How do you find a tax guide? The Yellow Pages are replete with tax and accounting services, but how do you judge which one is the best for you and your dollar?

In a survey conducted by L&A, we found that the number one way individuals look for a guide is by word of mouth, which is incidentally also the first step in the best way to find a guide. But don’t ask just anyone. Start with people that are knowledgeable about your area and your type of business. Realtors and mortgage lenders often have a large client base and a broad knowledge of the businesses in your city.

Next, talk to the wealthy. The wealthy tend to have the best accountants and tax specialists on their side. If you yourself are wealthy but in need of a second or new opinion, then start with your friends of the same tax bracket.

Balance word-of-mouth reviews with direct research of the firms recommended to you. The Internet is the best place to start, since you will want a firm that is technologically up to date. If a firm is on the ball, they will provide helpful information about themselves and the services they offer online.

You may also want to visit the firm first. What is the atmosphere like? Do you think you will be able to establish effective communication with your prospective CPA?

Finally, how open is the firm about what it charges? Do they offer an agreed-upon amount upfront, or do they sticker-shock you at the end with a bill-by-the-hour model? The best accounting firms contractually agree upon the value of their work with the client before beginning the project.

An individual who pays taxes via a W-2 form represents a relatively straightforward IRS filing process. But what of those who have many investments as a mainstay of their income; run sole proprietorships; self-insure; drive extensively on their own gas without reimbursement from their company, or have a passion they seek to transform into a business, etc.? These variables lay the foundation for creative accounting, where both individuals and businesses can take advantage of the many laws designed by our government to encourage industry.

Admittedly, the wheels of government are greased for small business. Making a determination of whether you will save more money as one business type or another is a major component of creative accounting. Individuals can often maximize their tax deductions by setting up small businesses or transforming existing companies from one entity type to another. Talk to Lawhorn & Associates today if you feel you might be missing unexplored tax options for yourself as an individual and / or your business.