Most people wait until they get an IRS letter or miss a payroll deadline before they even think about hiring a CPA. That's usually the most expensive time to look. A few upfront questions separate the pros from the people who just passed the test.
Licensing & Insurance Questions
Ask for their license number and check it with your state board. Every state has an online lookup. If they hesitate, walk away. You also want to see proof of professional liability insurance. A single honest mistake can cost you thousands, and without insurance you're stuck chasing them personally. Don't assume a tax preparer is a CPA — many aren't. The letters matter because they require ongoing education and ethical standards.
Experience & References Questions
Ask who their other clients are. Not names, but industries. If you run a construction company and they only work with dentists, you're going to have a bad time. Request two references from clients in your situation. Call them. Ask if the CPA returns emails within a day and if they've ever missed a filing deadline. References that dodge or give vague answers are a red flag.
Pricing & Timeline Questions
Get a flat fee quote for the year, not an hourly rate. Hourly billing rewards slow work. Ask what's included — does that cover tax planning, bookkeeping reviews, and a quick call when you have a question? Also ask when they need your documents by. A good one will give you a hard deadline, not a vague "whenever you can." Late filers cost you penalties.
Contract Questions
Read the engagement letter. It should say exactly what they will and won't do. If it's full of weasel words like "may assist" or "as needed," ask for clarity. Find out what happens if you fire them — do you get your files back immediately? Some firms hold your records hostage until you pay a final bill. That's legal in some states, so get it in writing upfront.
Once you know what to ask, go compare local CPAs & accountants on RatingsNearMe.