23 Critical Questions to Ask When Hiring a CPA

Question #1: Is timely service delivered?Question #12: Who will I be interacting with?
Accounting information can get out of dateMany tax firms assign more than one person to a
quickly. Except for annual information, mostclients return. You probably dont need to know
accounting information should be no more thanhow the back room operates, but you want to
10-30 days old. You should be able to access yourknow if the person youre interviewing is the one
up-to-date information and your CPA quickly andwho will be able to answer your questions about
easily.your return.
A proficient CPA makes it a habit to get back toQuestion #13: Whats your policy on returning
clients as quickly as possible. Phone messagesphone calls?
should be replied to the day they are left or noA common complaint often heard from
later than the following day.consumers about their CPAs is about long wait
Question #2: Do the same people always servicefor returned phone calls. CPAs arent famous for
your account?their communication skills. Its not unreasonable to
Ideally the same person should work with you notask how long you should expect to wait to have
whoever is available at the time. That way aa call returned. Asking also lets your CPA know
relationship can be built where the accountant andyou do want your calls returned promptly.
you are comfortable with each other.Question #14: Are you available outside of the
Question #3: What services beyond the usualtax season?
reporting and number-crunching are offered?Some tax preparers are seasonal. They are
A CPA needs to be more than a data entry clerk.available only the first four months of the year,
Its their duty as an adviser to make sure theor their offices are close for a few months each
information they receive makes sense. If ityear. If you expect year-round access, you need
doesnt, they should ask questions and seekto make sure the tax professional is available.
clarity.Question #15: Are you a corporation of CPAs or
Question #4: How can the accountant help youan individual CPA that has their own business?
make more money?If you opt for the corporation, find out if youll be
It sounds like a wise-guy question, but the answerdealing with one particular person, or will it be
will help you find out if candidates are interested inwhoever answers the phone when you call. Its
your business. Did they review the financialbest to have one person to build a relationship
information you provided prior to the interview?with.
Did they make sure you understood theQuestion #16: When do you work?
accounting concepts, instead of tossing off aWhat are the CPAs hours of operation? Make
bunch of jargon?sure that you can call him at hours that are
A proficient CPAs goal to save you more in taxesconvenient for you.
it is also in his best interest that you succeed.Question #17: Do you conduct your own business
Question #5: Do you believe Im paying too much,and personal affairs in a reasonably efficient and
too little, or just the right amount of tax?sensible way?
Beyond simply preparing tax forms, anAsk questions about the CPAs approach to
accountant should be involved in business planninggetting and serving clients, the role of staff, the
throughout the year. Typically, a quarterly reviewuse of technology including computers,
should be scheduled to ensure books and recordscommunications equipment and the Internet as
are in order. This also allows the CPA time towell as ways of keeping current, research
advise clients about their businesses so theymethods, management of files and records, etc.
function with peak tax efficiency.Question #18: Will my computer and/or I be
Because most business owners pay too much inserviced by you, a partner or junior accountants?
taxes, a proficient CPA will analyze the taxMany CPA firms train new associates at the
situation from the form of entity to all legalclients expense. Be sure you get what you pay
means to plan and minimize all taxes paid.for.
Question #6: Do you consider yourselfQuestion #19: How are your fees calculated? Will
tech-savvy?you be charging me for every phone discussion?
Small business accounting software has madeTo avoid friction later, it is essential to discuss the
powerful accounting tools available to everyone.CPAs fee structure. Tax professionals may bill by
But these accounting packages (most notablythe hour, form, overall return or some
QuickBooks) are only as useful as the person whocombination. After reviewing your previous
installs and runs the application. For this reason, areturns and interviewing you, a tax professional
proficient CPA will help you install and set up a setshould be able to give you a good-faith estimate
of books, while also requesting them for review.of costs. If the CPA uses a time-based system,
Question #7: Who are your other clients?discuss the hourly rate of the accountant and
Imagine this scenario: You hire an accountantstaff, overhead expense reimbursement (what is
based on the assumption he understands thethe cost of a fax?) and whether certain time is
basics of your business. Then, you find out hesnot billed.
never had a client like you before. Instead, hesFind out now whether a simple two-minute phone
only prepared tax forms for wealthy individualscall or a one-page fax means an hour of billable
who dont own businesses.time. If thats the case, run for the door.
Avoid this disaster by asking about theQuestion #20: What can I do to help you with
accountants clients. If they are businesses similaryour work and keep your fees to a minimum?
to yours, thats a good sign. In asking aboutA great deal of your accountants time can be
clients, you will also want to understand the CPAssaved by preparing information beforehand. Find
work schedule and whether he has the time andout if your CPA is willing to work with you to
resources to support you adequately.offload this work to your firm.
Question #8: What kind of creative businessQuestion #21: Do you perceive any conflicts of
advice will you offer me?interest?
Advising clients on what they can do to grow andCPAs work for dozens of firms and scores and
set goals, as well as discussing issues, are all partsometimes hundreds of individuals. You should
of a proficient CPAs services. Together, thisinquire if any of your direct competition is
allows you to discover what works for yourrepresented by the firm. If so, inquire as to how
business so funds are used wisely.this conflict is handled.
Question #9: Why should I use you?Question #22: How long have you been a
Ask the question and just listen for the answer.Certified Public Accountant, and what other
You should feel like the CPA really cares aboutlicenses do you hold?
your success.You should inquire with the state CPA organization
Question #10: What kind of credentials do youto discover if there have been any disciplinary
have?actions entered. Some accountants also have
Tax professionals are usually certified publiccredentials as financial planners (PFS), securities
accountants (CPAs), enrolled agents (EAs) orrepresentatives, business valuation experts, even
unenrolled preparers.lawyers. Check web directories and websites (e.g.,
Question #11: How much professional education
do you get annually?Question #23: How well have you integrated
Just passing the test to be a CPA or an EA isntcomputers and the Internet into your practice,
enough. With the tax code and interpretations ofand has it enabled you to do more for the clients
the code changing every year, continuingat less cost?
education is really essential. EAs are required toIntegrating your computer files with your CPAs
have 72 hours of continuing education in afiles can save time and money and increase
three-year period; each state sets its ownaccuracy. Doing so over the Internet makes it
requirements for CPAs. In Oregon, for example,even simpler. Find out how your CPA uses the
CPAs must take 80 hours of continuing educationInternet. Does he have his own website? If so,
within a two-year period.check it out and ask questions about the
Many tax professionals take more than theresources available on it. Find out how you can
minimum requirement for continuing education.interact with him and his computer systems to
Although more training doesnt necessarily meanmake work flow more efficient, while enabling
the tax pro will be superior, its certainly not a badboth of you to stay in touch.
sign.