An accountant is extremely vital to your real estate business. If your accounts are not managed properly, you will end up losing a lot more than you gain. The right CPA (Certified Public Accountant) for your business is like a new business partner, he will give you the right advice to make your business grow exponentially and will manage all your accounts perfectly. He should be a person whom you can trust with all your finances.
Here are some of the best tips to keep in mind when looking for an accountant for your real-estate business.
- Background Check
It is the first and most important thing that has to be done before choosing a CPA for your real estate business. This is important because the person will be dealing with all the financial records of your firm. You will have to ask the following questions:
- How many years of experience do you have in accounting?
- What is your accounting specialty?
- What type of businesses do you typically work with?
- Do you work alone or do you work for a larger CPA firm?
- Are you a CPA? If yes, then which is your field of specialization? (It is not essential for your account to be a CPA but it is always a bonus and an added advantage)
If the answers satisfy you and indicate truthfulness, then the person can be trusted. It is important that an accountant is be able to break down complex issues in simple language and also communicate well with you and your employees. Quick response to your emails, messages, and phone calls is also a quality, you are looking for in your CPA.
- Research Credentials
It is mandatory that you research the credentials and accreditation of the accountant thoroughly. Many people pass the CPA exam but don’t have any experience in the field, causing a lot of problems for your business. People who have gone for their accreditation even after passing their CPA exam means they are committed to learning, and will be good candidates for your business.
- Setting Proper Expectations
It is important for you to let them know about your expectation of them in the initial interview. You can ask questions about the cost of services to be paid, if there will be anyone else who will be handling the books of your business, whether he will be able to help you in saving taxes, can he give any references, and so on.
- Field of Specialization
It is important to know the field of specialization and the type of field in which the accountant has worked earlier. If the accountant has worked beforehand in the real-estate field, it tells you that they have faced the problems of this field before and know how to deal with them in an efficient manner.
- Look for Referrals
If you have connections in the local real estate market, then ask for referrals of the accountants. If they have a good CPA and have a good reputation in the market, then they shouldn’t have any problem passing this information along. The local market may also tell you which people not to use, which is also valuable advice for your business.
Apart from the referrals, you can also look for online reviews when it comes to hiring CPA. You will be able to see the rating of the independent sites of the CPA’s, you are planning to hire. It will also help you in creating a view about your CPS based on the previous reviews and clients with whom they have worked with. You will be able to see recommendations and red flags along the way and build a true opinion, which will give you clarity in your hiring process.
Don’t Rush into Hiring Your CPA
Hiring a CA and specifically a real estate accountant for your business is very crucial like choosing the right business partner and you should not rush into the process. The secret lies in the details. You need to thoroughly interview your accountant and should feel trustworthy of the person and should have all the doubts cleared beforehand. You should sort through your different options and make the best possible choice.