Partnering with a professional accountant does more than ensure your small business’s books are accurate; it helps turn financial data into actionable insights. An accountant can act as a strategic advisor, helping you maintain financial health while navigating complex tax regulations. However, selecting the right person for such a sensitive role can be a challenge. After all, you’re trusting them with your money and, ultimately, your business’s success.
We created this guide to help you identify the right financial partner for your specific needs. Below, we cover key evaluation criteria, warning signs to watch for, and the tangible benefits a qualified accountant can bring to your organization.
What is an accountant?
An accountant is a financial professional who helps manage your business’s money-related tasks, including bookkeeping, tax planning and the preparation of key documents such as tax returns and financial statements, including profit and loss statements. Many accountants also act as advisors, helping business owners spot and avoid accounting mistakes like cash flow problems, overpayments and reporting inconsistencies before they become costly.
When hiring an accountant, you may also consider a certified public accountant (CPA). Hiring a CPA ensures you’re working with a licensed accountant who can prepare audited financial statements, such as balance sheets and income statements, and represent your business before the Internal Revenue Service (IRS). To earn and maintain their license, CPAs must pass a rigorous exam and complete ongoing continuing education. They also have unlimited representation rights, allowing them to handle audits, payment or collection issues and appeals on your behalf.
Accountants and bookkeepers play different roles. Bookkeepers focus on day-to-day transaction tracking and recordkeeping, while accountants use that information to provide analysis, tax planning and higher-level financial guidance.
How can you find the right accountant for your business?
When you’re looking to hire an accountant, start by getting clear on what your business actually needs. The more specific you are up front, the easier it is to find someone who’s a good fit. Take the following steps:
1. Make a list of your priorities.
Before you begin your search, outline your top accounting needs. While some accountants offer broad support, most specialize in certain areas. The right choice is someone whose strengths align with your highest priorities, not just someone who can “do it all.”
For example, a business with a high volume of inventory may benefit from an accountant experienced in inventory tracking, point-of-sale systems and retail accounting. A service-based startup, on the other hand, may need help with cash flow forecasting and tax strategy. As you review candidates, focus on professionals or firms with experience in the areas that matter most to your business.
2. Request referrals from your network.
One of the best ways to find a trustworthy accountant is through your own network of entrepreneurs and business professionals. There may already be a strong candidate working with people you know and trust. Ask around and pay attention to which names come up more than once.
When you get a referral, ask specific questions about your contact’s experience. Find out how long they’ve worked together, what areas the accountant specializes in, which services they provide and whether there are any limitations or issues to be aware of. Referrals are a strong starting point for building a shortlist of potential candidates.
Referrals aren't just useful when you're hiring service providers. Building referral relationships with other businesses can also help you generate
repeat business while strengthening long-term partnerships.
3. Search for reputable accountants with strong reviews.
Your network is a great starting point, but it shouldn’t be the only one. Expand your search by checking professional directories and online platforms with verified client reviews. Pay attention to recurring themes in the feedback, both positive and negative.
In addition to referrals and reviews, professional organizations can help you vet potential candidates. State CPA societies and the American Institute of Certified Public Accountants maintain directories of licensed CPAs who meet state certification standards. You can also search the IRS directory of credentialed tax professionals, which lists accountants and preparers with active preparer tax identification numbers.
When comparing options, always look for professionals who follow a fiduciary standard, meaning they’re required to put your business’s best interests first.
4. Meet with candidates and ask insightful questions.
Once you’ve narrowed your list to accountants who match your priorities and come well-recommended, it’s time to start meeting with them. While in-person meetings used to be the norm, video calls are now a perfectly practical way to get a sense of someone’s communication style and approach.
Before the conversation, be ready to share a quick overview of your business, including what you do, your industry, growth stage, number of employees or clients, and any business or accounting challenges you’re working through. That context helps candidates give more relevant, useful answers.
During each meeting, take notes and ask real-world questions that reflect how you actually operate. If possible, invite a business partner or trusted senior employee to join the meeting so you can compare impressions afterward.
Here are a few examples of questions to ask accountant candidates:
- Have you worked with businesses like mine before?
- How do you typically communicate with clients?
