Are you feeling lost about how to hire an accountant, and worried mistakes could cost you money or tax issues? Each year, around 131,000 new jobs open for accountants and CPAs; clearly many people need this expert help.
This quick guide gives you ten simple steps to easily find the right accountant who fits your needs and budget. Read on to avoid costly hiring mistakes.
Key Takeaways
Figure out your exact needs first—personal tax support usually costs less than business accounting; CPAs typically charge between $150 to $250 an hour, while bookkeepers average around $23 per hour.
Double-check credentials by confirming license numbers with state accounting boards, and ask each candidate about prior experience handling similar businesses.
Speak directly with several accounting candidates—ask about their tax strategies, familiarity with accounting software, and how they structure their fees.
Get in touch with previous clients; ask openly about the accountant’s skill level, turnaround speed, and success in identifying ways to save on taxes.
Clearly outline expectations upfront, like how often you’ll communicate, scheduled check-ins, and exact financial records expected from you.
Table of Contents
Determine Your Accounting Needs
You must first know what kind of money help you need before hiring an accountant. Your tax needs will differ if you run a business versus filing as a single person, so pick the right expert for your situation.
Assess whether you need personal or business accounting
Men often have varying accounting needs, depending on their individual financial situations. Personal finance tracking isn’t required by law—but skipping accurate records can lead to costly tax mistakes and overlooked deductions.
In fact, roughly 30% of small business owners make preventable tax errors that good financial practices could solve. What kind of accounting you need really depends on what financial details you’re handling.
Personal finance usually needs simple income and expense tracking, while business finance demands more thorough record-keeping for taxes and reports.
Small business owners might benefit from hiring a certified public accountant, or CPA. A CPA can represent you directly with the IRS if tax problems pop up. They offer expert tax planning advice and can catch deductions you might otherwise overlook.
CPAs also help set up effective accounting systems, using software like QuickBooks or Quicken, to simplify the entire process. Choosing a skilled accountant often means saving valuable time—and potentially more money—through accurate tax filing and good financial advice.
Decide between a bookkeeper, accountant, or CPA
Once you’ve figured out your personal or business accounting needs, it’s time to choose the right financial expert. The best option depends on your specific tasks and available budget.
Bookkeepers typically charge around $23 an hour, tackling simple duties like balancing checkbooks or checking credit card statements. They handle everyday financial records well but usually don’t have formal accounting certifications.
Accountants cost more, from about $35 to $125 per hour, depending on their expertise and your location. They cover all the tasks bookkeepers do, along with more detailed financial duties.
For complicated tax filings or preparing professional financial statements, a CPA Chicago is often the smartest choice. CPAs typically start around $38 per hour but often cost between $150 and $250 or more.
Fixed fees for filing taxes run around $1,000 to $1,500. Many people choose bookkeepers instead, since bookkeepers usually cover basic financial tasks at a far lower cost. I once hired a CPA for my own small business and ended up paying three times more— a bookkeeper could’ve easily handled my basic financial records.
The right financial professional isn’t always the most expensive one – it’s the one that matches your specific needs.
Research Potential Accountants
Finding the right accountant starts with solid research. You can tap into your business networks for trusted names or search online directories of accounting groups.
Use professional networks and recommendations
Your contacts can connect you to excellent accountants. Other business owners facing similar challenges pointed me to the best tax professionals. Professional organizations, like the American Institute of CPAs, maintain member directories—these can help you spot qualified, dependable certified public accountants.
You could also try local business meetups. They’re great places to pick up candid opinions about accounting firms in your area. Many accountants build their client lists from word-of-mouth recommendations, which usually means they’re doing something right—they know how to deliver.
Make sure you ask clear, targeted questions whenever someone gives you a referral. For instance, saying, “Did the accountant find helpful tax deductions?” often produces better insight than a general question.
Through my own network, I connected with an accountant last year who identified thousands in tax credits for my business. Social media networks like LinkedIn help push your search past local circles.
Industry peers may connect you to specialists who grasp your particular business costs and compliance concerns. From there, use online directories and accounting associations to gather more accountant profiles worth checking out.
Search online directories and accounting organizations
Online directories make finding qualified accountants fast and easy. BILL’s Find an Accountant Directory is especially useful for small business owners needing financial advice. Many professional accounting associations also have searchable databases of Certified Public Accountants (CPAs).
These directories can filter results by industry specialty, hourly rate, or tax compliance expertise.
LinkedIn is another helpful resource to connect with accountants online. You can easily view someone’s professional history, scroll through their endorsements, or even send them a direct message.
