What do I look for in an accountant?

My first criteria is you must feel comfortable with the person you choose as your accountant. A close second criteria is competency. A third criteria is cost. These same criteria also apply to a doctor or attorney or any other professional I might hire.

Accountants have much in common with doctors and attorneys. Some are generalists while others specialize in specific areas and they all charge varying rates. Your accountant should fit your needs.

Do I need a CPA?

A CPA is mandatory if you need audited financial statements. However, a CPA may not be the best choice for other areas; experience may be more meaningful. A CPA has passed a demanding set of tests centered around general accounting principles. If after obtaining his license he continues to work for an accounting and/or auditing firm, he likely will have very little ‘hands-on’ experience of running a business. He may never have faced the human resource problems a small business owner has had to face; never developed or administered a marketing plan; or sweat out making the next payroll for his employees.