sell investments for which they earn commissions.
6. Representation During Audits
- Question: Will you represent me if I am audited, and what are the associated costs?
- Explanation: Do not assume that your accountant will automatically represent you during an IRS audit. Clearly ask candidates if they can and will represent you and be prepared for additional charges for their time in such situations.
By asking these questions, you can gather essential information to make an informed decision when selecting an accountant who best meets your financial needs and preferences.
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