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In the realm of financial management, having a skilled and reliable accountant is indispensable. However, merely having an accountant isn’t enough; ensuring they’re performing their duties effectively is crucial for the financial health of your business. While many resources focus on tax filing, we’ll steer clear of that and delve into a broader perspective—evaluating your accountant’s overall performance. Here’s a comprehensive guide in answer to the common question, “How to check my accountant’s work?” and to help you assess whether your accountant is truly delivering value to your business.
What Is an Accountant & What Do They Do?
An accountant is a financial professional responsible for managing and analyzing financial records, preparing tax returns, and offering financial advice. They ensure compliance with laws and regulations, assess financial risks, and aid in decision-making for businesses and individuals. Additionally, accountants may perform audits, evaluate financial performance, and develop strategies to improve profitability. Their expertise helps maintain accurate financial records and provides valuable insights to support financial health and success.
Questions to Ask An Accountant Before Hiring Them
If you’ve been wondering what makes a good accountant, here are a few questions to ask candidates before hiring them.
Qualifications and Experience
- What qualifications do you hold? Are you a Certified Public Accountant (CPA)?
- How many years of experience do you have in accounting, specifically in [your industry]?
- Can you provide references from clients with similar needs?
Services Offered
- What specific services do you offer?
- Do you specialize in any particular areas (e.g., tax planning, auditing, bookkeeping)?
- Can you handle the size and complexity of my financial situation?
Communication and Availability
- How do you prefer to communicate with clients (e.g., email, phone, in-person)?
- What is your typical response time for client inquiries?
- Are you available year-round, or do you only operate during tax season?
Fees and Billing
- What is your fee structure? Is it hourly, project-based, or a retainer?
- Are there any additional costs I should be aware of?
- Can you provide an estimate of what I can expect to pay for your services?
Technology and Tools
- What accounting software do you use?
- Are you comfortable with the latest technology and tools in accounting?
- How do you ensure the security and confidentiality of my financial information?
Is Your Accountant Doing A Good Job? What To Check:
Wondering, “How to check my accountant’s work”? Here’s a checklist to help.
☑ Review financial statements for accuracy and completeness.
☑ Ensure that all transactions are properly recorded and categorized.
☑ Verify mathematical accuracy of calculations, including totals and balances.
☑ Cross-check bank statements and reconciliations with accounting records.
☑ Confirm compliance with relevant accounting standards and regulations.
☑ Assess the timeliness of financial reporting and submission of tax returns.
☑ Evaluate communication and responsiveness to inquiries or concerns.
☑ Review audit trails and supporting documentation for transactions.
☑ Analyze trends and anomalies in financial data for potential errors or discrepancies.
☑ Consider feedback from other stakeholders or clients regarding their experiences.
How Do I Know If My Accountant Filed My Taxes?
To confirm if your accountant filed your taxes, request proof of submission such as a filing confirmation or IRS acknowledgment. Alternatively, check your tax records online through the IRS website or contact the tax authority directly. In general, seek to maintain clear communication with your accountant and establish expectations regarding tax filing deadlines and procedures. If in doubt, promptly follow up with your accountant for verification.
Signs of a Bad Accountant
These 8 signs of a bad accountant might mean it’s time to outsource your accounting or hire a new accountant.
- Persistent errors in calculations, reporting, or tax filings
- Lack of communication or delays in responses
- Missing important deadlines for tax filings or financial reporting
- Resistance to feedback or unwillingness to adapt to client needs
- Providing inconsistent or questionable financial advice
- Ignoring legal requirements and regulations
- Withholding information or lacking transparency
- Difficulty building rapport or maintaining a positive working relationship
Frequently Asked Questions About How to Check My Accountant’s Work
What qualifications are required to become an accountant?
Typically, accountants hold at least a bachelor’s degree in accounting or a related field. Many accountants also pursue professional certifications such as Certified Public Accountant (CPA), Chartered Accountant (CA), or Certified Management Accountant (CMA), which may require passing exams and fulfilling experience requirements.
How do accountants help businesses?
Accountants play a crucial role in helping businesses manage their finances effectively. They track income and expenses, analyze financial data to identify trends and opportunities for improvement, provide insights for strategic decision-making, ensure compliance with tax laws and regulations, and help businesses minimize financial risks.
How do I find the right accountant for my business?
To find the right accountant for your business, assess your needs, seek recommendations, and evaluate candidates based on their expertise, communication skills, and compatibility with your business culture and budget. You can also enlist the help of a company like TGG for recruiting.
What is the difference between an accountant and a bookkeeper?
While both accountants and bookkeepers deal with financial data, their roles differ in scope and complexity. Bookkeepers primarily focus on recording financial transactions, maintaining ledgers, and reconciling accounts. Accountants, on the other hand, analyze financial information, prepare financial statements, provide financial advice, and help businesses with tax planning and compliance.
How do accountants help individuals with their taxes?
Accountants assist individuals with tax planning and preparation, ensuring they take advantage of available deductions and credits to minimize their tax liability. They also help individuals navigate complex tax laws and regulations, provide advice on tax-efficient strategies for investments and retirement planning, and represent clients in dealings with tax authorities if necessary.
What industries do accountants work in?
Accountants can work in various industries, including public accounting firms, corporate finance departments, government agencies, non-profit organizations, and consulting firms. They may specialize in areas such as audit, tax, forensic accounting, management accounting, or financial analysis, depending on their interests and career goals.
How do I know if my accountant filed my taxes correctly?
To ensure your taxes are filed correctly, review your tax return for accuracy and completeness. Double-check figures, deductions, and credits against your records, and ask your accountant to explain any discrepancies or uncertainties.
What if my accountant is wrong?
If you believe your accountant made an error on your tax return, discuss your concerns with them first. They may be able to correct the mistake or provide an explanation. If you’re unsatisfied with their response, you can seek assistance from a different accountant or tax professional.
How much do most tax preparers charge?
Tax preparers’ fees vary depending on factors such as the complexity of your tax situation, the preparer’s experience, and your location. Generally, fees can range from a few hundred to several thousand dollars for complex returns. It’s advisable to request an estimate upfront and clarify the fee structure before engaging a tax preparer.
How do you check if a PTIN is active?
To verify if a Preparer Tax Identification Number (PTIN) is active, you can use the IRS online PTIN system or call the IRS Tax Professional PTIN Information Line. Provide the PTIN number and the preparer’s name to confirm its validity and active status.
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Sarah Lamond is a Consulting CFO with TGG. She focuses on improving company’s operating performance through strategic analysis of financial and other operating data. As a CFO, Sarah is responsible for developing financial and operational strategies as well as relying on metrics to maintain or improve business performance along with building relationships with clients. Her goal is to drive revenue and profitability for her clients while still providing insight, guidance, financial foresight and industry experience.
