Here’s what we have on deck today:

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📗 Read: 6 Lessons to Find a CPA that Saves You Thousands

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📺 Watch: The Complete Guide to SPY

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🎙️ Listen: The Mega-Back Door Roth IRA

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6 Lessons to Find a CPA that Saves You Thousands

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6 Years ago, I found my dream CPA.

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We go together like Batman and Robin. Peanut butter and Jelly. Magic and Kareem. Sonny and Cher.
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Not only do we have the same philosophies when it comes to money, but he and his team are also extremely detail-oriented.
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Oh yeah, and they save me tens of thousands every single year.
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So, if you don’t have what I feel is the most important financial team member in your corner, here are my lessons on how to find your dream CPA.

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Lesson #1: Find someone who fits your financial lifestyle

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The #1 key to finding the right CPA fit is to make sure they fit your financial lifestyle.
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If you are a Real Estate investor, you need a CPA who understands how to handle real estate investments.

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If you are a small business owner, you need a CPA who understands your business needs and puts a tax plan together for your industry.
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If you work a 9-5, you need someone who can find deductions that can help you get above the standard deduction. If they can’t, your tax plan better be cheap.

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This is imperative to make sure you save the maximum amount you can when it comes to your taxes.

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Lesson #2: Make Sure They Have a Strategy

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I have two words for you. Tax Plan.

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Wealthy people have one, but the middle class do not have one.
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Why?
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Taxes are everyone's biggest expense, yet it is probably the most neglected.
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Ask your potential CPA what they do in order to put together your tax plan. They should be asking you questions about your financial goals, dreams, and what you want to do with your money.
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If they don’t offer this service you need to find another option. Tax strategy is how you win when it comes to saving on taxes.

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Lesson #3: Ask for References from your Network ​
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This is a 3-step system.
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1. Ask for references
2. Trust
3. Verify
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Ask your network who they use. Ask what they like, but more importantly what they don’t like about their CPA. Then you want to interview the candidates that have raving reviews from your network.
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If you are a real estate investor, ask your real estate friends. If you are a business owner, ask your business network.

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Lesson #4: Don’t Search During Tax Season

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Most CPAs work 80 hours a week during tax time. This usually starts in January or early February and ends in May.
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You want to avoid interviewing during this time (which is why I am writing this now).
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They will have much less time to give you details when they are neck-deep in tax documents.
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Lesson #5: Interview 3-5 to see how they operate

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Start interviewing your candidates.
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Schedule in-person meetings if possible so you can see the office and meet the team. I prefer smaller firms because you pay more attention to detail.

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Ask them a slew of questions. Here are a bunch to reference:
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Background & Experience

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• How long have you been a practicing CPA?
• What industries or sectors do you specialize in?
• Can you describe your typical client profile?
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Services & Expertise

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• What range of services do you offer? (e.g., tax planning, auditing, business consulting)
• Do you have experience with situations similar to mine or my business's?
• Are you familiar with the tax regulations and financial nuances specific to my industry?
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Communication & Availability

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• How often will we meet or communicate?
• What's your preferred mode of communication with clients?
• How quickly can I expect a response to an email or phone call?
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Fees & Charges​
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• How do you structure your fees? Is it hourly, fixed, or retainer-based?
• Are there any additional charges I should be aware of?
• How often will I be billed, and what are the payment terms?
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Client References

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• Can you provide references from clients with similar financial situations or from the same industry as mine?

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Software & Technology

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• What accounting or tax software do you use?
• Do you use any online platforms or tools that I would have access to?
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Data Security

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• How do you ensure the confidentiality and security of your client's financial data?
• Do you have any cybersecurity measures or protocols in place?
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Planning & Strategy

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• How do you approach tax planning to maximize deductions and credits for clients?
• Can you assist with long-term financial planning or retirement strategies?

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Team & Resources

• Will I be working directly with you, or will there be other team members involved?
• Do you collaborate with other professionals, like financial advisors or attorneys, if the need arises?

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Handling Discrepancies

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How do you handle situations where there's a disagreement with the IRS or state tax authorities?

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Have you ever represented a client in a tax audit? If so, what was the outcome?
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Future Outlook

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How do you see the future of the accounting industry, especially with technological advancements and changing regulations?
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Personal Touch

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What sets you apart from other CPAs?

