If you are a small business owner (or anyone, really), you will want to function with peak tax efficiency. Hiring a CPA for a small business or even hiring a CPA for personal taxes can mean so much for your budget and end up saving you lots of money.

So, it’s important to get the right CPA firm for you so the investment is worth it. That’s why we brought in the industry experts, Ratio CPA from Las Vegas, to let us know what questions to ask when hiring a CPA and the answers to them. So, let’s get started.

What to Know Prior to Hiring a CPA for LLC

There are certain questions you must have and certain ones you’ll need to ask yourself before you start asking CPA firms questions. So, let’s start with those.

CPA Meaning – What Is a CPA?

A CPA (Certified Public Accountant) is a highly trained professional and an expert in the field of accounting. Is a CPA better than an accountant? Yes, a CPA’s education and expertise surpass those of an accountant. That means that a CPA can help you with more than just tax preparation.

What Can a CPA Do That an Accountant Can’t?

A CPA doesn’t just do your taxes – they find the best way for your business to operate so that you can work with peak tax efficiency and save money. CPAs can perform a plethora of financial tasks from forensic research to document preparations and transactions to audits.

What’s the Average for Hiring a CPA to Do Taxes?

One of the most common questions people have is How much is hiring a CPA for taxes? The answer to that depends on the work you need to be done and whether you’re paying a flat fee or per task done.

The National Society of Accountants says that the average flat fee for a CPA in 2020 for doing Form 1040, Schedule A, and a state income tax return was around $320.

Do I Need a CPA?

A key question you need to ask yourself is what your time is worth. Do you have the time and knowledge to handle all financial-related work by yourself? Or is your time better invested in your line of expertise so your business (and bank account) can grow and you want an expert handling your finances?

What to Ask When Hiring a CPA

If you decide that you want to make the most of your time by spending it where your expertise lies and hire a CPA to do your taxes – smart move. Here are the things you need to know when interviewing prospective candidates and looking for the perfect match for you and your business.

Ask Them About Their Industry Experience

Finding a CPA that specializes in your industry is a plus. Such CPAs are already familiar with how things work and they’ll be able to help your business work according to the best model so you maximize your profit.

But, industry experience is not a must and if you get recommendations from various trusted sources about a person without it, don’t cross off that CPA just because of that. If they are professionals in their field, they will do their due research and deliver top results for you, too.

Set Clear Expectations

This is crucial in any relationship. You need to talk to your prospective CPA and set clear expectations on both sides. Ask them about how they charge and if they charge a flat fee, ask them if that includes tax advice throughout the year. Be specific about compensation and the financial aspects upfront – no one needs unpleasant surprises later on.

Also, ask what they expect from you. They will need your input and you’ll need to deliver documents and information they’ll need to be able to help you in the best way. Find out what they need from you and deliver it openly and diligently – it’s in your own best interest.

Establish the Lines of Communication

CPAs have a bit of a bad rep when it comes to calling back and communicating. You don’t want to be stuck with one that doesn’t return your calls and address your inquiries in a timely and professional manner.

So, establish a line of communication that will work best for both of you – is it phone calls, emails, visits? Agree on this early on and factor in the willingness to communicate and how you match together when making the final decision.

Is Hiring a CPA Worth It?

If you hire the right kind – yes! There are many benefits of hiring a CPA, the most important ones being saving time and money. All you need to do is make sure you’ve hired an expert that will understand your needs. And, hopefully, this article helps you with that!