Tax Preparation and Accounting in Charlottetown

Define the assignment before comparing providers

Write a brief describing your business, the period you want covered and the records you can provide. Specify whether you need return preparation from completed books, correction of incomplete records, ongoing accounting or financial statements. Ask each provider to quote against that brief and identify the deliverables they will supply.

Send the accountant the exact wording of any financial statement request from a lender or another recipient. CPA Prince Edward Island identifies assurance, compilation and other regulated services within its public practice directory guidance. Ask the accountant to explain the proposed engagement and confirm that it addresses the recipient's request before you sign. [3]

Include unresolved items in your brief: missing statements, transactions you cannot explain, unfinished bookkeeping or correspondence requiring a response. Ask which items you must resolve yourself and which the provider will investigate. Make that division of work part of the written scope.

Use directory checks to verify the proposed engagement

Ask for the responsible accountant's name and the contracting firm's name. CPA Prince Edward Island provides separate membership, public practice licence holder, professional corporation and firm directories. Check the relevant entries, then use the same names in your engagement letter so you know whom you are hiring and who will answer your questions. [3]

CPA Prince Edward Island states that individuals practising public accounting in the province must hold its public accounting licence. Ask your provider whether the proposed assignment involves public accounting and which licence covers that work. This guidance does not establish the precise licensing boundary for an ordinary tax preparation assignment; resolve that question with the provider or regulator. [2]

The regulator's public practice directory allows filtering by city and services, including regulated tax preparation, tax advisory and accounting services. Use those filters to identify relevant practitioners, then ask whether they accept your assignment. Confirm who will prepare the work, who will review it and who will explain the finished deliverables. [1]

Treat verification and engagement planning as separate steps. Verify the professional status the provider claims, then agree on your particular assignment. Ask for written confirmation of the records they need, their responsibilities and your review process. Keep that agreement with your verification notes.

Request written fees based on your records

Give each provider the same records summary and request a written quote for the agreed scope. Ask them to separate bookkeeping cleanup, return preparation, financial statement work and continuing support. Compare what each quote includes before choosing a provider.

For hourly work, request an initial estimate and agree on when the accountant must seek approval for additional work. Ask how they will charge for missing records, revisions, meetings and questions after delivery. Specify whether the quote includes applicable taxes and how you will receive invoices.

Agree on who will resolve outstanding questions and how you will review the completed work before authorizing submission. If you need help with later correspondence, ask the provider to define that support and its fee. Record exclusions so you can budget for work outside the initial assignment.

Plan the handover and your review

Request a document list before transferring files. Gather the relevant account statements, bookkeeping records, prior returns and correspondence. Mark gaps and unexplained transactions for discussion. Agree on a secure transfer method and ask which people will have access to your records.

Set dates for providing records, answering questions and reviewing the finished work. Ask the accountant to explain unresolved assumptions during your review. Request copies of the agreed deliverables and confirm how you will receive your records when the engagement ends.

For continuing support, define the reporting schedule and the questions you want the accountant to address. Agree on who maintains the books between reporting periods and how you will flag changes in the business. Include access arrangements and the final handover process in the engagement terms.

Selected experience requirements for PEI public accounting licence applicants

Match your assignment to the hiring check

Your hiring checklist

1. Describe the assignment, reporting period and required deliverables.
2. Identify the responsible individual and the contracting firm.
3. Verify claimed CPA membership and clarify the licence needed for the proposed work.
4. Give each provider the same records summary, including gaps.
5. Agree on written fees, exclusions and approval for additional work.
6. Confirm file transfer, access and dates for answering questions.
7. Arrange your review, copies of deliverables and return of records.

Frequently Asked Questions

Does CPA membership confirm a public accounting licence?

Check both when the assignment requires them. CPA Prince Edward Island provides separate membership and public practice licence directories and reserves public accounting for individuals holding its licence. Ask the provider to explain the proposed work and identify the responsible licence holder. [2] [3]

Should I reject an accountant whose name is missing from the directory?

Contact CPA Prince Edward Island for verification before deciding. The regulator says some members opt out for privacy reasons and offers assistance with membership checks. After resolving status, confirm the person's role in your engagement letter. [3]

How should I request an accounting quote?

Provide your records summary, reporting period and required deliverables. Request a written quote based on those records and the agreed scope. Ask the provider to separate cleanup, preparation and continuing support, and explain how they will charge for additional work.

What should I agree on before handing over records?

Request a document list and agree on a secure transfer method, file access and dates for questions and review. Specify the copies you will receive and how the accountant will return your records when the engagement ends. Record these arrangements with the scope and fee.