As a small business owner, finding the right certified public accountant (CPA) or accountant is crucial for the financial health of your business. The key to making the right choice is asking the right questions before you hire. 🗣️
Just as you would thoroughly interview a potential employee, you need to ensure that the CPA or accounting service you hire aligns with your business needs and goals. This article will guide you through essential questions to ask when considering a CPA or accountant.
Let’s dive in!
Why do I need to interview potential accountants?
Hiring a CPA or accountant is a decision that can significantly impact your business’s cash flow and long-term financial health. That’s why it’s so important to treat the interview process like you would when hiring any other employee. 📝
During the interview process, you can determine if your accountant…
Communicates well and is available when you need them.
Understands what your business does and the industry you’re in.
Will be proactive about finding opportunities for tax breaks—or identifying potential risks before they pop up.
Has the experience and certifications to support you as your business grows.
Can offer personalized financial advice that aligns with your specific goals, including financial planning and growth strategies.
Ultimately, asking the right questions during the interview process can help you find the best accountant for your business—and avoid the costly mistake of hiring the wrong person.
Still looking for accountants and/or CPAs to interview? Check out Relay’s accountant and bookkeeper directory here to find verified professionals near you.
10 questions to ask before hiring a CPA or accountant
When you’re hiring a CPA or an accountant, it’s important to ask open-ended questions. Your goal should be to gain deeper insight into their experience, approach, communication style, and compatibility with your business’s needs.
💡Tip: Remember that the specific questions you ask a potential accountant or CPA depend on what services you need. For example, not every accountant specializes in taxes—and you might not be looking for complex tax help. If that’s the case, you might consider skipping the tax questions.
Ready to get started? Here are 10 questions to ask before hiring an accountant or CPA for your small business.
1. How long have you worked in this industry, and what common mistakes do you often see small businesses make?
Having industry-specific experience can greatly enhance the insights and guidance a CPA or accountant can provide. By asking how long they’ve worked with businesses like yours and what common missteps they’ve seen, you’ll gain a sense of their familiarity with the particular financial challenges your business may face. 🔎
This question also highlights their approach to proactive support; a seasoned accountant who regularly identifies patterns and recurring issues is better equipped to spot potential risks early, helping you steer clear of problems before they arise.
💡Tip: Find qualified accountants and bookkeepers near you with Relay’s free accountant directory. At a glance, you can see what certifications they have, which industries they specialize in, and more!
2. What financial metrics should I pay attention to, and how can you help track them?
Your CPA should help you stay on top of important financial metrics like profit margins, debt ratios, and cash flow. 📊This question digs into their understanding of the financial metrics that matter most for small businesses and the efforts they’ll put into monitoring them to keep your finances on track.
3. How would you tailor your services to fit my business?
Every small business is unique. A CPA who offers one-size-fits-all accounting services may not deliver what you truly need. By asking how they’d customize their services specifically to your business type and business size, you’ll understand if they can successfully handle the various growth stages your business will go through – from the startup life to a more mature company. 🏢
This question also highlights whether they’ll adjust services for things like changes in business structure, expansion to additional locations, or other changes to your accounting needs.
4. How will you find growth opportunities from my financial data?
A great CPA isn’t just reactive—they’re proactive and opportunistic, with an eye for spotting potential opportunities that may not be apparent to you or the average small business owner.
Asking this question helps you find out if your CPA can effectively analyze your financial statements for insights that lead to strategic business decisions. Whether it’s suggesting a new revenue stream, examining profitability, or identifying tax-saving opportunities, this shows if they’ll actively contribute to your business’s success—or if they’ll be more of a passive bystander. 🤔
5. How do you handle tax planning for the long term, not just tax season?
Long-term thinking and planning are the name of the game for an effective CPA. 📈This question uncovers if your CPA can go beyond tax preparation and tax filing to offer ongoing tax planning that aligns with your business’s future.
Are they keeping an eye on changing tax codes and tax laws and how these might impact your tax situation? A forward-thinking CPA will help you lower your tax liabilities over time, not just on a yearly basis.
