Guide to Working Effectively with Accounting Firms and CPAs

Coordinate your accounting software

Find out what kind of software your accountant uses and consider investing in the same program. That way, you can easily share information.

I recommend: Major accounting software providers, such as Quicken, offer professional versions for accountants and scaled-down versions for small business owners.

Tax planning

Involve your accountant in your business planning all year long, not just at tax time. He or she can advise you on business decisions that will have an impact on your taxes.

I recommend: KPMG and Deloitte are full-service accounting providers that go beyond simple tax preparation.

Business consulting

Your accountant can be a trusted consultant in many areas. For instance, talk to your CPA if you're trying to decide whether you should lease or buy equipment, you're looking for a new inventory control system or you're wondering if you should hire a full-time employee or an independent contractor.

I recommend: Among its many accounting services, PricewaterhouseCoopers provides advisory services to private businesses.

Retirement planning

Considering that your personal income and your business grosses are tightly linked, it's a good idea to seek advice regarding your personal finances. Accountants can often make recommendations on various types of retirement plans suitable for small business owners.

I recommend: Your accountant should be able to direct you to retirement plans for small businesses, such as those from Fidelity.

Have them handle your bills

Bustling small businesses may want to turn over business bill-paying duties and payroll check writing to an accounting firm. Many firms offer this service and will keep meticulous records of all business expenses to ease tax preparation.

I recommend: LedgerPlus.com, which specializes in accounting services for small businesses, provides payroll services in addition to other accounting services.

Keep receipts organized

If you only visit your accountant around tax time, help make things go smoothly by getting your financial paperwork organized before you hand it over to an accountant.

I recommend: Develop a simple filing system with supplies from Office Depot to keep your receipts and paperwork in order.