Finding a Good Accountant

The right accountant can minimize your tax bill and find ways to save you money throughout the year. But what makes a good accountant — and where can you find one?

Don't waste your time with the Yellow Pages or the Internet. Instead, use your networking skills and talk to others about

Once you've compiled a list of prospects, interview them. Structure your questions carefully and consider these issues:

Small business focus. Look for an accountant who has worked with businesses similar to yours. Ask your prospects to describe their client base in terms of income, assets and business type. An accountant who performs wonders for a restaurant owner may not work the same magic with your antique dealership's bottom line.

Tax focus. Your accountant should know small business tax law inside and out and keep up with frequent tax law changes.

Service. A human calculator won't help you much. You want an accountant who's willing to get to know your business and its particular needs — not someone who just completes forms, files your information away and forgets you. Hire someone you'll feel comfortable calling for advice.

Fees. Ask your prospects for their hourly billing rate and what they expect to charge you for specific tasks, such as completing annual tax returns, helping with payroll issues and preparing financial reports.

Insurance. Make sure you hire an accountant that carries liability or errors and omissions insurance. This will compensate you for damages if your accountant makes an error.

References. Have each accountant provide you with names and phone numbers of three former or current clients. Contact each reference.

Communication. If you can't understand an accountant's jargon, it's a pretty safe bet you're never going to understand what he or she is doing with your tax return.