Why should I choose you as my CPA?

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Lesson #6: Use the CPA Checklist below

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Use the checklist below to help guide you through the process.

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✅ The CPA Hiring Checklist

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📋 Understanding Your Needs

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• Define the primary purpose: Tax planning, business consulting, auditing, personal financial planning, etc.
• Decide on the preferred mode of communication: In-person, remote, or hybrid.
• Determine the frequency of meetings or consultations.

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🔍 Research & Recommendations

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• Ask friends, family, and colleagues for CPA referrals.
• Check online platforms like LinkedIn, Yelp, and industry-specific websites for reviews and recommendations.
• Browse the American Institute of CPAs (AICPA) directory or state CPA societies for potential candidates.

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✅ Qualifications & Credentials

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• Verify the CPA's licensing status in your state.
• Check for any additional certifications or specialties relevant to your needs.
• Research any potential red flags or complaints against the CPA.

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🤝 Initial Interview

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• Schedule interviews with at least 3-5 potential CPAs.
• Prepare a list of questions related to their experience, expertise, and client portfolio.
• Discuss their fee structure: hourly rates, fixed rates, retainer, etc.

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📞 Reference Checks

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• Ask the CPA for at least 2-3 client references.
• Contact the references to inquire about their experience with the CPA, reliability, and professionalism.

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📅 Availability & Accessibility

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• Confirm the CPA's availability, especially during peak tax seasons.
• Determine their response time to emails, calls, and urgent queries.

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🗣 Communication Skills

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• Assess the CPA's ability to explain complex financial matters in simple terms.
• Ensure you feel comfortable asking questions and discussing your financial concerns.

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📜 Engagement Letter Review

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• Request an engagement letter detailing the services, fees, and terms of agreement.
• Thoroughly review the letter and seek clarification if needed.
• Sign the engagement letter once all terms are agreed upon.

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🔄 Ongoing Engagement

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• Stay proactive in providing all necessary documents and information to the CPA.
• Regularly review financial statements, reports, and other communications from the CPA.
• Schedule periodic check-ins or meetings to discuss any changes or updates.

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🔄 Periodic Assessment

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• Annually review the relationship and services provided by the CPA.
• Determine if there's a need to renegotiate terms or seek a new CPA based on evolving requirements.

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📌 Note: Remember, hiring a CPA is a crucial decision that impacts your financial well-being. Ensure you invest time in the selection process and choose someone who aligns with your financial goals and values.

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👍 Money Finds

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20s Splurge & Debt 😬

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In a candid article on The Cut, a writer reflects on their financial journey, detailing how excessive spending in their 20s led to a challenging debt situation. The piece serves as both a cautionary tale and a guide, offering insights and advice to younger readers about the importance of financial discipline and planning.

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Inflation & Lifestyle Creep 📈

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​Vox dives into the phenomenon of "lifestyle creep," where as one earns more, their expenses proportionally increase, often negating the benefits of a higher income. Coupled with rising inflation, this can strain budgets and financial goals. The article gives advice on identifying and mitigating lifestyle creep and strategies to stay financially grounded amidst inflation.

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Student Loan Forgiveness 🎓💰

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​NPR covers the latest developments in student loan forgiveness and repayment schemes. As student debt remains a pressing issue in the U.S., the piece sheds light on the current state of loan forgiveness programs, their potential benefits, and how eligible students and graduates can best navigate these opportunities.

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High-Performance Book Club 📚

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I get a ton of questions from listeners and readers as to what I am reading. So we decided to let you know via the newsletter. The High-Performance Book Club will be a way to share this. If you want to be Elite in your career, business, or with your wealth, then welcome to the club. If you would like to see our previous picks, you can find them here.

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​​https://kit.co/MasterMoney/high-performance-book-club/the-fit-position-a​

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Also, I joined the authors of this book Brandon and Dave, on their podcast and we recorded two episodes. You can check them out here and here!

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​The Mega-Back Door Roth IRA (How to Get an Extra $43,500 in Your Roth!)​

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​How to Save for Short Term and Long Term Savings Goals (Money Q&A)​

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Youtube

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SPY VS VOO: Which ETF IS Better?

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