Local college alumni groups and freelance job sites also feature skilled accounting experts from beginner to advanced levels. Ratings and client reviews also appear on most directories, helping you quickly gauge each candidate’s reliability and communication skills before reaching out.
The right accountant isn’t just a number-cruncher, but a strategic partner in your financial journey.
Evaluate Qualifications and Experience
The right accountant needs proper training and real-world know-how in your field. A CPA with five years of tax experience in your industry will spot deductions that others might miss.
Verify certifications and licenses
Always verify your accountant’s qualifications before you hire them. A genuine CPA must pass the Uniform CPA Examination and fulfill state requirements outlined by the American Institute of Certified Public Accountants.
Ask for their license number—and be sure to confirm it on your state’s accounting board website. Taking a few minutes for this easy check can save you from dealing with someone who doesn’t have proper training.
If you need a bookkeeper, check for certifications through organizations like the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers.
CPAs typically offer extra services that ordinary accountants may not. For instance, they handle your tax returns, carry out financial audits, and can even represent you at IRS meetings.
CPAs have thorough knowledge in company finances, taxes, and regulatory issues, so many small business owners find them worth the added cost.
Review their experience in your industry
Once you confirm licenses, shift your attention to industry expertise. Selecting an accountant familiar with your type of business can significantly benefit your finances. They’ll already understand your industry’s tax guidelines and typical deductions—no extra training needed.
Research indicates about 30% of business owners file incorrect taxes, but hiring an industry-experienced accountant greatly reduces that risk.
Try to choose a professional who has experience with businesses like yours. Ask potential accountants about past clients, completed projects, and results they’ve achieved. A small-business accountant serving sole proprietors will usually better meet your specific needs than one who deals mostly with large enterprises.
Their experience managing finances for similar companies gives you confidence they’ll handle yours smoothly and help your business grow. I personally hired an accountant specializing in remote-working tax savings, helping me save thousands each year with my digital nomad lifestyle.
The right accountant doesn’t just know numbers, they know your industry’s language.
Interview Potential Candidates
The interview stage lets you see how an accountant thinks on their feet about tax issues and financial software. Ask direct questions about their approach to QuickBooks or TurboTax to gauge if they match your business needs.
Discuss their approach to accounting and tax preparation
Talk openly with a potential accountant about how they manage your finances and taxes. A solid accountant makes it clear if they prefer “cash” or “accrual” methods—this difference matters big-time for startups.
They should easily walk you through how they track business costs and find tax savings. Also, find out if they use popular software, such as TurboTax, or follow specific standards like generally accepted accounting principles.
Dig a little deeper into how they prepare for tax season. Do they plan ahead throughout the year, or just rush to file forms right before deadlines? A great CPA clearly explains their methods for spotting deductions, managing payroll issues, and putting together profit-and-loss statements to guide your decisions.
Make sure they keep details simple and talk without complicated terms. An ideal match has strong money skills—but also clearly shares ideas that fit your business and personal style.
Ask about their familiarity with relevant software
Strong software skills really count in today’s accounting world. During interviews, ask candidates directly about the programs they regularly use. Great accountants stay up-to-date on popular apps like FreshBooks, Gusto, and any other platforms your company relies on to manage finances.
One time, I hired an accountant who said she knew Quicken—turns out, she didn’t. Learning it took her weeks, causing my tax filing to fall behind schedule. You don’t want something like that happening to you.
The right accountant doesn’t just know numbers, they know the tools that manage them.
Also, see if they’re familiar with common self-service tools—things like Credit Karma, YNAB, or Rocket Money. Simple software competence decides how quickly they’ll get things done, how well they organize costs, and how accurately they track each dollar.
A CPA who’s comfortable with tech can finish tasks faster, find valuable deductions, and save you money down the line.
Compare Fees and Services
Money talks when picking an accountant. Compare what each charges for tax prep, monthly bookkeeping, and special services like business planning.
Understand their pricing structure
Accountants typically charge between $60 to $400 per hour, averaging around $175 hourly. Certified Public Accountants (CPAs) often have higher rates—usually charging from $150 up to $250 or more per hour—or they might offer fixed-price packages for tax preparation services, usually starting around $1,000.
As I observed in my own business ventures, accountant pricing varies a lot. Some accountants bill strictly by the hour, which can mean unexpected surprises once month-end arrives. Others prefer fixed rates for basic tasks or value-based pricing strategies for tasks that are more detailed or advanced.
A good tip is to find an accountant who offers a mixed pricing method—a standard, predictable fee for regular bookkeeping combined with flexible hourly rates for special assignments or unique projects.
