How to Know When Your New York CPA Is Not Working For You
People who require strategic tax planning appreciate the services offered by New York CPA over any other tax preparer. These include individuals with complex returns, small business owners, or people who pay high-income taxes and more. CPAs provide advice on the best strategies to take based on their experience and interpretation of the IRS rulings.When New York CPA files your tax return without providing strategic tax planning or advice, you’ll probably not get your money’s worth.
Here are red flags to watch out for:
They probably aren’t a CPA
A Certified Public Accountant has to have a bachelor’s degree in finance or management, accounting and also sit for rigorous exams on business environment and concepts, auditing and attestation, regulations and financial accounting and reporting. Practice requirements state that the CPA must work under a practicing New York CPA for a period of time. Their experience and expertise demand high fees because their knowledge base and expertise is high.
They may not be licensed
Your CPA may have passed all the exams but are they licensed and is their license up to date? You need to double check that your New York State CPA has an active and current license. You can determine this from the licensing board. CPAs also have to complete 120 hours of continuing education every three years.
They are not doing strategic planning
A professional New York CPA should do strategic planning and involve you throughout the year and not just during tax time. The strategic planning should be ongoing and not only filling out and filing the tax return. You are paying for the advice relationship, and they should be providing advice on things like monitoring your investments, keeping current on upcoming tax legislation and more.
They are charging you twice
CPAs are business professionals, and they work to earn a living as they grow their practices. They will consider ways to add more income if there are. When they charge a fee for their tax services and a separate fee for investment advice, which is okay. But if they demand a commission for the sale of investment products, then they are charging you twice. It is either they receive a commission from the sale of an investment product or a fee for investment advice but not both. Your New York State CPA should provide a financial plan, and they can only charge for and manage your investments if they are registered with the financial industry regulatory bodies. Before paying more, you should run a broker check on them to confirm if they are licensed investment professionals.
If you own a business, or you have complex investments, it may be challenging to manage the complexities and deductions, and a CPA can help with smart tax moves that can streamline your taxes. You can find a professional New York CPA by getting a referral from friends and acquaintances. A certifying body can also be an excellent place to check for CPA experts with experience and their specialty. No matter who you choose to manage your taxes, you have to make sure that they give you the services you are paying for.