Do I Need a C.P.A ?

[james]

This concerns having a C.P.A. for on lines businesses, but maybe it should be under the 'General'
headings.
Anyhow, everything I've ever read about owning a business includes a section about the things a C.P.A. can do for you, how invaluable their advice can be in running your biz., etc.

I had my 1st interview with one this week - he filled the criteria in that he works with very small businesses,
family owned things & so forth.
I told him I was in negotiations to buy a site, if it did or didn't work out that I would pursue other opportunities and would probably end up owning more than one.
I guess I expected a modest sales pitch about what his firm could does for his clients and what he might possibly do for me - maybe a few examples.

But I didn't hear a thing said that any bookkeeper couldn't do.
Even though I live in a large city, I don't really expect to find a C.P.A. that actually has a list of web site owners for clients (I live in Dallas, Tx. if anyone has a recommendation), but I did expect an insight or
two on what they could offer beyond bookkeeping.

This was my first interview, but I'd like to know if you pros have found C.P.A.'s useful, or if this area is
so relatively new that the majority of them really don't have the background for it

[ClaytonL]

I'd like to hear a good response to this as well.

[Clinton]

james, it depends on how much you see yourself making over the year. The higher the earnings, the greater the value of a good accountant.

That said, it took me a long time to learn that accountants don't work for the business paying their fees. They work for themselves first ...and for the Inland Revenue after that. Their top priority isn't saving you tax, it is covering their ass.

In my early days of running my own business, I just let my accountant take decisions for me, and just signed off whatever figures he drew up. Now it's a different story. Every year we negotiate - yes, negotiate - about the shape and colour of the final accounts and the balance sheet. When we finally agree he puts his signature to it.

As I happen to have an accounting background I can argue with him about technicalities of presentation, what need not be officially disclosed in the covering statements, about interpretation on rules for depreciation and what caveats/disclosures in the final account docs keep him safe while still meeting my requirements. That's what happens with large companies - they have external auditors to rubber stamp the accounts and meet regulatory requirements, but they have internal accountancy professionals to draw up the figures in the first place. The former "work for" and are accountable to the tax authorities. The latter work for and are accountable to only their employers.

The summary is that whoever you use, be prepared to get dug in yourself if you want maximum benefit and minimum tax.

[DomainMagnate]

It may vary in different countries and based on your level of income, but generally if you are asking yourself this questions - then usually you do need an accountant. I made many mistakes when starting my business, if I had an accountant since the beginning it could've saved me tens of thousands of dollars I otherwise had to pay in taxes.

My accountant had no other clients with similar web businesses, so I had to explain him everything at first, but it was actually for the best since I could also learn in the process how basic accounting works and all that can be done to reduce taxes. I like how my accountant usually explains me the choices and advices on best decisions.

Having an accountant is costly though, if you have some basic background in this or are willing to learn you can probably do it yourself at the beginning.