As another tax season approaches, many individuals are beginning to evaluate their relationship with their current CPA. Perhaps communication has become difficult, tax bills continue to catch you by surprise, or you simply feel like your accountant is only involved when it is time to file a tax return and is not doing everything they can to help. If any of this sounds familiar, now is the best time to consider making a change. Finding a new CPA in January or February can be challenging. Most accounting firms are already managing heavy tax-season workloads, and there client books for the year have already been set. Starting the process before tax season gets underway gives you an opportunity to evaluate your options, and make sure your new CPA is on the same page as you. Choosing the right CPA firm should involve more than comparing tax preparation fees. It is an opportunity to find a firm who understands your business and can help you make better financial decisions throughout the year. Before hiring your next CPA, here are the questions worth asking.
1. Does Your CPA Provide Proactive Tax Planning and Business Advisory Services?
This may be the most important question you ask when interviewing a new CPA. There is a significant difference between a CPA who prepares your tax return and one who actively helps you plan for the upcoming tax year. Tax preparation is largely retrospective. It reports financial activity that has already occurred. Tax planning, on the other hand, involves looking ahead and identifying opportunities before the year is over. For business owners, this distinction can have a substantial financial impact. Your CPA should be willing to discuss whether your current business structure is still appropriate, how changes in income could affect your tax liability, and whether there are opportunities to improve your overall tax position. They should also be available to discuss significant financial decisions before you make them. For example, should your business switch to an S-Corp? Is it time to do retirement conversions? Would purchasing equipment before year-end make financial sense? Are your estimated tax payments keeping pace with your income? These are not conversations that should happen for the first time when your tax return is being prepared. When interviewing a new CPA, ask specifically what their tax planning services include, how frequently they meet with clients, and whether advisory services are part of the engagement or billed separately.
2. How Often Will We Communicate Throughout the Year?
One of the most common frustrations people have with their accounting firm is a lack of communication. You should not have to send multiple emails just to receive an update on your tax return. More importantly, you should not have to wait until tax season to discuss an important financial decision. Ask how the firm communicates with clients, who your primary point of contact will be, and what you should expect when you have a question. Some firms operate primarily through email and secure document portals. Others schedule periodic meetings to review financial performance and discuss upcoming tax considerations. Neither approach is automatically right or wrong. What matters is that the firm's communication style matches your expectations and that you can reach someone when a question arises.
3. Do You Work With Businesses Similar to Mine?
Not every CPA firm has the same experience. A business owner operating a real estate investment company may have very different tax considerations than someone running a professional services firm or a construction company. Ask whether the CPA regularly works with businesses in your industry. Discuss your current operations, ownership structure, and any complexities that may require specialized tax knowledge. This is particularly important if you own multiple businesses, hold investment real estate, operate in a niche industry, or operate through multiple legal entities. The right CPA should understand the tax considerations associated with your business rather than simply applying a standard approach to every client.
4. What Happens If I Receive an IRS or State Tax Notice?
Receiving correspondence from the IRS or state taxing authority can be stressful, particularly when you are unsure how to respond. Before hiring a CPA, understand whether their services include assistance with tax notices, examination correspondence, and other tax-related issues. Some firms include limited notice assistance in their tax preparation fees, while others charge separately for representation or resolution work. Ask where the firm's responsibilities end and what additional costs you could encounter if an issue arises.
5. How Do You Charge for Your Services?
Price should certainly be part of your decision, but it should not be the only consideration. Many firms charge very different prices for the same thing, but what is included does not always flow across the board. When comparing CPA firms in the Dallas-Fort Worth area, make sure you are comparing similar services. One firm may quote a fee that covers tax preparation only, while another may include tax planning meetings and ongoing advisory support. Ask for a clear explanation of what is included in your engagement. Find out whether bookkeeping assistance, estimated tax calculations, business consultations, and tax planning are included or billed separately. The least expensive CPA is not necessarily the most cost-effective choice, particularly if the relationship does not provide the guidance your business needs. If you start looking to save a few hundred bucks you could be leaving thousands in tax savings on the table. Do your due diligence when vetting CPA’s and treat the expense as an investment. Sometimes choosing the right CPA may not be the cheapest option but may save you more money down the road.
6. Who Will Actually Be Handling My Account?
When you hire a CPA firm, you should understand who you will be working with. Will you have direct access to the CPA responsible for your account? Will your tax return be prepared by an experienced professional, or will most of the work be delegated to staff members? There is nothing inherently wrong with a firm having a team approach. In fact, a well-organized team can provide excellent service. However, you should know who is responsible for your account and who will answer questions when something important comes up.
Establishing this relationship before tax season can make the transition considerably easier.
When Should You Make the Switch?
If you are considering changing CPA firms, waiting until the middle January is already too late. The months leading into tax season provide an opportunity to interview firms and begin transferring the information necessary to prepare your tax returns. You also have time to discuss your expectations and determine whether the new firm is equipped to handle your specific needs. If you own a business, this transition is especially important. Your new CPA may need to review prior-year tax returns, accounting records, depreciation schedules, business entity elections, and other historical information before providing meaningful guidance. The earlier you begin, the more opportunity your new CPA has to understand your situation before important deadlines arrive. You do not necessarily need to wait until your existing CPA has completed every outstanding task to begin exploring your options. However, coordinate the transition carefully so that filing deadlines, outstanding payments, and other responsibilities are not overlooked.
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This article is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax outcomes depend on individual circumstances and applicable law. Consult a qualified professional regarding your specific situation.