Written by Alverta “Sandy” Steinwedel
You must have trust in your accountant since you are sharing all aspects of your financial health. Due to varying needs you may find the need to switch to a new accounting/tax professional. As you begin your search, you should take a moment to determine your needs. Are you looking for an accountant for your business? Do you need help monthly, quarterly, or annually? Are you looking for a professional to prepare your personal and/or business tax return? Are you looking for payroll processing? Are you looking for estate planning and/or financial planning?
Once you determine your needs you must consider the professional. Each licensure is regulated differently but there are various websites that will help you. Certified Public Accountant, Maryland Registered Tax Professional, or Enrolled Agent. Each of these sites outlines the difference between the professions as well as the ability for the consumer/business owner to research a name to confirm the professional is compliant with their license.
Here Are Questions You Should Ask In Your Consultation:
- Experience and time as a professional.
- How many hours of continuing education do they take annually? It is important the candidate is current on tax and accounting rules and regulations.
- What software do they use? (Your current tax professional will need to know for the conversion of data files.)
- Do they have a Written Information Security Plan? The IRS requires tax preparers and accountants to create and maintain a Written Information Security Plan (WISP) as part of their efforts to secure taxpayer data.
- Fees and what is the difference in pricing if a staff accountant is used vs the owner or partner of the business.
- Can they provide a proposal of their costs and what is their usual annual increase.
Once you have decided you will need to inform your current accountant. Many accountants require their clients to sign a engagement letter annually. Take a moment to review your current accountant’s engagement letter to determine if there is a timeframe for discontinuing their services. It is important that you provide a written letter to your current accountant.
Be Clear About The Following Items:
- Your intent to switch accountants.
- The effective date for the switch.
- The documents/data you wish them to transfer to the new accountant/tax professional. Include the years.
- Date which all documents must be switched.
If you do not have a current accountant or if your current accountant is retiring this will not be necessary. The retiring accountant will provide this information to you for approval. In conclusion, the right accountant/tax professional can make a difference in your financial growth so take your time and communicate clearly your requirements and needs.
