Do you need 2 accountants?

Some professionals feel that using the same accountant to do both business and personal tax work may not be appropriate. But is that what the professionals believe? We asked our experts for their opinions.

"I would certainly advise that only one accountant be used for both business and personal purposes," says CPA Carol Katz. "This is because the two are invariably intertwined. Year-end business planning impacts personal tax situations and vice versa. In addition, as a practice grows, the accountant can advise and assist with additional services, such as pension planning, estate planning, and buy/sell planning."

"There are very real economies gained by having one accountant serve as both the business accountant and the owners' personal accountant, especially if the business is operated as a sole proprietorship,

S-corporation, partnership, or LLC," says CPA Vincent DiAntonio, Jr.

He continues, "Since the income tax burden for these types of entities is usually borne solely by the entity owners, decisions made at the business-entity level almost always have consequences (especially tax consequences) on the personal level. It is extremely important to coordinate such business decisions with the owner's personal situation and having one accountant definitely simplifies this process."