How to Hire a CPA as a Freelancer or Small Business Owner

As a freelancer, managing your finances can become more complex every year. You’ve got money coming in from multiple clients, you’re tracking multiple income streams, handling business expenses, paying contractors, and trying to plan for the future. The financial side of your business can quickly become overwhelming, and knowing how to hire a CPA has become more crucial than ever.

Did you know 78% of self-employed people report they don’t know how to maximize potential deductions and write-offs? Learn more.

If this sounds like you, it might be time to figure out how to hire a CPA. Let's walk you through the process.

What Is a CPA? 

A CPA, or Certified Public Accountant, is an accounting professional who has passed the rigorous CPA exam and meets the state’s education and experience requirements. They’re bound by a strict code of ethics. 

CPAs dive deep into numbers, ensuring your taxes are on point and helping you plan financially for the future of your business.

CPA vs. bookkeeper: What’s the difference?

It's common to mix up bookkeepers and CPAs, but they serve two distinct roles.

A bookkeeper manages your everyday business finances—recording transactions, monitoring income and expenses, and keeping the financial side of your business organized. On the other hand, a CPA tackles more advanced tasks like tax planning, filing, and auditing services.

So, which one do you need for your small business? 

• Bookkeeper: If you need daily financial tracking, balance checks, and regular financial reports like profit and loss statements.

• CPA: For in-depth tax planning, complicated financial decisions, and filing duties.

• Both: If you have diverse income streams, numerous deductions, or a complex business structure, both might be beneficial. Some CPAs offer bookkeeping for small businesses, so it's possible to find both services under one roof.

5 Signs It’s Time to Outsource Your Bookkeeping or Accounting

If you're on the fence about outsourcing your bookkeeping or accounting, here are some signs that it might be time:

• You’re short on time. If managing your finances is starting to bleed into the weekends or “off’ hours, it might be time to get some help. The same goes if you spend more hours on freelance bookkeeping or taxes than on your core business tasks.

• You’ve noticed some errors and inconsistencies. Let’s face it: Mistakes happen, and they sting when they do. Maybe you missed a tax payment deadline or filed your taxes late last year because it was too much to keep track of.

• You’ve experienced business growth. You’re making more money. Sounds great, right? Not quite. Your financial transactions have increased in volume and complexity, making them harder to manage, because you now have money coming in from multiple income streams. 

• Taxes feel complicated. You find taxes to be... well, taxing. Maybe you're unsure about tax deductions, credits, and compliance, or you’ve starting doing business in multiple states, or compliance, and you want to keep everything above board. 

• You’d rather focus on your business. You have big ideas about how to grow your business, but you’re bogged down in day-to-day financial tasks, you want to focus on honing your craft and serving your clients.

Tip: Don't rush to hire a CPA just because other business owners are doing it. The right time to get help with your finances depends on you: your comfort level with numbers, how complex your business is, and how you want to spend your time. There's no magic revenue number or milestone that means you "should" hire one.

9 Steps to Hire the Right CPA

Use the steps to learn how to hire a CPA who’ll be a good match for you and your business.

1. Get clear on your business needs

Before searching, figure out exactly what you need, and rank those tasks in order of importance. Do you just want someone to help with your annual tax return, or do you also need help with bookkeeping for your small business? It’s also important to think about the long-term goals of your business to make sure you find a CPA who can grow with you. Knowing what you need–and in what priority order–will help you as you move into the next step of your search. 

2. Tap into your network

Referrals are gold. Ask fellow freelancers or business owners for recommendations based on their personal experience. You can also ask on social media or in online communities. Facebook groups like Freelancing Females, Black-Owned Business Portal (BlackOBP), and Small Business Connection are great spaces to connect with other entrepreneurs. 

3. Check qualifications

Not all accountants are CPAs. As we mentioned above, CPAs have passed rigorous exams, met specific education requirements, and adhere to a strict code of ethics. You’ll want to start by confirming their CPA license status through your state's board of accountancy website, and verify any additional certifications they claim to hold. Check their professional memberships and research whether they've had any disciplinary actions filed against them. This due diligence might seem excessive, but it's important for protecting your business in the offchance something goes awry.

4. Reach out to candidates and schedule interviews

Once you’ve narrowed down your list, schedule a few introductory chats with prospective CPAs.  Imagine you're catching up over coffee. Are you comfortable? Do they 'get' you and your work? Interview multiple candidates to gauge their knowledge, experience, and your comfort with them. Here are some sample interview questions:

• What experience do you have with freelancers or 1099 contractors?

• How do you charge? Fixed rates, hourly, or a retainer?

• Will you help with my quarterly estimated taxes or freelance bookkeeping? 

• What happens if I get audited? Will you represent me?

• How often will we meet? 

Tip: Ask them to explain a complex financial topic in your industry. Pay attention to how they answer it. Do they break it down in an easy-to-understand way? This will give you a window into how they’ll explain complicated financial things moving forward.

5. Make sure they’re tech-savvy

We live in a digital age. Your CPA should be familiar with modern accounting tools, cloud-based platforms, and perhaps even industry-specific software you use. If you already use bookkeeping software, will they incorporate that into their workflow, or will they expect you to adopt their procedures and change systems? These are important questions to get clarity on before moving forward. 

