Recent studies show that 82% fail due to cash flow problems. That means even businesses with great products and steady sales can struggle if their finances aren’t managed correctly. Taxes pile up, bookkeeping gets messy, and one bad financial decision can put everything at risk.
A CPA will handle your taxes and keep your books in order. However, a good CPA will make your small business financially stronger, more efficient, and better prepared for growth. They don’t just record numbers—they help you understand them, plan for the future, and avoid costly mistakes.
This blog post will walk you through exactly what to look for in a CPA, how to find a good CPA for small businesses and the key questions to ask before making a decision.
Determine Your Small Business CPA Needs
Before finding the right CPA, take a look at your accounting and tax needs, considering your financial situation, business structure, and goals.
Most small business CPA requirements consist of the following:
- Tax Preparation: Ensure that the CPA can meet small business needs for taxes at all levels—federal, state, and local.
- Bookkeeping: If a business does not have a dedicated internal bookkeeping department, check that the CPA supports this.
- Payroll Services: You may require a CPA to handle payroll and compliance with labor laws.
- Financial Reporting: CPA can help with profit and loss statements and other financial statements.
- Business Planning: When starting or expanding a business, a CPA can help with budgeting and forecasting.
- Consulting on Tax Strategy: A proactive CPA can provide ideas around minimizing taxes, maximizing deductions, and getting your affairs in order financially.
- Audit Support & IRS Representation: If your business is audited, a CPA can represent you before the IRS and state agencies.
- Entity Structure Guidance: A CPA can advise on whether an LLC, S-Corp, or C-Corp is best for your tax situation and long-term growth.
- Sales Tax Compliance: A CPA ensures you collect, file, and remit sales tax correctly, especially if you operate in multiple states.
- Expense Management & Cost Reduction: Identifying areas to cut costs and improve profitability through financial analysis.
- Loan & Financing Assistance: Helping with financial statements, business credit, loan search, and investor funding acquisition support.
- Succession Planning: Assisting with business transition planning, whether passing it on to family or selling to a new owner.
Your clarity about specific areas of difficulty will help you find accountants and CPAs with expertise as per your business needs.
Read more: Understanding the differences: Tax Accountant vs. CPA.
Qualifications to Look for in a Small Business CPA
When figuring out how to find a good CPA for small business, it is important to be sure that the chosen one has state-certified public accountant qualifications. Beyond basic accounting skills, the right CPA brings expertise that helps businesses stay compliant, reduce tax liabilities, and manage finances efficiently.
Here’s what you can look for:
Professional Certifications
To be a Certified Public Accountant, a professional must pass the rigorous CPA exam, meet experience requirements, and maintain continuing education credits to stay up-to-date with tax laws and accounting practices.
A certified CPA is more credible than an accountant with no formal designation. Here are key certifications and credentials to consider:
| Certification | Description |
| CPA (Certified Public Accountant) | Ensures that the accountant meets high ethical and professional standards. Can prepare, file, and represent taxpayers before the IRS. |
| Enrolled Agent (EA) | An IRS-authorized tax practitioner who can represent clients in IRS audits. |
| Certified Management Accountant (CMA) | Concentrates on management accounting and financial strategy, which is beneficial for businesses that require in-depth financial planning. |
| Personal Financial Specialist (PFS) | A CPA who specializes in financial planning, investing, and wealth management. Ideal for small businesses seeking long-term financial guidance. |
| CITP (Certified Information Technology Professional) | CPAs with this certification specialize in technology-driven accounting, ideal for businesses using advanced accounting software or automation. |
| ABV (Accredited in Business Valuation) | Important if you need financial insights for selling, merging, or valuing your business. |
Industry-Specific Experience
One of the most important factors in choosing a CPA is industry-specific and software experience. Different industries have unique accounting needs.
Here’s what to check:
- Understanding of Industry Regulations: An industry-savvy CPA is familiar with the specific tax credits, deductions, and regulations in your sector.
- Software Expertise: Modern accounting relies on technology, and a good CPA should be proficient in tools that streamline financial management. Look for expertise in:
- For efficient bookkeeping and reporting, consider using QuickBooks, Xero, or FreshBooks.
- Cloud-based accounting solutions for real-time updates and document access.
- Cybersecurity best practices to protect sensitive financial data.
- Experience with Businesses of Similar Size: A CPA who has worked with businesses of similar revenue and structure understands the challenges you face, from payroll to cash flow management.
Where to Find Qualified CPAs for Small Businesses?
Before diving into how to find a good CPA for small business, you need to know where to look for a qualified CPA. You can check some of the best sources for finding qualified CPAs, such as:
- Online Directories: Websites like CPA Verify help you search for licensed CPAs in your area. A certified public accountant will also be registered with the IRS and is searchable in the IRS directory.
- Professional Associations: The American Institute of CPAs (AICPA) allows users to search their directories, which list licensed professionals.
- Referrals from Other Small Business Owners: Other small business owners who use CPAs successfully can prove to be excellent sources for referrals.
- Industry Associations: Various industry groups maintain a database of qualified accountants specializing in your sector.
Evaluating Potential CPAs for Your Small Business
After compiling a list of potential CPAs, the next step is evaluating their fit for your small business. Here’s how you assess potential candidates for small business CPA services by asking the right questions.