Talking openly about fees right from the start protects your finances and makes budgeting simpler, especially if you plan on starting an LLC or managing your company’s money.
Lastly, check out reviews and testimonials from the accountant’s previous clients—it gives a clear sense of their service quality and reliability.
Clarify the scope of services included
Clearly define what your accountant will handle for you. Small business owners often pay for services they don’t need—or worse, miss out on valuable support that fits their situation exactly.
A few years back, I hired an accountant who billed me extra for tax planning, even though it turned out to be included already. To avoid this, ask directly if they do bookkeeping, payroll management, preparing tax returns, or providing financial planning advice.
Some accountants stick strictly to completing tax forms, while others give broader financial guidance.
Before you hire, request a complete breakdown of their fees. You might find a simple flat-rate structure works best for basic tax filings. Hourly rates, on the other hand, could lead to savings on quick, straightforward tasks.
Be sure to find out about any potential extra fees that might pop up later—like costs for additional meetings or phone calls throughout the year. My current CPA does quarterly check-ins, at no added charge, to review my expenses and pinpoint tax savings as the year unfolds.
This type of service stops surprise bills down the road, helping me budget better for accounting expenses all year long.
Check References and Reviews
Don’t just take the accountant’s word for their skills—talk to their past clients for real feedback. Online reviews can also show you what others think about their work and how they treat their clients.
Speak with past clients
Chatting with an accountant’s past clients gives you honest insights into their performance. Previous clients can share details about the accountant’s responsiveness, problem-solving abilities, and industry know-how.
They’ll let you know if the professional accurately managed tax breaks—or overlooked important business deductions. This type of feedback goes far beyond what any resume or job listing could reveal.
In fact, five out of six business owners confirm that checking client references helped them steer clear of hiring mistakes.
Try contacting at least three former clients to notice trends in the accountant’s services. Get specific by asking questions such as, “How effective were they with your tax strategies?” or “Could you reach them easily during the busy tax season?” Past customers tend to offer valuable insight into communication styles, billing practices, and overall reliability.
Hearing directly from people who’ve worked with the accountant helps you choose the best fit for your company’s needs. The right professional can improve your small business finances, while a poor choice may lead to costly errors and issues with regulators.
Review online testimonials
Online reviews can tell you a lot about an accountant’s skills. I discovered my current CPA through a business forum, where clients praised his fast responses and deep tax knowledge.
Savvy people usually check Google Business and Yelp to get a sense of what others think, before choosing an accountant. Pay attention to repeated comments—they can show you how clearly an accountant communicates, how accurate their work is, and how well they solve problems.
Testimonials often highlight real-life experiences, like handling complicated business deductions or managing unexpected IRS audits.
Genuine client opinions matter more than fancy qualifications. Five-star ratings alone don’t say much—you should look for detailed comments explaining why clients stick around year after year.
Reviews that discuss regulatory compliance or that highlight specialized financial knowledge relevant to your industry are especially helpful. A trustworthy accountant leaves behind a trail of satisfied clients, eager to share their experiences.
Positive client stories online give you confidence in choosing someone who truly understands your financial situation or can support your business growth.
Make Your Final Decision
The right accountant will match your needs and fit your budget. Pick someone who speaks your language and makes money matters simple.
Choose a candidate that aligns with your needs and budget
Choosing an accountant means balancing skill and affordability. A while back I hired a pricey CPA, who didn’t grasp my small-business needs. My profit margins took a hit, and things only improved after switching to someone who understood smaller operations.
Look closely at each accountant’s pricing to avoid unexpected charges down the road. Some professionals offer flat-fee rates, others charge by the hour—pick whichever suits your cash flow.
A good accountant does far more than handle tax returns. They should help you budget carefully, manage cash flow, and encourage your business growth. Your accountant should speak plainly, reply quickly to your questions, and genuinely care about your progress.
After reviewing skills, experience, and pricing, always trust your gut instinct. Clear, easy communication forms the basis of a successful working relationship. Next, let’s cover how to smoothly introduce and onboard your new financial professional.
Ensure clear communication and expectations
After selecting an accountant who matches your needs and budget, immediately set clear paths for communication. Clear and open conversation creates a strong foundation for working smoothly with your financial pro.
In my experience, laying out exactly what you’re looking for prevents lots of issues later on. Your accountant needs to clearly understand your expectations, just as you should know exactly what services they’ll provide.
Straightforward talking prevents costly errors that might damage your company’s reputation. Ask your accountant to explain financial info with simple words rather than technical language.
If numbers make your head spin, request visuals—charts or graphs help a lot. Studies confirm that unclear communication often causes mistakes in financial documents and tax returns.
