When choosing a business accountant, ask about credentials, experience, and the services included in the engagement. Henriquez Accounting & Tax Services offers bookkeeping, tax preparation, and advisory support. Pedro Henriquez’s U.S. tax credential is Enrolled Agent; his CPA license is from the Dominican Republic, not a U.S. state CPA license. Explore our Bookkeeping, Outsourced Controller/CFO, Tax Preparation, and Business Consulting.
Table of Contents
Understanding Business Accountant Credentials
- Recognized credentials: An Enrolled Agent (EA) credential is issued by the IRS. A U.S. Certified Public Accountant (CPA) license is issued by a state accountancy board; verify the license jurisdiction and current status.
- Ethics & continuing education: Continuing education and ethical requirements depend on the credential and licensing authority.
- Representation rights: Eligible EAs, U.S.-licensed CPAs, and attorneys have unlimited representation rights before the IRS, with appropriate client authorization. These rights do not establish authority to perform CPA audit or assurance services.
- Process & controls: documented monthly close, workpapers, and data-retention policies.
- Security posture: secure file exchange, multi-factor authentication, e-file controls (EFIN), and least-privilege access.
Services to Discuss with a Business Accountant
- Lower risk: accurate coding, reconciliations, and documentation that stand up to scrutiny.
- Eligible tax items: Review deductions, credits and elections under the applicable tax-year rules and your circumstances; eligibility and outcomes are not guaranteed.
- Clean estimates: review quarterly estimates and payment requirements based on available records; projections do not guarantee that penalties will be avoided.
- Decision-grade reporting: timely P&L, Balance Sheet, Cash Flow, and KPIs—every month.
- End-to-end support: from cleanup to agreed return preparation. IRS notice representation requires appropriate taxpayer authorization. State-agency notice assistance or representation must be confirmed separately under that agency's rules and the engagement scope.
Our Cadence (Month–Quarter–Year)
Monthly
- Reconcile bank/credit/merchant processors; clear Undeposited Funds and suspense.
- Deliver statements and KPI snapshot; lock prior periods.
- AR collections cadence; AP batching/approvals; update the 13-week cash forecast.
Quarterly
- Estimated tax projections & vouchers; payroll/sales tax reviews.
- KPI review: margins, runway/DSCR, DSO/DPO/DIO; pricing checkups.
- Entity and compensation tune-ups (e.g., S-Corp reasonable comp) where applicable.
Annually
- 1099-NEC/1099-MISC e-filing; fixed-asset roll-forward & depreciation.
- Business/owner returns and year-end tax strategy for the next year.
Security & Compliance You Should Expect
- Secure portals: encrypted file exchange and e-sign workflows (no sensitive info via plain email).
- Access controls: MFA, role-based permissions, device policies, and documented offboarding.
- E-file governance: controlled
EFINusage and audit trails for submissions. - Data retention: retention schedules and safe destruction for expired records.
How to Verify a Business Accountant
- Ask which credential they hold (EA/CPA) and confirm current standing with the appropriate registry or board.
- Request CPE highlights for the past year and a summary of their security practices.
- Confirm written scope, deliverables, response times, and pricing before work begins.
Common (Costly) Mistakes We Fix
- Late/incorrect quarterly estimates → penalties and interest.
- Entity or election issues → review eligibility, deadlines, compensation, costs and the available remedies; an S corporation is not always the appropriate choice.
- Unreconciled accounts and weak documentation → missed deductions and audit risk.
- Sales/use tax and multi-state issues for e-commerce → surprise liabilities.
Rule of Thumb: If your accountant can’t explain their credential, security controls, and close cadence in writing, keep looking.
Business Accounting Deliverables to Confirm
- Accurate books and reconciliations—every month.
- Quarterly tax projections and on-time vouchers.
- Return preparation: 1120S/1065/1120 and 1040/Schedule C/E, plus 1099 filings.
- Owner dashboard: margins, cash runway, and tax-ready KPIs.
- Secure portal and e-signature processes as agreed. IRS notice representation requires appropriate taxpayer authorization. State-agency notice assistance or representation must be confirmed separately under that agency's rules and the engagement scope.
FAQs
What’s the difference between an EA and a CPA?
EAs are credentialed by the IRS for federal tax practice. U.S. CPAs are licensed by state accountancy boards and may provide accounting, tax, and assurance services subject to applicable licensing requirements. A foreign CPA designation does not itself establish U.S. CPA licensure. See the IRS guide to preparer credentials and representation rights.
Do credentials guarantee tax savings?
No. Credentials indicate professional qualifications, not a guaranteed tax result. Eligibility for deductions, credits, and planning options depends on your records, circumstances, and applicable tax rules.
How do I know my data is safe?
Ask the provider about the approved transfer method, access limitations and retention practices. Confirm the controls used for your engagement before providing sensitive records; no provider can guarantee that every security risk is eliminated.
Can you work with my existing bookkeeper?
Yes. We often handle tax strategy/returns and controls while your internal or third-party bookkeeper manages day-to-day coding—then we review and close monthly.
What will onboarding look like?
We begin with a records and access checklist, then agree on the scope and schedule. Cleanup timing depends on transaction volume, missing records, and prior reconciliations. Recurring reporting begins after setup and cleanup are complete.
Ready to discuss year-round accounting support?
From monthly books to quarterly estimates and year-end returns, we help organize records and review reporting needs within the agreed service scope. Talk to an Enrolled Agent today. Schedule Consultation