Questions to Ask a New Accountant
Questions for the first meeting with an accountant you are considering hiring, covering credentials, who actually does the work, fees, deadlines, representation if you are audited, and how they handle your records. Written for small business owners, freelancers and anyone whose taxes have outgrown software.
The questions
Open any question for the note
What licence do you hold, and who regulates you?
Why ask it
The word accountant is not restricted in most places, so ask specifically about CPA, chartered or enrolled agent status. Only certain credentials allow someone to represent you before the tax authority, which matters exactly when things go wrong.
Who will actually do my work, and who reviews it?
Why ask it
In many firms the partner you meet hands the file to a junior preparer you never speak to. Ask for the name and the review process, because this is the most common gap between the pitch and the service.
How many clients do you have that look like me?
Why ask it
A number rather than a claim of experience. Someone with a handful of clients in your industry knows its specific deductions and audit triggers, and someone with none will be learning at your expense.
How do you charge: hourly, fixed fee, or by return?
Why ask it
Hourly billing makes you hesitate before asking a question, which is the opposite of what you want. Fixed annual fees encourage contact but need a clear scope, so ask what falls outside it.
What would you expect my total fees to be for a full year, including everything?
Why ask it
Quotes are usually given per return and then supplemented by bookkeeping, filings and calls. Asking for the annual figure surfaces the extras, and a refusal to estimate is itself an answer.
What do you charge for a phone call or a quick question during the year?
Why ask it
This single answer determines whether you will call before making a decision or after. Some firms include reasonable contact in the annual fee, and others bill in six-minute increments.
What do you need from me, in what format, and by when?
Why ask it
A specific list and a date tells you the firm is organised. Vague answers here mean you will be chased in March for documents you could have gathered in January.
What happens if a deadline is missed because something was late on your side?
Why ask it
Ask who pays the penalty and interest. A firm that has thought about this will have a clear answer about their errors and omissions cover, and one that has not may leave you carrying it.
If I am audited or get a notice, do you handle it, and is that billed separately?
Why ask it
Notices are common and mostly routine, but the cost of representation can exceed a year of fees. Establish now whether it is included, discounted or charged at a premium rate.
What software do you use, and what will I have to log into?
Why ask it
You will be living in whatever bookkeeping and document portal they choose, and moving off it later is painful. Ask whether the data stays accessible to you if the relationship ends.
Do you do bookkeeping as well, or do I need someone separate?
Why ask it
Many accountants prepare returns but will not maintain your ledgers, and discovering that in the first tax season is expensive. If they recommend a bookkeeper, ask whether there is a referral arrangement.
Looking at last year's return, what would you have done differently?
Why ask it
The best single test of a prospective accountant. Bring the return and see whether they find something concrete, hedge politely, or criticise the previous preparer without specifics.
How do you feel about aggressive positions on a return?
Why ask it
Preparers sit on a spectrum from conservative to willing to push, and you want to know where yours is before a disagreement. An accountant who promises large refunds without examining your records is a warning sign.
Should my business be structured differently, and what would changing it cost?
Why ask it
Ask for the cost and paperwork alongside the recommendation. Restructuring advice sounds free until you learn about filing fees, payroll setup and the annual compliance that follows.
How should I be paying myself, and what should I be setting aside?
Why ask it
Estimated payments and payroll timing cause more penalties for small businesses than anything else. A good answer includes specific amounts and dates rather than a general instruction to save for tax.
When in the year should we be talking, other than at filing time?
Why ask it
Most planning has to happen before the year closes, so a firm that only appears at deadlines cannot help you reduce anything. Ask whether a planning meeting is scheduled or left to you to request.
How quickly do you normally reply during your busiest weeks?
Why ask it
Everyone is responsive in the off season. Ask what happens in the last month before the filing deadline, since that is when you will most need an answer.
Which questions are outside what you do, and who do you send people to?
Why ask it
Investment advice, legal structuring and international filings often sit outside a general practice. A clear boundary is reassuring; a claim to handle everything usually is not.
Can I speak to two clients who have been with you more than three years?
Why ask it
Length of relationship matters more than satisfaction, since problems tend to appear in the second or third year. Reluctance to provide anyone is worth taking seriously.
If I decide to leave, what do I get and how long does it take?
Why ask it
Asking about the exit at the start is normal practice and tells you how they treat records. You want your files and prior returns handed over promptly rather than held while a final invoice is settled.
Choosing an accountant
Practical guidance for the conversation itself
Before the meeting
Bring last year's return
It turns an abstract conversation into a specific one and gives you a way to compare candidates: ask each of them what they would have done differently. The quality of that answer is the most reliable signal you will get in an hour.
Verify the licence yourself
State and national registers are public and take a minute to search. Check the credential and any disciplinary history before the meeting rather than relying on what is printed on the website.
Write down what you actually need
A single annual return, monthly bookkeeping and quarterly planning are three different engagements at three different prices. Deciding first stops you being sold the largest package.
Reading the answers
Specific beats confident
An accountant who says they will need to check something before answering is usually more reliable than one who answers every question instantly. Tax rules turn on details of your situation that they do not yet have.
Watch how they talk about the tax authority
Someone who treats notices as routine correspondence to be answered is describing normal practice. Someone who frames them as battles, or promises they never happen, is telling you something about how they file.
Notice who they will not work with
Practices with a clear sense of the clients they serve well tend to serve them well. A firm that says yes to every size and type of client is often stretched too thin to notice your details.
Common mistakes
Choosing on price alone
The cheapest preparer becomes expensive the first time a deduction is missed or a filing is late. Compare the total annual cost against what each firm actually includes, especially calls and notices.
Hiring in February
Good firms close their books to new clients before the filing season, and anyone with capacity in the last few weeks is either new or has been left by others. Start looking in the quiet months.
Believing a refund promise
No one can predict your refund before seeing your records. A specific promise at the sales stage suggests positions you may have to defend yourself later.
Handing over everything and disengaging
You sign the return and you are responsible for what is on it. Read the summary, ask about anything you do not recognise, and keep your own copies of what you provided.