Question: How Do I Check the Credentials of a Professional Advisor?
Before you hire an advisor, such as an attorney, tax preparer, CPA, or other licensed professional, you should always check credentials. Here is what you want to know about this professional:
- Most professionals are licensed to practice in one or more specific states, so you want to know if this person hold a current professional license in this state.
- You also want to know if there are any outstanding complaints against this person, either by the professional organization or by previous clients.
- And you want to know if the professional has any convictions relating to his or her practice.
Answer:
How to Check Credentials of a Professional Advisor
- Check license status, if applicable.
Check with the appropriate state professional regulatory agency. In many states, it is called the "department of professional regulation," but there might be one or more agencies handling different professions in your state. You need the website of the body which regulates this profession in your state, so you can see if the person holds a current license in the state and if there are any sanctions imposed on this person. For example, if you are checking on a CPA, you should go to the state CPA board of review.
- Check national professional standing
Find the national organization which oversees professionals in this area. For example, CPAs are part of the American Association of CPA's (AICPA); attorneys are in the American Bar Association (ABA). As an example, look on the AICPA website for disciplinary sanctions, to see if the CPA you are considering has any against him/her. - Check on sanctions
see if the person holds an active license and if there have been any sanctions against this individual.
- Check the IRS website.
Search to see if this tax preparer has been disciplined or convicted of fraud by the IRS.
- Check the Better Business Bureau website, to see if there have been complaints filed against this preparer.
Take the time to check out a prospective advisor thoroughly. Remember that you as the business owner are responsible for complying with laws, tax payments, and regulations, and getting bad advice does not excuse you from this responsibility.
