How to Hire a CPA as a Small Business Owner

Do you really need a CPA for your small business?

Most small business owners don't need a CPA when they're just starting out. But you probably need one if you're dealing with multiple income streams, have employees or contractors on payroll, working across state lines, or if managing your business finances is taking up more time than running your actual business.

The right time to hire a CPA depends on your comfort with numbers and business complexity, not your revenue. If you're stressed about tax compliance, making bookkeeping errors, or just want to focus on growing your business instead of managing spreadsheets, that's when it makes sense.

What does a CPA actually do?

A Certified Public Accountant (CPA) is licensed by your state to handle complex financial tasks. They've passed rigorous exams and follow strict ethics rules. CPAs help with tax planning, filing, audits, and strategic financial decisions for your business.

CPA vs. bookkeeper: Which do you need?

• You need a bookkeeper if: You want help tracking daily transactions, balancing accounts, or generating regular profit and loss statements.

• You need a CPA if: You need help with tax strategy, filing complicated returns, handling audits, or making big financial decisions for your business.

• You might need both if: You have complex income streams, lots of deductions, or a complicated business structure. Some CPAs also offer bookkeeping services, so you can get both from one provider.

5 Signs It’s Time to Hire a CPA

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’re making mistakes: 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.

• Your business is growing: 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. Figure out exactly what you need

List out what you need help with and rank them by priority. Just annual tax filing? Quarterly estimated taxes? Payroll processing? Full bookkeeping? Business entity structure advice? Strategic tax planning for growth? Knowing your priorities helps you find the right fit and avoid paying for services you don't need.

Think long-term, too. If you plan to hire employees, expand to new locations, or eventually sell your business, find someone who can support those goals.

2. Ask other business owners for recommendations

Personal referrals are the best starting point. Ask other small business owners in your network who they use and what their experience has been like. 

Try posting in online communities like:

• Local chamber of commerce or small business associations

• Industry-specific Facebook groups or LinkedIn communities

• Business owner groups in your area

3. Check qualifications

Not all accountants are CPAs. Make sure they actually have:

• Current CPA license (verify through your state's board of accountancy)

• No disciplinary actions on record

• Relevant professional memberships (like AICPA)

• Any specialized certifications they claim

This might feel excessive, but it protects your business if something goes wrong.

4. Interview multiple candidates

Schedule intro calls with at least 3 CPAs. Treat it like a conversation, not a formal interview. Pay attention to whether you feel comfortable with them. Do they 'get' you and your work? Interview multiple candidates to gauge their knowledge, experience, and your comfort level with them.

Questions to ask:

• What experience do you have with small businesses in my industry?

• 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 communicate, and what's included in regular check-ins?

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

Your CPA should work with current accounting software and cloud-based systems. Ask if they'll integrate with your existing bookkeeping tools or if they'll require you to switch to their systems.

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. Set communication expectations

Get specific about:

• How often you'll meet or check in

• What their typical response time is

• How they handle urgent questions

• Whether they're available outside tax season

If they're hard to reach during your initial conversations, it likely won't get better once you're a client.

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. Understand exactly what you’ll pay

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 CPA will provide this in writing, either in their initial proposal or contract.

9. Trust your instincts

You'll be sharing sensitive financial information with this person. If something feels off—even if you can't explain why—keep looking. You're not obligated to hire someone just because you had a consultation call.

What does a CPA cost?

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.

Is there an alternative to hiring a CPA?

A CPA provides deep expertise in tax planning and financial strategy, but they can be expensive and might be more than you need right now—especially for newer or smaller businesses.

Found offers an alternative for small business owners who need organized finances without the full CPA price tag. Found’s business banking platform has built-in bookkeeping features and tracks potential tax write-offs for you.

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, and you can leave comments on transactions securely in the platform. It’s safe and secure, and you can edit or remove access at any time.

The information on this website is not intended to provide, and should not be relied on, for legal or tax advice.