Buyer's Toolkit
CPA hiring checklist
A 24-point printable checklist covering everything to confirm before you sign an engagement letter.
1. Define what you need
- Write down whether this is a one-off tax return, ongoing bookkeeping, monthly close, payroll, audit, IRS representation, or fractional CFO work.
- Note your entity type (Sole Prop, LLC, S-Corp, C-Corp, Partnership, Nonprofit) and your state(s) of operation.
- Estimate annual revenue, employee count, and transaction volume — these drive scope and price.
- List any specialty needs: real estate, restaurants, crypto, multi-state, R&D credits, international, etc.
2. Verify credentials
- Confirm the license number on the relevant state board's licensee lookup.
- Confirm the status reads Active — not Inactive, Lapsed, Suspended, or Revoked.
- Check the IRS Return Preparer Office directory if hiring an Enrolled Agent or paid preparer.
- Ask for and confirm any additional designations (CFP, CFE, CMA, ABV) with the issuing body.
3. Vet experience and fit
- Confirm direct experience with your industry and entity type — ask for two recent client references.
- Ask how many returns of your type they sign personally each year.
- Ask who actually performs the work — partner, staff, offshore team — and who reviews it.
- Make sure their busy-season capacity matches your filing deadlines.
4. Get pricing in writing
- Ask for a written fee schedule or estimate before you share documents.
- Confirm what is and is not included (returns, schedules, K-1s, amendments, IRS letters).
- Ask about out-of-scope billing rates and whether you'll be notified before extra fees accrue.
- Walk away from anyone basing fees on a percentage of your refund.
5. Communication and process
- Confirm typical response time during and outside busy season.
- Make sure document exchange uses a secure portal — not email attachments.
- Agree on a meeting cadence (e.g. quarterly check-ins, year-end planning call).
- Get the engagement letter — scope, term, termination, dispute resolution — and read it.
6. Security and ethics
- Confirm they will sign the return as the paid preparer (skip anyone who refuses).
- Ask about professional liability insurance coverage and policy limits.
- Confirm data-retention and breach-notification practices.
- Search the state board's disciplinary actions list for the name and firm.
FAQ
Common hiring questions
Do I need a CPA or will an EA or bookkeeper do?▾
Use a CPA when you need attest work, audited financials, or complex multi-state / multi-entity tax. An Enrolled Agent can prepare and sign returns and represent you before the IRS for less money. A bookkeeper handles day-to-day transactions but cannot sign your return or represent you at the IRS.
How long should the hiring process take?▾
Two to three weeks is healthy: an intro call, a scoping call, a written fee proposal, an engagement letter, then onboarding. Anyone insisting you sign same-day is a red flag.
When is the best time to switch CPAs?▾
Late spring through early fall. Switching during busy season (January–April for individuals, March–April and Sept–Oct for businesses) usually means delays and double fees.
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