An accountant affects more than just your tax return. The CPA you hire will take a detailed look at income and spending, and their guidance can shape decisions about how your business grows and takes on risk. Price matters, but credentials and communication style usually decide whether the relationship works.
A few signs indicate it’s time to bring in professional accounting services, but business growth is the most common. As revenue climbs and your team expands, a spreadsheet or basic software becomes harder to trust. Inevitably, taxes also become more complex as the business grows. Investment sales, tariff refunds, or income earned in more than one state can turn a simple return into one that could benefit from a skilled accountant.
Other reasons to hire an accountant could include preparing for an audit or a loan application or receiving an IRS notice. If bookkeeping keeps you from running your business, an accountant can usually handle the work faster and with fewer errors.
The first decision to make is whether to hire an accountant as an employee or work with an outside firm.
The right choice depends on the size and complexity of your company. Many small and mid-sized businesses get better value from a firm, and some use both internal accountants and outsourced accounting services.
Knowing the right questions to ask an accountant upfront prevents costly mismatches later. Here are 10 questions you should ask before hiring an accountant.
A Certified Public Accountant (CPA) has passed the Uniform CPA Examination, completed education and experience requirements set by their state, and holds an active license. CPAs also maintain continuing professional education (CPE) credits and follow ethical standards enforced by their licensing board. Other credentials signal distinct specializations. For example, an Enrolled Agent (EA) is authorized by the federal government to represent taxpayers before the IRS. Always request a license number and verify it directly with your state licensing board.
An accountant’s active portfolio reveals whether they understand the nuances of your industry. A firm focusing predominantly on individual 1040 returns might struggle with a multi-entity manufacturing business or a complex construction company. Ask how many active clients they serve within your niche and revenue tier.
Tenure signals stability and deep familiarity with evolving tax legislation. An accountant that’s been in business a while also gives you confidence that they’ll be around to defend your position if you face an audit years later. If you’re evaluating a newer firm with modern technical capabilities, ask about the career histories and credentialing of the primary practitioners assigned to your file.
The senior partner you speak with during initial consultations is not always the person managing your day-to-day books. Ask who compiles your returns, who oversees reconciliation, and how tasks are distributed across senior vs. junior staff. Delegation is standard practice, but you deserve transparency into your engagement team and a dedicated point of contact.
You’ll want to know what to expect from the accounting team you work with. Ask what accounting software ecosystems they integrate with (such as QuickBooks, NetSuite, or Sage), how they manage secure document transfers via client portals, and how frequently you will meet for financial reviews. A team that schedules regular check-ins is far easier to work with than one that surfaces only near filing deadlines.
This question helps you figure out whether the firm goes beyond recording transactions and filing returns. The answer you want to hear involves forward-looking tax planning, cash flow forecasting, and advice on how your financial decisions affect growth.
You want to find a partner that responds during both regular operations and compressed tax filing periods. Confirm whether the firm maintains bandwidth to service your account promptly. Even an exceptional CPA becomes a liability if inquiries sit unanswered for weeks when you’re up against a financing or compliance deadline.
Industry experience matters because each sector has its own rules, cost structures, and tax issues. A contractor should hear about job costing and revenue recognition, and a business that sells in several states should hear about sales tax and apportionment. If your operations cross state lines, ask how the firm handles state and local tax planning and compliance.
Ask about the full range of services, such as tax preparation, bookkeeping, payroll, and advisory work. If you might need an audit or review of your financial statements for a lender or investor, ask whether the firm provides audit and review services or refers that work elsewhere.
Then ask how fees are structured. Hourly billing, flat fees, and monthly retainers are the most common models. Ask what’s included and what’s billed separately, and get pricing in writing before the engagement starts.
You reduce tax liabilities throughout the year, not just in April. Year-round accessibility matters if you need ongoing management reporting, mid-year tax projection updates, or prompt responses to government inquiries.
Understanding what to look for in an accountant requires distinguishing between tax preparers and licensed CPAs:
A seasonal preparer may be fine for straightforward W-2 returns with standard deductions. But if you’re a business owner, real estate investor, or multi-state operator, a licensed CPA gives you broader coverage and year-round support.
Certain warning signs should give you pause during the evaluation process. Any one of them deserves a direct question, and several together suggest you should keep looking.
Start by deciding what you need, then work through these steps.
Porte Brown is a full-service accounting and consulting firm that covers the needs described in this guide, from tax planning and preparation to audit, business valuation, and strategic consulting. We work with both individuals and businesses, often on-site, so we understand your operations before we offer advice.
If you want to learn more about how we can support your accounting, contact Porte Brown today to talk with a member of our team.
Get in touch today and find out how we can help you meet your objectives.
