EA/CPA Real Estate Investing savvy needed

[Emil Kostov]

I got a problem...my CPA sux. I am new to the field and am still learning the ropes. Every time I need to ask her something she acts like I'm bothering her, ignoring my emails/texts, and I even started feeling uncomfortable approaching her. I don't feel comfortable with her negligence maybe because I'm less important client of hers, and basically I'm now struggling to get recommendations. I need help finding another one. Please advice! Thanks.

[Linda Weygant]

As CPAs, we differentiate ourselves based on customer service, our specific knowledge base and ability to communicate.  If you're not happy, you absolutely should look elsewhere.  But now is not the time to do that.  Anybody who has a great reputation and really knows their stuff is unlikely to take you on for an April 18 filing deadline.  

Here's my advice.

1.  Either suffer it out for one more season, then look for a replacement in the August to November time frame.

2.  Put yourself on extension for this year and engage with somebody else after April 18.  

Remember that an extension is an extension of time to file, not an extension of time to pay, so if you think you might owe, get a payment in by April 18.

Now, some insight - as a professional.

First of all, there is a severe shortage of tax professionals in the nation.  Approximately 12% of all tax professionals died, retired, sold their practices or otherwise exited the profession in the last 4 years.  In the next 5 years, it is predicted that another 17% will do so.  New college grads are not entering the profession fast enough to make up for the outgoing pros.  A friend who is a college professor said that not one single student at his college sat for the CPA exam in the last 3 years, if that gives you an indication.

What you've got now is a Wild West of tax "professionals" opening up shop.  In the industry groups, there are literally ads from influencers who are telling people they can open their own tax or bookkeeping firm - no knowledge necessary.  

So what you've got to choose from are people who just opened, have no knowledge and will literally throw crap onto paper and see what sticks vs older and, quite frankly, crankier professionals who are overworked and doing their best to serve ALL of their clients.

Secondly, there are ways you can be a better client and ensure that your tax pro pays attention to you.

1.  Do not ask questions related to next year during tax season this year.  There is plenty of time for planning in May through December.  January through April is never the time to ask "what if" scenarios that don't apply to the current year.  If you're in the middle of a transaction and MUST have their attention to make decisions, then be prepared to pay for a consultation.

1a.  When shopping for a tax professional, make sure they are open to educating you (based on your post, it sounds like that's what you want).  Some tax professionals are simply helping you with filing your taxed.  Others are business consultants and enjoy (and want to) train and educate their clients on everything from accounting to business management.  You may have a mismatch between your needs and what your CPA is willing to offer.  She may only want to help you with compliance.  

2.  Do your tax planning in October through December.  Do not ask your CPA what you can do/should have done to save on taxes for last year.  Other than contributing more to a retirement plan, that ship sailed as of midnight on 12/31.

3.  What clients think are "Quick Questions" seldom are.  "Is such and such deductible"?  The answer to almost every such question is "it depends..."  Asking us to get into the minutiae and the many If/Then logic loops associated with it is very time consuming.  Save up all your quick questions for one consultation.  

3a.  Be prepared to pay for consultations.  Make sure you are not demanding champagne level service, but only willing to pay based on a beer budget.  

4.  The corollary to #3 is there is no such thing as "Hopping on a quick call" or "I just need a minute".  Unplanned phone calls are the worst for hijacking productivity, trains of thought and efficiency.  Almost every tax professional I know has their phone ringer turned off all day and will return phone messages once or twice a day.  I myself almost never call my clients back.  I listen to their messages and then craft an email.  Why?  Because my clients need to refer back to my advice in writing later.  I also need a record of what I told my clients and when.  The number of times a client has started out with "you never told me ....: only to be shown an email that I did, in fact, tell them....

5.  Be organized.  When it's time for your tax pro to work on your return, have everything available for them.  If you're uploading, make sure all of your documents uploaded correctly and nothing is corrupted.  Make sure every document is available, legible, etc.  The more times your tax pro has to touch your file, the longer it takes and the more frustrated everybody is.

Generally speaking, when complaining about your tax professional, try to make sure that you are not actually part of the problem.  We all strive to provide excellent service, but we're also human.

And if your tax pro isn't replying to your outreach, then one of a few things is happening.

1.  They are prioritizing their work load.  They know what's in front of them and what is most important.  Sometimes, you aren't it.  

2.  They are overwhelmed.  Adding to that overwhelm by being demanding won't get you what you either of you wants.  Patience is key.

Best of luck to you as you move forward.