Did you know? Found makes it easy to collaborate with your accountant. When you share access to your account, they can view and edit your account activity, view and download reports and your Schedule C, and categorize your expenses—all in one place, saving you time and money. Learn more.

6. Discuss communication

Clear communication can prevent a host of problems, especially around sensitive topics such as finances. How often will this CPA touch base with you? Will they just pop in to help you navigate tax season? Or, will they be around to help with quarterly estimated taxes or monthly bookkeeping? 

Discuss preferred communication channels and protocols for handling urgent matters. If you have an issue, how will you communicate with them? How quickly can you reasonably expect a response?

Tip: Remember, tax season can be hectic, so understanding their availability during peak periods is crucial to make sure your expectations are set.

7. Check their location (if it matters)

With technology, you can work and communicate from anywhere. But it’s important to consider whether you prefer in-person meetings. If so, check their office locations. If you’re open to virtual, be sure to check their time zone, too. 

8. Ask about their fee structure

No one likes nasty surprises, especially when it comes to a bill you have to pay. CPAs can charge by the hour, a flat fee, or a monthly retainer. Understand their billing structure so you know what to expect and can build these costs into your business budget. Here are some sample questions to ask in your introductory meeting:

• Do you offer flat-fee packages? What's included?

  • If not, what's your hourly rate and does it vary by service type?

• How do you handle and bill for work outside the original scope?

• Is there a retainer or minimum monthly commitment?

• What's your billing cycle and what payment methods do you accept?

• What are the typical costs for quarterly and year-end tax filing?

• Are there additional fees for software?

• What are your terms for contract termination?

• When was your last fee increase? How and when do you communicate these increases to your clients?

Tip: A good contract or proposal will outline the fee structure, so you can also ask for a copy of that. 

9. Trust your gut

You’ll be sharing intimate financial details with the CPA you choose. If something feels off—even if you can't pinpoint why—consider other options. Don’t feel obligated to hire a CPA just because they’ve taken the time to meet with you. 

How Much Does It Cost to Hire a CPA?

Hiring a small business CPA can vary widely in cost. Here's a quick rundown:

• Hourly rate. CPAs who work by the hour can charge anywhere from $150 to $250 or more. The price often depends on their experience and where you're located. Bigger cities might have higher rates.

• Fixed fee. Some CPAs might offer a set fee for specific services, like filing taxes. For instance, it can cost between $1,000 to $1,500 or more to prepare your annual personal and business tax returns.

• Monthly retainer. If you need ongoing services, like bookkeeping or full-service payroll, a CPA might charge a monthly fee. This could range from $100 to over $200 a month, depending on the service.

Red Flags to Look For When Hiring a CPA

While most CPAs are trustworthy and take their code of ethics seriously, there are certain red flags that can and should give you pause during your search.

• Guaranteed tax refunds or savings: No ethical CPA can promise specific refund amounts before knowing your finances. If they make bold claims about guaranteed returns or unusually large deductions, this could be a big red flag about how they operate.

• Pushy sales tactics: A good CPA will let their expertise speak for itself and shouldn't pressure you to sign contracts immediately or upgrade to packages that feel outside the scope of your current needs. 

• Inconsistent communication: If a CPA is difficult to reach during the initial consultation phase or takes days to respond to simple queries, this is likely a trend that will continue. You’ll want to look for prompt replies and a willingness to explain complicated topics, sometimes more than once.

• Outdated technology or systems: In 2025, if a CPA is still relying entirely on paper-based systems or obsolete software, it’s likely they’ll struggle with keeping up with your business needs. They should be comfortable with current accounting software, secure client portals, and digital document management.

• Unclear pricing: Reputable CPAs are up-front and transparent about their fee structure. If a CPA can’t provide clear pricing information or hesitates to discuss costs directly, this should be a red flag.

• Limited availability during peak times: While tax season is undoubtedly busy, your CPA should have systems in place to handle their client load. If they're overwhelmed or unavailable during critical periods, this might indicate poor practice management.

• Resistance to providing references: While client confidentiality is important, experienced CPAs should be able to provide references from satisfied clients who’ve given permission or maintain verifiable reviews of their services.

Simplify Your Accounting with Found

While a CPA can offer in-depth financial planning and tax advice, it can be pricey and more than some freelancers need. If you're looking for a cost-effective alternative to figuring out how to hire a CPA or bookkeeper, Found’s all-in-one banking platform manages your bookkeeping, tracks your tax deductions, and even lets you pay your quarterly federal taxes through the app. 

When you’re ready to bring a CPA on board, Found has you covered, too. Say farewell to back-and-forth communications and confusing discrepancies, simplifying how you work with your accountant. Sharing your Found account information with your accountant is simple and easy. They’ll be able to access your account activity, profit and loss report, and tax documents. It’s safe and secure, and you can edit or remove access at any time.

So whether or not you’re working with a CPA, a Found account might just be the financial assistant you've been searching for. Sign up for free today.

The information on this website is not intended to provide, and should not be relied on, for tax advice. Found is not a filing service, Found partners with Turbo Tax for filing. Restrictions may apply, see full terms here.