- Which accounting tools or platforms do you use?
- How do you charge for your services, and what should I expect to pay over a year?
- How would you respond to an IRS notice?
- How would you help manage a cash flow crunch?
- What accounting and finance certifications do you hold?
The goal isn’t to grill candidates; it’s to understand how they think, how they work and whether their approach fits your business.
5. Make a list of pros and cons.
After you’ve met with each candidate, take some time to compare your options side by side. Listing the pros and cons for each accountant can help clarify what really stands out and what might give you pause.
If you want to go a step further, you can create a simple scoring system that gives more weight to your top priorities and less to nice-to-have features. However you approach it, the goal is the same: narrow the field and make the decision easier. As you lay everything out, the right choice often becomes much clearer.
6. Compare costs with overall value in mind.
Cost matters, especially when you’re choosing an accountant. As you compare candidates, pay attention to how each firm structures its fees and what’s included. That said, the lowest price isn’t always the best indicator of value.
Instead, focus on what you’re getting for the price. For example, an accountant who charges more but offers proactive tax planning, clear guidance and ongoing support may end up saving you far more than they cost. In many cases, that kind of value is well worth the investment. (More on accountant costs below.)
What red flags should you avoid in an accountant?
When you’re evaluating an accountant, due diligence matters just as much as credentials. Even if an accountant’s actions appear to benefit you financially, they should always operate honestly and within the law. Cutting corners can expose you — not them — to serious legal and financial risk.
“Be wary of accountants with a lack of credentials, a history of short-term work contracts or poor communication,” cautioned Logan Allec, a CPA and personal finance expert. “These issues can turn into much bigger problems over time.”
As you vet candidates, watch out for these red flags:
- A willingness to bend the rules: An accountant who is comfortable lying to the IRS to save you money may be just as comfortable misleading you. Ultimately, you’re legally responsible for the information filed on your behalf.
- Loose ethics or oversharing: If an accountant discusses other clients’ finances with you, it’s a sign they may not respect confidentiality. A trustworthy professional should be able to explain concepts without sharing private client details.
- Too much control: Be cautious if an accountant pushes to become a signer on your accounts, pressures you to sign documents without review or discourages questions. The relationship should feel like a partnership, not a power imbalance.
- Guaranteed results: No legitimate accountant can promise a large refund or specific tax outcome without fully reviewing your finances. Guarantees are a major red flag.
- Missing credentials: An accountant who prepares tax returns for pay must have an active preparer tax identification number (PTIN). That number should also appear on any returns they file for you.
A
tax consultant can be a good option for short-term needs, like filing a complex return or getting help with tax planning. If you're looking for ongoing financial guidance, compliance support and year-round insight into your business's finances, an accountant or CPA is usually a better long-term fit.
What qualities should you look for in an accountant?
Technical skills matter, but they’re only part of the picture. You’re trusting this person with sensitive information and long-term decisions, so the right accountant should also bring strong judgment, clear communication and a style that works for you.
Consider the following qualities a trusted accounting professional should possess:
- Attention to detail: A good accountant pays attention to the details, catching minor issues and errors before they become bigger problems. You can often spot this quality early on by noting how well prepared they are and the kinds of questions they ask about your business. If a candidate seems unprepared or doesn’t ask probing questions, that’s a sign they may not be fully invested or detail-oriented.
- Strong communication skills: Credentials alone aren’t enough. You also want an accountant who can clearly explain what’s happening with your finances and answer questions without relying on jargon. If you don’t understand something, you should feel comfortable asking for clarification. “Make sure they respond to you in a timely manner and that you understand exactly what they’re telling you,” advised business accounting expert Jaime Thompson. “Accounting jargon is considered by some to be its own language. If you don’t understand what the accountant is saying, don’t just shake your head and pretend like you do.”
- Trustworthiness and reliability: If your accountant gives you a bad vibe, trust your gut and move on. You’re giving someone access to sensitive personal and business information, and it’s reasonable to expect professionalism, discretion and respect. You should feel comfortable asking questions or admitting mistakes without feeling judged. “Obviously, you should find an accountant who knows what they’re doing,” Thompson said. “But it makes a world of difference when you find one who is personable.”
