Choosing the right Certified Public Accountant (CPA) is an important decision for individuals and business owners. A CPA can do much more than prepare a tax return. The right accounting professional can help with tax planning, financial decisions, business growth, and long-term financial organization.
Before choosing a CPA, asking the right questions can help you determine whether the firm has the experience, services, and approach that fit your needs.
What Services Do You Provide?
Not every CPA firm offers the same services. Some primarily focus on tax preparation, while others provide year-round accounting, tax planning, business advisory, and financial reporting services.
Before hiring a CPA, ask which services are available and whether the firm can continue supporting you as your financial needs change.
For business owners, it is especially important to determine whether the CPA regularly works with small and mid-sized businesses.
Do You Have Experience With Businesses Like Mine?
Industry and business experience can be valuable when selecting a CPA. An accountant who understands businesses similar to yours may already be familiar with common expenses, tax considerations, financial challenges, and growth opportunities within your industry.
Ask about the types and sizes of businesses the CPA typically serves and whether they have experience with companies at your stage of growth.
Will You Help With Tax Planning or Just Tax Preparation?
There is an important difference between preparing taxes and planning for them.
Tax preparation focuses on completing and filing required tax returns. Tax planning takes a more proactive approach by looking ahead for opportunities to manage tax obligations and prepare for future financial decisions.
If you own a business, ask whether your CPA provides tax planning throughout the year rather than only contacting you when tax season arrives.
How Often Will We Communicate?
Communication is an important part of a successful relationship with a CPA.
Ask how frequently you can expect to communicate and who will be your primary point of contact. You may also want to know how the firm handles questions that come up throughout the year.
For many business owners, having access to an accounting professional when an important financial question arises can be just as valuable as tax preparation itself.
How Do You Help Clients Understand Their Financial Statements?
Financial reports are only useful if you understand what they mean.
Ask whether the CPA will help explain your income statement, balance sheet, cash flow, and other important financial information. A good CPA should be able to explain financial concepts clearly and help you understand what the numbers may mean for your business.
This information can help when making decisions about hiring, purchasing equipment, managing expenses, expanding the business, or preparing for future investments.
How Do You Charge for Your Services?
Before hiring a CPA, make sure you understand how fees are structured.
Some accounting firms charge hourly rates, while others may offer monthly, quarterly, annual, or service-based pricing. Ask what is included, what could result in additional charges, and how pricing may change as your accounting needs become more complex.
Understanding costs upfront can help prevent surprises later.
Can You Help If My Business Grows?
Your accounting needs today may look very different several years from now.
A growing business may eventually need more advanced tax planning, financial reporting, payroll guidance, business structure advice, or assistance preparing for financing or expansion.
Ask whether the CPA firm has the resources and experience to continue working with you as your business grows.
How Do You Stay Current With Tax Changes?
Tax rules can change from year to year. Ask how the CPA firm stays informed about changes to federal and state tax requirements that may affect you or your business.
A knowledgeable CPA should be able to explain relevant changes and help clients understand how new rules could affect their financial and tax planning.
What Should I Expect From Our Relationship?
This simple question can tell you a lot about a CPA firm.
Ask what the firm expects from you and what you should expect from them. Understanding how documents are exchanged, when information is needed, how questions are handled, and how frequently you will communicate can help establish a stronger working relationship from the beginning.
Should I Choose a Local CPA?
Working with a local CPA can be beneficial for individuals and businesses that want a more personalized relationship with their accounting firm.
A local CPA may have greater familiarity with the business environment and tax considerations affecting clients in the surrounding area. For businesses in the Chicago area and Northwest Suburbs, having an accounting firm that understands Illinois businesses can provide an additional level of local knowledge.
Finding the Right CPA for You or Your Business
The best CPA relationship should go beyond filing tax returns. Your accountant should understand your goals, communicate clearly, provide reliable financial information, and help you prepare for important financial decisions.
The Dolins Group works with individuals and businesses throughout the Chicago area and surrounding suburbs, providing accounting, tax preparation, tax planning, and financial guidance based on each client’s individual needs.
If you are looking for a CPA and want to learn more about how The Dolins Group can help, contact our team to schedule a conversation.