1. Ask the Right Questions—And Know What to Look For
A CPA can check all the boxes on paper but may not align with your business needs in practice. During initial consultations, ask the following questions and pay attention to their responses:
- What experience do you have with businesses like mine?
Look for a CPA who understands your industry’s tax rules, deductions, and financial pain points.
- How do you typically work with small business owners?
Do they just handle taxes, or do they provide ongoing financial guidance?
- What’s your preferred communication style and availability?
A good CPA should be accessible and responsive, not just around tax season.
- What’s included in your pricing, and are there any extra fees?
Look for clear, upfront pricing with no hidden costs.
2. Compare How CPAs Approach Business Finances
A CPA should do more than just keep your books clean. The best ones actively help you improve your financial health. When evaluating candidates, consider:
✔ Proactivity: Do they offer advice before problems arise, or do they just react when you bring up concerns?
✔ Strategic Planning: Can they help with budgeting, forecasting, and long-term growth strategies?
✔ Tech-Savviness: Are they comfortable using modern accounting software and cloud-based tools for real-time financial tracking?
3. Watch for Red Flags
Even if a CPA has great credentials, certain signs indicate they might not be the right choice:
- Unclear Pricing: The lack of a clear pricing system may result in unexpected additional expenses.
- Lack of responsiveness: Delays in responses alongside missed follow-ups may indicate subpar client service from the company.
- No References or Case Studies: A reputable CPA should be able to provide client success stories.
- Overpromising Results: Be cautious of CPAs who guarantee tax savings without reviewing your financials.
4. Make an Informed Decision
After evaluating potential CPAs, compare certified public accountant qualifications, experience, communication style, and pricing side by side. The right CPA should:
- Have experience in your industry.
- Be accessible and easy to communicate with.
- Offer value beyond just tax preparation.
- Fit within your budget without hidden costs.
Understanding CPA Service Fees
Hiring a CPA comes with different pricing models, and understanding them helps you budget effectively. While costs vary based on services, complexity, and location, here are the most common fee structures:
Common CPA Pricing Models
| Fee Model | Description |
| Hourly Fees | A CPA charges a set rate per hour for their services. It is ideal for ad hoc projects. |
| Fixed-Fee Pricing | A flat fee for a specific service, such as tax preparation, budgeting, or business planning. |
| Retainers or Subscription Model | A recurring charge for ongoing services and assistance. |
| Project-Based Fees | Charges are based on the complexity of a one-time service, like an audit or business valuation. |
Average CPA Costs for Small Businesses
The total expense for employing a CPA varies depending on business dimensions, transaction quantity, and needed expert qualifications. Below is an estimate of what small business owners can expect to pay for common CPA services:
| Service | Average Cost |
| Simple Individual Tax Return | $400–$550 |
| Complex Individual Tax Return | $550–$1,500+ |
| Basic Small Business Tax Return | $750–$1,500+ |
| More Complex Business Returns (LLC, S-Corp, Partnership, Corporation) | $1,500–$5,000+ |
| Bookkeeping Services | $109 per hour |
| Payroll Processing | $100 per hour |
Pro Tip: Discussing pricing with a CPA upfront ensures transparency and prevents unexpected costs, helping you choose the right financial support for your business.
Hire Focus CPA for Your Small Business CPA Needs →
Choosing a CPA for business is not easy. But now that you know how to find a good CPA for a small business, make sure you keep everything that we discussed in the blog post in mind.
Talking about the right CPA, Focus CPA, with 20+ years of experience serving businesses in California and beyond, we have a team of certified professionals who understand the financial challenges small business owners face. From bookkeeping services, CFO advisory consulting, and business valuation services, we provide the expertise you need to manage your finances with confidence.
Get in touch today and let’s build a stronger future for your business.
Small businesses should meet their certified public accountant at least once a quarter to review financial performance, discuss concerns, prepare for upcoming tax deadlines, and address any business decisions with financial implications.
While in the early stages, a better strategy would be to talk with them at least once a month. However, regular meetings are crucial around tax deadlines to ensure accurate reporting and tax planning.
Absolutely. Through complete insight into the financial condition of the firm, the CPA can decide what loans work best while helping with paperwork and steering clients toward secure funding methods.
A small business CPA needs to demonstrate a mastery of accounting software programs that include QuickBooks, Xero, and FreshBooks. To best serve clients, the professional needs training in both cloud-based accounting systems and real-time access, together with immediate system updates.
When hiring a CPA, the core accounting principles remain the same. Nonetheless, the main distinction between an online small business and a physical one lies in the complexity of managing transactions.
Although online businesses typically need specialized skills to handle extensive digital transactions, sales platform integrations, and inventory oversight, brick-and-mortar stores may prioritize conventional accounting activities such as counting physical inventory and processing sales receipts.
- When selecting a CPA for a small business, be wary of any warning signs that could suggest an unsuitable match for your company, such as:
- Unresponsiveness: A professional CPA provides instant and clear communication to their clients so delayed or uncertain responses from your CPA should raise questions about their professional competencies.
- Lack of experience in your field: Steer clear of CPAs unfamiliar with the specific challenges faced by your industry.
- Being too pushy: A CPA should not pressure you into making decisions. Look for someone who listens to your needs and offers tailored advice.
Unclear fee structures: A CPA who isn’t clear with their fee structure is a red flag.
Watching for these red flags can help you choose the best CPA for your business. Focus CPA is a green flag for small business needs, so you can feel confident in your decision.