Many accountants work more efficiently when their clients already use one of the
best accounting software platforms, such as cloud-based tools that support real-time reporting, automation and easy collaboration.
What are some benefits of using an accountant?
There are plenty of areas of your business you can handle on your own, especially early on. But knowing when to bring in outside expertise is an important part of growing wisely. Even if money feels tight, accounting support can often pay for itself by saving you time, reducing risk and helping you make better decisions.
Here are some of the key benefits of hiring an accountant.
They save you time and help prevent costly mistakes.
If you’re spending hours managing your finances instead of focusing on growth, it may be time to get help.
“If your valuable time is being eaten up by managing your finances instead of growing your business, then you may need to consider hiring an accountant,” Allec advised. “Having someone to manage your finances, whether you’re hiring a professional to file your taxes or do year-round bookkeeping, saves you from making costly mistakes that could stunt the growth of your business.”
“Think about how much time and effort you spend on trying to manage your finances yourself,” Thompson added. “Not to mention the possible errors you could incur and related losses from poor financial decisions.”
They help you choose the right business structure and accounting method.
An accountant can guide you toward a business structure that fits your goals and operations. Choosing between options like a limited liability company, partnership or sole proprietorship isn’t always straightforward, and the wrong choice can have long-term tax and liability implications.
Accountants also help businesses select the right accounting method — typically cash- or accrual-based accounting. Many new companies start with cash-based accounting, which records income and expenses when money changes hands. In some cases, however, the IRS requires businesses (especially those with inventory) to use accrual accounting, which records income and expenses when they’re billed rather than paid.
They reduce stress at tax time.
Tax season is one of the most common reasons business owners turn to accountants — and for good reason. Business taxes are more complex than personal returns, often involving estimated quarterly payments, self-employment taxes and industry-specific deductions.
An accountant helps ensure your filings are accurate and up to date with current tax laws. They can also prepare required financial statements, manage payroll and ensure employee tax information is handled correctly, all of which lowers your risk of costly errors or tax audits.
They support smarter business decisions.
Beyond compliance, accountants can play a valuable role in strategy and business decision-making. If you’re building a business plan, planning a budget or creating financial projections, an accountant can help you map out realistic paths toward your goals.
They can also provide insight during major decisions, such as whether to expand, merge, sell or acquire another business. By analyzing financial records and flagging potential tax implications, accountants help you understand the full picture before you commit.
How much does it cost to hire an accountant?
The cost of hiring an accountant varies widely based on experience, credentials and the type of work you need. It’s also important to distinguish between what accountants earn and what they charge clients.
According to the U.S. Bureau of Labor Statistics, accountants and auditors earned a median hourly wage of $39.27, or $81,680 per year, in 2024. Keep in mind that this represents employee salaries, not the rates independent accountants usually bill.
In practice, small businesses often pay more when working with an independent accountant or CPA. Rates tend to be higher for specialized services like tax planning, advisory work or ongoing financial support. Many accountants also offer flat or monthly pricing based on the level of service you need.
How do you pay an accountant?
Before hiring an accountant, it’s helpful to understand how they structure their fees. Standard pricing models to be aware of include the following:
- Hourly: Many accountants still bill by the hour. Independent CPAs usually charge higher rates, especially in larger cities, with hourly fees that can reach $150 to $400 or more, depending on the job.
- Flat fee: Some accountants charge a flat monthly or quarterly rate for a defined set of services, such as bookkeeping, tax filing or ongoing support. This pricing model is increasingly popular because it offers predictable costs and fewer billing surprises.
- Percentage-based fee: In some cases (usually when investment or asset management is involved), fees may be based on a percentage of assets managed. These rates often range from about 0.50 percent to 1.5 percent, depending on the scope of responsibility. This model is more common among financial advisors than traditional accountants.
- Brokerage or commission-based model: Less commonly, professionals may earn commissions based on investment products they recommend. If this model comes up, proceed with caution. Commission-based compensation can create conflicts of interest, particularly if recommendations are tied to higher payouts rather than your business’s needs.
Tejas Vemparala and Simone Johnson contributed to this article. Source interviews were conducted for a previous version of this article.
