CPA firms can be stressed with a surge of work, the so-called "tax season pressure". In order for firms not to let down their existing clients, they can choose to bring in new tax professionals on a contract basis to ensure deadlines are met. For CPA firms considering hiring a tax preparer, they should assess that person's experience credentials, technological ability, availability , security protocols, and overall value. The right kind of questioning during the interview makes the whole process more efficient, enabling finding a candidate who can be trusted to work independently and still be compliant with the firm's standards.
Whether you want to hire a full-time employee, contract professional, or a tax preparer for hire, asking the right questions during their interview could lead you to the perfect fit. What comes next are 10 useful questions you can ask a prospective tax employee to get to know them better, find out how good they would fit in your organization, and ultimately come to a better decision in selecting the right person for the job. We recommend you not just ask these questions mechanically but rather use them as a starting conversation for your potential new hires.
Why CPA Firms Need the Right Tax Preparer
Someone working as a tax preparer may have the chance to touch sensitive financial data and be directly involved in creating those tax return documents that determine the amount of taxes due for clients. Hiring a candidate with inappropriate qualifications and abilities in the area could mean not only bringing about client problems and non-compliance concerns but also result in the need to redo work, a loss in efficiency due to missed time targets, and ultimately client dissatisfaction.
To identify the best possible candidate for the job, CPA firms should look at:
- The person's expertise in tax matters
- The individual's professional and work history
- The worker's proficiency in tax softwares
- Their capability to be thorough, detailed, and methodical
- Their ability to express and convey ideas to others
- The candidate's record of handling confidential and secret information
- Their commitment and hours availability during the busy season
- Their capability to be a good multi-tasker, i.e. working with several clients at the same time
- Their knowledge on the current state of tax laws
- Their overall employment and hiring expenses
10 Questions to Ask Before Hiring a Tax Preparer
These are the Top 10 Questions to Ask Before Hiring a Tax Preparer:
1. What types of tax returns have you prepared?
Find out what the applicant's real experience involves. Ask if they have done taxes for individuals partnerships S corporations, C corporations trusts estates, or other types of returns that are relevant to the client base of your firm.
A person who has worked with similar types of tax returns as your firm handles usually needs less time for training and calls for less supervision.
2. Do you have the proper tax credentials?
Find out if the person has any certifications, degrees training, and professional registrations. For some positions, it would be acceptable to consider a candidate who is a CPA or an Enrolled Agent, or an experienced tax practitioner who satisfies the relevant requirements.
Having qualifications and certifications does not mean that a person is necessarily able to do very good work but such credentials are the best indication of knowledge.
3.Do you know how to stay up to date with any changes in the tax law?
The tax laws are being constantly updated.
Enquire about how candidates update their knowledge and skills on the latest tax legislation.
Look for signs such as:
- Continuing education
- Tax research activities
- Subscriptions to journals
- IRS notifications
- Training sessions specific to the industry
- Tax software updates
4. Which tax software and accounting platforms can you use?
In order to increase your staffs' productive capacity, a certain basic knowledge in handling technology will be a great help. So, for the tax software that your organization uses, ask them for their experience in its use, as well as the accounting systems, document-management platforms, and communication tools. Overall if the candidate is in the know about your technology stack, then he is most likely to be a quick learner which can result in faster onboarding.
5. Can you describe how you check your tax return in detail before submitting it?
The main goal here is to have a tax return that is free from any mistake, so ask the interviewee to explain in detail the steps they take during the review, how they identify and correct the errors, locate the missing data, detect inconsistencies, and flag unusual transactions.
A good response will show off the interviewee's thoroughness and not just their familiarity with computer programs.
6. How do you deal with difficult or unknown taxation related problems?
A certified tax return preparer cannot be expected to know all tax matters.
The main thing is how a certified tax return preparer would tackle an unfamiliar situation.
Acknowledge that candidates will make mistakes so ask:
How do they:
- Carry on research in a systematic manner
- Consult recognized and authoritative sources
- Make a record of the decisions drawn
- Handle issues that are beyond their expertise
- Explain the nature of their uncertainties
This question will help the employer assess the candidate's decision-making ability and how open-minded they are in asking for someone else's help.
7. How do you protect confidential client information?
Tax preparers deal with the very personal and financial information of customers. They should be asked how they protect against things like password security, secure file sharing, access controls, phishing, and confidential document handling.
Through this, your firm should gain comfort that the preparer actually has a firm grasp on and understands the necessity of the protection of client's data.
8. Will you be available throughout Tax Season?
The availability of a Tax Preparer needs to be in sync with the working pattern and capacity of the firm. It is quite reasonable to ask about such details as when they work, what is their seasonal involvement, when will the work be concluded, and what will be the average turnaround time of the work.
This can be more critical if you are planning to get a seasonal Tax Preparer for Hire, because in this case your decision mainly depends on whether the person is available or not during a period when your business gets busy.
9. How much will it cost to hire you?
Talking about money is an essential part of making the best hiring choice. The compensation package for tax experts can differ greatly based on a number of factors including but not limited to experience, the number of qualifications, location, the type of employment (full-time, part-time, seasonal or contract basis), the number of tasks assigned, and whether the candidate is a full-time employee or a temporary worker.
It is not a good idea to base your judgment solely on the wages per hour or per year that the candidates offer. Take into account the whole picture of value that they bring including their work ethic, experience the need for training and how far they can help lessen the team workload.
10. Why should your company hire me?
We would suggest ending the interview with the open question that enables the candidate to explain their main strength.
You should focus on the response that is showing:
- Experience with taxes
- Dependable and reliable
- Detailed-oriented
- Good interpersonal skills when dealing with customers
- Capability of doing things independently
- Willingness to learn
- Knowledge of the CPA-firm workflow
The skillset of the best applicant should match the requirements of your company so the candidate explains her/his experience directly and the company sees the match.
Getting started on the journey to discover the best tax preparer for your needs is simply a question of figuring out just what your business takes from such a person.
Don't let being the closest person decide who you choose from tax preparation service providers; rather, look at experience qualification availability, software proficiency, reference and communication.
Also consider the staffing options your firm has such as a local employee, a remote one, a seasonal preparer, or an outsource one. An expanded job hunt allows CPA offices to find experts with niche expertise while, in fact, providing the benefit of flexibility and more volume.
The final Checklist Before You get into Action
Before you finalize your choice, check:
- The person has experience related to the kind of tax preparation that you need done
- The person has the proper license and has joined the profession properly
- The person can use the tax program that matches your accounting or bookkeeping work
- The person is well aware of the latest tax laws in the areas that concern you
- The person's quality assurance system is thorough and well-documented
- The person has knowledge about data security protocols
- The person is reliable mainly during the busy tax season
- The person has given good references or can show past works if you need
- The person clearly has the idea of what his fees will be
- The person's communication and judgment are good enough so you feel comfortable to deal with him/her
Dedicating enough time for these evaluations is of great benefit in enabling a small business (for example, a CPA firm) to identify that one expert who would be both capable of doing their business' workload and also meet their standards of quality for every deliverable.