Set ground rules early: how often you’ll meet, what kind of reports you’ll receive, and how quickly your accountant should answer your questions about business spending or tax savings.
Onboard Your Accountant
The first week with your new accountant sets the tone for your financial future. Get your tax records, bank statements, and profit reports ready for a smooth start to this key business relationship.
Provide necessary financial documents
Your accountant needs certain documents to help you manage your finances smoothly. First, gather three key documents: a recent balance sheet, your latest income statement, and a current cash flow statement.
Together, these papers offer a clear snapshot of your financial health.
Next, pull together recent bank statements and copies of your sales invoices. These items help show where your money truly comes from. Also, have your Social Security Number and Employer Identification Number ready—your accountant needs these details for tax purposes.
If you’re running a business, collect all payroll reports, expense receipts, and previous tax filings, too. These documents can help your accountant find tax deductions you might otherwise overlook.
Nowadays, most accountants gladly accept digital versions of your paperwork through secure software. That makes sharing your financial details easier—and quicker—than ever. With all relevant info in hand, your accountant can truly help you make the most of your money.
Establish a communication schedule
Make a simple meeting schedule with your accountant to manage your money smoothly. Apps like Calendly help you quickly organize regular chats about your business costs and spending.
For my small company, monthly check-ins are perfect, with extra meetings planned around tax deadlines. Clearly tell your accountant how quickly you want answers back and how often to send financial summaries.
This way, both of you stay on the same page about profits, losses, and smart business decisions.
Now, let’s talk about how selecting an accountant might shift by 2025.
How Will Choosing an Accountant Evolve in 2025?
Accountants will see their roles evolve significantly by 2025—going beyond basic accounting tasks and becoming essential growth partners. Without solid financial guidance, business owners face real dangers.
For instance, around 30% already report tax-filing mistakes, errors that can lead to costly fines or penalties. Forward-thinking business leaders will choose accountants who deliver digital tools and remote options, offering easy access to financial records through accounting apps and mobile banking.
The accountant of the future should pinpoint areas where your profits are leaking and suggest how to improve your cash flow. They’ll also provide clear advice about expenses and useful tax breaks.
Financial specialists will grow even more critical for businesses looking for outside funding. Well-prepared financial records impress investors and lenders, proving your company is reliable and financially stable.
By 2025, great accountants will blend technical knowledge and practical industry understanding, helping assess company risks clearly. They’ll aid decision-making and eliminate the need to hire a full-time CFO.
Many small businesses will prefer professionals who clearly explain profit-and-loss statements in straightforward language. They’ll also offer actionable insights on stock market trends and interest rate shifts.
This evolving role means your accountant will become more than just a numbers person—they’ll turn into trusted financial advisors, guiding you toward smarter personal and business financial moves.
People Also Ask
What qualifications should I look for in a certified public accountant (CPA)?
Choose a CPA who is a member of the American Institute of Certified Public Accountants (AICPA). They should have experience working in your industry and feel comfortable using modern accounting software. Your CPA must also understand the specific tax advantages associated with your type of business.
How much does hiring a small business accountant cost?
The cost of hiring a small business accountant can vary greatly depending on experience levels and your geographic location. A full-time accounting clerk usually earns between $40,000 and $80,000 per year, while hiring a chief financial officer (CFO) can cost considerably more. Many small businesses lower their expenses by hiring remote employees.
Can an accountant help with personal finances too?
Definitely—I know plenty of CPAs who handle finances for both businesses and individuals. They can monitor your debit card transactions, organize deposits, and help boost your credit rating. This way, you always know exactly where you stand financially.
What should I include in the job description when recruiting an accountant?
Make your job description clear and straightforward. Include required software skills, experience managing inventory, and familiarity with profit and loss statements. List the responsibilities clearly, such as handling payment processing or evaluating financial risks. Indicate if experience with Mastercard Inc. or other specific payment providers is necessary. And don’t forget to mention employee perks or company benefits.
How long does the onboarding process take for a new accountant?
Bringing a new accountant onboard usually takes around two to four weeks. During onboarding, you set up their access to financial systems, teach them about your workforce processes, and educate them about your company’s specific accounting routines. An experienced recruiter can help speed things up.
Should I hire an in-house accountant or use outside auditors?
This choice depends heavily on the size of your business and your unique needs. An in-house accountant works right within your team and can handle daily financial tasks. On the other hand, outside auditors provide an independent checkup and specialized financial guidance. Many businesses do both—employing full-time staff for daily tasks, then hiring outside auditors during busy times like tax season or for important financial reviews.