6. Can you help me choose the right accounting software, and will you teach me how to use it?
Today’s business world relies on accounting software like QuickBooks Online to track finances efficiently. A CPA who knows how to implement and optimize these tools can save you time and money. This question ensures that your CPA is well-versed in the software you’re using or can recommend the best tool for your business, streamlining your operations and giving you real-time visibility into your cash flow. 💸
7. How will we communicate if we’re working remotely, and how often will we meet?
With the rise of remote work, it’s important to understand how a CPA manages their responsibilities and relationships when they’re not in the same building as you. 💻
This question also helps you figure out how frequently they’ll be available for in-person or virtual meetings. The goal is to see if they can maintain a consistent, proactive approach to communication, whether that’s through webinars, phone calls, or video meetings.
8. How do you make sure I’m getting all the tax credits and deductions I’m eligible for?
Most tax experts can handle a tax return, but the real value comes in finding ways to save your business money. This question allows you to see if your CPA will go beyond the basics to make sure you’re leveraging every tax deduction and credit possible. 💰
It also highlights their knowledge of niche tax benefits specific to your industry, ensuring you can benefit from all cost savings opportunities available to you.
9. What steps do you take to keep my financial information secure?
Your CPA will handle some of the most sensitive data related to your business, including bank account details, business structure documents, and payroll information. 💸 Asking about their security measures will give you peace of mind that they’re using best practices—such as encryption, secure servers, and confidentiality protocols—to protect your data.
10. How do you help clients prepare for potential audits?
While an audit isn’t something that you’ll be excited about doing, it’s best to always be well-prepared for one. A good CPA will not only ensure your financial records are accurate and compliant with tax regulations but also guide you through the audit preparation process.
This question reveals their approach to keeping your books audit-ready and how they would support you if the IRS comes knocking. 🚪 Knowing your CPA is proactive about this can save you from stress and potential penalties in the future.
Hire a CPA for your business with confidence
Interviewing potential CPAs and accountants thoroughly is one of the most important steps you can take to ensure you find someone who aligns with your business needs and values.
The right financial partner can make a big difference when it comes to managing cash flow, planning for growth, and navigating tax complexities. By asking open-ended questions that go beyond the basics, you’ll gain a deeper understanding of how well they can support your business and help you reach your goals.
Use these questions as a guide when interviewing candidates to ensure you’re selecting the best fit for your business. And when you’re ready to connect with qualified professionals, don’t forget to check out Relay’s accountants and bookkeeper directory. 💻
FAQs about hiring a CPA for your business
Is a CPA the same thing as an accountant?
While both accountants and CPAs handle business accounting, there are some important distinctions between the two:
An accountant typically holds a degree in accounting and may offer general accounting services like bookkeeping, preparing financial statements, and managing payroll.
A certified public accountant (CPA) has passed rigorous certifications, meets state licensing requirements, and often specializes in more complex tasks like tax planning, financial planning, and representing clients before the IRS.
At the most basic level, you can remember the difference this way: every CPA is an accountant, but not every accountant is a CPA. Learn more about different types of accounting certifications and what they mean for your business here.
Do I need a bookkeeper, a CPA, or an accountant?
Some business owners choose to have one CPA for all their business accounting needs, while others may rely on an accountant for ongoing financial tasks, a bookkeeper for bookkeeping, and a CPA for their taxes.
A good rule of thumb for this: the less complex your business is, the less complex your financial team needs to be. Here’s a quick guide for you:
If you only need an accountant for your annual tax return, stick with a CPA.
If you need help keeping your books organized and categorizing transactions monthly or quarterly, it might be time to hire a bookkeeper, as well.
If you need to hire a financial professional in-house to manage payroll, reconcile a large volume of monthly transactions, and handle other tasks, then it’s time to add an accountant to your team.
No matter who you need to hire, be sure to check out Relay’s accountant and bookkeeper directory to connect with local professionals who fit your business’s unique needs. 📝
