What credentials should a CPA have?

Look for an active CPA license in your state, which you can verify through your state's Board of Accountancy website. Some CPAs also hold additional designations like CFA, CFP, or CVA that signal specialty expertise. Always verify the license is current and in good standing — not revoked, expired, or under disciplinary action.

How do I find a CPA who specializes in my situation?

Start by identifying your primary need: individual taxes, small business accounting, estate planning, or real estate investing. Then search directories that filter by specialty, ask your network for referrals, or check the AICPA's Find a CPA tool. When you contact candidates, ask directly what percentage of their clients are in your situation.

What is a reasonable fee for hiring a CPA?

For an individual return without business income, expect $250–$500. Small business returns run $750–$2,500. Monthly bookkeeping and accounting services typically range from $500–$2,000 per month depending on transaction volume. Always get a written engagement letter that specifies scope and pricing before work begins.

How to Hire a CPA: A Step-by-Step Guide

May 13, 2026

Why Hiring the Right CPA Matters

A CPA is not just a tax preparer — they are a licensed financial professional who can represent you before the IRS, advise on entity structure, optimize retirement contributions, and plan multi-year tax strategies. Hiring the wrong one — or hiring none at all — costs most small business owners far more than the CPA's fee.

Step 1: Define What You Need

CPAs have different specializations. Before reaching out to anyone, clarify what you actually need:

Tax preparation only: Annual return filing for individuals or businesses
Tax planning: Proactive strategy throughout the year to reduce liability
Bookkeeping and accounting: Ongoing recordkeeping, financial statements, payroll
Audit representation: Defense before the IRS or state tax agency
Advisory services: Entity structuring, M&A, business valuation

Most small business owners need at minimum tax preparation plus quarterly planning. If you are running payroll or have multiple entities, add ongoing accounting to that list.

Step 2: Verify Credentials and Standing

The CPA designation requires passing the Uniform CPA Exam (a rigorous four-part test), meeting education requirements (typically 150 credit hours), and completing supervised work experience. Once licensed, CPAs must complete continuing professional education every year to maintain their license.

Verify any CPA you consider by searching your state's Board of Accountancy website. Look for:

License status: active (not expired, suspended, or revoked)
Any disciplinary history or complaints
License expiration date and renewal status

Step 3: Interview Multiple Candidates

Treat hiring a CPA like hiring any other professional. Interview at least two or three before deciding. Key questions to ask:

What percentage of your clients are in my industry or situation?
Who will actually prepare my returns — you, or a staff member?
How do you communicate with clients throughout the year?
What is your policy if I get audited?
How is your fee structured — flat, hourly, or retainer?

Step 4: Review the Engagement Letter

Before work begins, a professional CPA will provide a written engagement letter that spells out the scope of services, fees, deadlines, and responsibilities of each party. Read it carefully. If anything is vague — particularly around who is responsible for providing documents and what happens if a deadline is missed — get it clarified in writing.

Step 5: Start the Relationship Early

The worst time to hire a CPA is April 12th. The best time is August through October of the prior year, so your CPA can review your situation before year-end and implement strategies while there is still time. If you are starting a business, hire a CPA before you form the entity — entity choice has permanent tax consequences.

Browse CPAs by city to find licensed professionals near you, or use our find a CPA near me tool to filter by specialty.

Frequently Asked Questions

What credentials should a CPA have?: Look for an active CPA license in your state, which you can verify through your state's Board of Accountancy website. Some CPAs also hold additional designations like CFA, CFP, or CVA that signal specialty expertise. Always verify the license is current and in good standing — not revoked, expired, or under disciplinary action.
How do I find a CPA who specializes in my situation?: Start by identifying your primary need: individual taxes, small business accounting, estate planning, or real estate investing. Then search directories that filter by specialty, ask your network for referrals, or check the AICPA's Find a CPA tool. When you contact candidates, ask directly what percentage of their clients are in your situation.
What is a reasonable fee for hiring a CPA?: For an individual return without business income, expect $250–$500. Small business returns run $750–$2,500. Monthly bookkeeping and accounting services typically range from $500–$2,000 per month depending on transaction volume. Always get a written engagement letter that specifies scope and pricing before work begins.