Whether you're an individual wondering how to manage your retirement portfolio, or a small business owner confused about how tax laws apply to you, you're probably thinking about hiring an accountant. How do you find the right accountant for your situation? How do you avoid hiring someone that doesn't have the necessary credentials to meet your needs?

The first thing to look for is if the accountant is a certified public accountant (CPA). These professionals have been required to earn at least a Bachelors degree, or a Masters depending on your state, with extensive coursework in accounting and finance. Following graduation, they must work directly under a CPA, performing both tax and audit functions. There is also a continuing education requirement for CPAs, meaning they'll be going to conferences and seminars often to make sure they keep up with changes in national accounting policy. In other words, a CPA has to have a lot of knowledge.

However, don't just assume a CPA can meet your needs simply because they're a CPA. First of all, the"public in certified public accountant means that these professionals are able to do accounting work for public companies, and can audit companies. If you're an individual, or own a small, private business, this doesn't apply to you. Depending on their specialty, a CPA may still be able to help you, but there are other accounting and finance professionals who may be more attuned to your needs.

Determine your needs, and ask the accountant about their qualifications. For example, if you own a small, private business, you want an accountant that has experience working with small business owners. If you're an individual needing help with your savings, you may not even need an accountant. Instead, you can look into hiring a financial planner. Many certified financial planners (CFP) also hold a CPA, making them especially knowledgeable in both finances and accounting regulations.

An important thing to remember is not to hire someone just because they're a friend or a friend of a friend. Maybe they have a CPA, maybe they're an accounting clerk, whatever the case, there's a real possibility that they do not specialize in the area you're seeking help on. Remember, tax law, finance, auditing, and accounting regulations are all vast and complicated areas. For someone to be an expert of any of these takes time and effort, and no one can be an expert on everything.