How do I find a good accountant?

May 8, 2008 5:08 AM

How do I go about finding the right accountant for my needs?

So I'm at the point in my life now where it would be wise to sit down with an accountant and talk finances. My goals in such a meeting would be to learn and discuss the following:

* different types of investments and their benefits;
* the Canadian tax process, and to potentially have the accountant take over my own taxes;
* running a home business, more specifically a web design business, so internet-savvy is a major plus.

First off, I'm in Ottawa, Canada, so if you know of this perfect accountant I would graciously request their details. However since this ideal accountant may not exist, how should I go about finding an accountant that's right for me? What items would I need to prepare before going to see one? I would also be open to book recommendations prior to meeting with the accountant. If you have any tips please do share!

posted by Meagan to work & money (5 comments total)

I think for investments you probably want a financial advisor. I could recommend ours, but he's a family friend so it feels a bit like a conflict. If you want the info, let me know. Financial advice is a very personal thing so you might want to ask around family / friends who you know better than me!

For an accountant, I highly recommend Craig Gordon at Cox, Merritt & Co. He came recommended by a friend for business accounting a few years ago and he has been very helpful, as have the other staff there that I've dealt with. This year my wife and I had him do our personal taxes as well and we were very impressed. We were late getting them stuff, but they got it done in a timely manner. No 4/30 rush to sign everything at the last minute as we had with our previous accountant. All charges have been reasonable and within line with their estimates.

I know some people think it's crazy to pay an accountant to do your taxes, but our experience - 2 people both with 'real' jobs and self-employment income - is that we saved money (even after paying them for the work) by having them claim things we didn't even know about. Add in the reduced time / anguish involved in not having to fill out forms and I think it's a really good idea.

They're out in Kanata very close to Scotiabank Place, so depending on where in the city you are it can be a bit of a trek to get there. Other than an initial meeting you can probably do most things by phone or email.

I ran a home-based web business for a number of years. Deciding whether to charge GST is up to you, but it depends on the amount of business / income you expect to have. My previous accountant recommended it as you can offset GST charged against GST that you spend on business expenses. If you're having a lot of startup costs for computer/printer/scanner/software + office furniture etc then it might be worth it. Whatever accountant you end up with can also talk you through claiming a percentage of your home as your office - what percentage is reasonable. You can then also claim any household maintenance costs against this.

To prepare for an initial meeting, just have an idea of what your business income might be in the coming year. Know how big your home is, and how much of it could reasonable be considered your 'office'.

The Entrepeneurship Centre can also be a valuable resource if you are just starting this business. They can hook you up with accountants as well.

If you have more specific questions, feel free to email (in profile) or mefimail me. I'd be happy to help. Good luck with your business!
posted by valleys at 6:03 AM on May 8

Your accountant and financial advisor should be two different people, for a variety of reasons. An accountant should be the person who is making sure your money is managed properly according to your direction- income and outlay going to the right places at the right times. A focused and attention to details kind of person. An advisor needs to be the person who thinks strategically for you. He reads the report from the accountant, analyzes it and tells you what to do to make the best use of the income. Sort of like the difference between an carpenter and an architect. Equally important, but different skill sets.
posted by gjc at 6:25 AM on May 8

I used http://www.myfinancialadvice.com to find an accountant/financial advisor to go through my 401k investments and do my taxes after a WSJ article on them two years ago. I've been going back to this person since and am highly satisfied.
posted by krautland at 6:26 AM on May 8

Oh, and how to find one- word of mouth is probably the best. Failing that, visit with a few people and have them give you a 5 minute dissertation on what their outlook is toward what they do. Pick who you like best.
posted by gjc at 6:29 AM on May 8

Definitely ask around. There are bad, good, and great accountants out there for what you need. Talk to prospective accountant before hiring!
posted by toaster at 7:51 AM on May 8