facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Retired Military Finances 201: 6 Questions to Ask When Hiring a CPA for Your Business Thumbnail

Retired Military Finances 201: 6 Questions to Ask When Hiring a CPA for Your Business

Managing Your Finances

A lot of the things you learn and do in the military will help you run a successful business. From what I've seen, most retired Senior Military Officers and NCOs don't have significant experience with accounting. If you’re looking for a hand, a Certified Public Accountant (CPA) can help you navigate the financial and legal aspects of your business. Among many responsibilities, a CPA can assist you to maximize your tax savings or represent you before the IRS in the case of audits or collections. In addition, a CPA gives you valuable insight into your business’s well-being. For example, they may help you understand critical business metrics, such as the ratio of salaries to total revenue. 

Deciding who to hire as the CPA for your business is an important decision. Before you choose someone, consider asking them these seven questions.

Question #1: What Services Will I Need?

Are you looking for someone to help you handle accounting and payroll, or do you just need some assistance during tax season? Will you need an in-house CPA, or are you primarily searching for part-time help? The answer to this question may depend on the size of your business or the stage of growth your company is experiencing. Figuring out what you’ll need help with and to what extent you’ll need the CPA’s support can help you determine the kind of experience and qualifications to look for in a CPA.

Question #2: What Are Their Credentials?  

If you’ve found a few candidates, check to make sure each one is a Certified Public Accountant. A CPA can complete certain actions that an accountant cannot, such as preparing an audited financial statement. In addition, a CPA has passed an exam, is licensed by your state and completes ongoing education requirements. To verify, you can look up their license number. You can use a tool such as the NASBA CPA Verify site. Furthermore, if the CPA will be preparing your taxes, double-check that they have a Preparer Tax Identification Number (PTIN). You can do this by searching the IRS Return Preparer Office Directory.

Question #3: Do Others Recommend This CPA?

If you’re looking for a starting point, ask for recommendations from other local business owners who you know and trust. Another way to get a good grasp on a potential CPA’s reputation is by reading online reviews and conducting a simple Google search. If you find or read anything questionable, you may want to take it as a red flag. 

Question #4: How Long Have They Been in the Industry?

Understanding a CPA’s level of experience can be critical in deciding whether or not you want to work with them. Depending on what you need assistance with, you may need to seek out an experienced CPA with a background in handling complex account situations. Asking the CPA about their previous experience can help you better understand if they can meet your needs.

Question #5: Who Will I Be Communicating and Working With?

In some cases, a CPA might work with a team and delegate certain tasks. If this is the case, you may want to ask how large the team is and what their qualifications are. If their team is comprised of those who are new to the industry, this may not be the kind of support you’re looking for. In addition, you’ll want to understand who you’ll be directly communicating with along with how they prefer to communicate. If you are someone who prefers phone calls but a CPA usually has an assistant communicate with you over email, they may not be a good fit for the high-touch service you need. 

Question #6: What Are Their Fees?

Understanding how much potential candidates charge is essential in choosing the CPA that is right for your business. You may also want to ask how they bill. For example, some CPAs may bill by project, while others might charge hourly. This also might change depending on the service. When possible, getting an estimate in writing will enable you to have a document to refer to when discussing payment. 

Meeting candidates in person can help you gauge whether or not you can trust this individual and if you feel they’ll be a good fit for your needs and communication style. After all, a CPA will be assisting you with confidential and critical matters towards the present and future well-being of your business.

If you found this article useful, you might enjoy the following blog posts:

Financial Glossary for Retired Military Business Owners: 15 Must-Know Terms


5 Steps to Set Up a Business After Retiring from the Military


Starting a Business After Retiring From the Military



This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.




Disclaimer
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. C.L. Sheldon & Company, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to C.L. Sheldon & Company, LLC website or incorporated herein, and C.L. Sheldon & Company, LLC takes no responsibility therefore. All such information is provided solely for convenience, educational, and informational purposes only and all users thereof should be guided accordingly. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.