Red Flags That an Accountant Is Bad

When it’s time to do your taxes, whether it’s for yourself or your business, you have to be on the lookout for unqualified accounts. Here are a few warning signs that should throw up red flags when hiring an accountant to handle your finances.

Top Warning Signs of a Bad Accountant

Doing your taxes can be difficult, especially if you run your own business and want to get the most return on your money. This is why people search for Las Vegas accountants or CPAs in their area. However, not all accounting firms or individuals are always the right fit to handle your money. Here are a few things you should be on the lookout for when it’s time to hire someone to do your taxes.

Encouraging Fraud

Everyone wants to get a lot of money back on their taxes, but there is a right and wrong way to go about this. Accountants who encourage fraud could end up getting you into the IRS audit pile. Unless you want to spend time gathering up seven years’ worth of personal records, steer clear of any accountant who tries to get you to break the law.

Profit Sharing

Most trustworthy accounts base the work that they do on standard fees. This means that they will receive a standard fee no matter how much money you get back on your taxes. Warning flags should go up if you come across an accountant who wants to base the fees on a sliding scale so that they make more money along with you. Accountants who have this kind of policy often look for ways to earn you more money whether it’s legal or not.

Look for Credentials

When it comes right down to it, you want to look for accountants who can back up what they say with credentials. Anyone can make a promise, but a trustworthy accountant will have proper credentials in the form of a Preparer Tax Identification Number. Many will also have a ranking with the Better Business Bureau where you can see reviews from previous clients.