How to select a Schaumburg CPA:
A Certified Public Accountant (CPA) is a person who has met the requirements of state law and has been issued a license to practice public accounting by the Board of Examiners.
Only persons who are licensed by the Board may call themselves a Certified Public Accountant.
Schaumburg CPAs are required to complete appropriate continuing education in order to be eligible to practice public accounting. A licensee who completes the required continuing education is renewed as “active.” A licensee who does not complete the required continuing education is renewed as “inactive” and may not practice public accounting.
Word-of-mouth referrals from individuals who have used the services of a particular CPA are probably the best way to select a CPA in the Schaumburg area.
When selecting a Schaumburg CPA, you should consider the following:
Interview the prospective CPA either by telephone or in person. A common inquiry is “what type of accounting work do you typically perform?” Compare the CPA’s experience to your service needs.
Ask about the office hours of the CPA; is the office located in Schaumburg; determine whether the office is open year-round; inquire if the CPA is available to take telephone inquiries. Ask what type of continuing education the licensee has taken recently.
If the services you require include either reviewed or audited financial statements, ask the CPA if he or she participates in a peer review or quality review program? If yes, ask the year and month – and the result – of the most recent review.
Some Schaumburg CPAs are authorized to perform a full range of accounting services including signing reports on attest engagements. Attest engagements include an audit, a review of financial statements, or an examination of prospective financial information. Others will be authorized to perform a full range of accounting services, including accounting, compilation preparation, management advisory, financial advisory, tax and consulting services, but will not be authorized to sign reports on attest engagements.
Be aware that if your Schaumburg CPA prepares your tax return and offers you a Refund Anticipation Loan (RAL), the CPA must comply with disclosure requirements specified in the Accountancy Act and Accountancy Regulations. An RAL is a loan that allows a taxpayer to borrow against an anticipated income tax refund. These loans actually are made by banks, but are frequently offered by tax preparers including CPAs in conjunction with preparation of the tax return. While these loans are most frequently described as an instant tax refund – as if they come directly from the Internal Revenue Service – they are in reality short-term loans that often have very high costs associated with them. Both the tax preparer and the lending institution often take commissions against the calculated tax refund – so the RAL is less than the amount of the actual tax return refund. CPAs offering RALs are required to make specified written disclosures to consumer, including the dollar amount the CPA will receive for facilitating the loan. These disclosures must be made at or before the time of making the referral to the lender or performing other activities to facilitate the loan. These disclosures must be made at or before the time of making the referral to the lender or performing other activities to facilitate the loan, regardless of whether the taxpayer actually accepts the loan.
Before any work is done by the Schaumburg CPA, it is important to make certain that you receive an engagement letter detailing the work to be performed for you, who will specifically be performing the work, including whether the work is outsourced, confirming that all private and personal information is secure, and specifying the cost of the services.
(This article provided courtesy http://www.schaumburgcpa.com and Nick Nichols, http://www.nicknichols.com)
