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30 Questions to Ask Before Hiring an Accounting Firm
Choosing the right accounting firm can feel overwhelming, especially for startups and small businesses. But asking the right questions up front is the best way to find a true partner who understands your needs. In this guide, we’ve compiled 30 important questions to ask any prospective accounting firm. Armed with these questions, you’ll feel more confident vetting firms and finding one that’s a great fit for your business.
Experience and Expertise
When interviewing an accounting firm, start by understanding their background and experience. You want a firm that has worked with companies similar to yours and has the right qualifications.
What industries or sectors do you specialize in? Different industries have unique rules and challenges (for example, tech startups may have stock options to manage, and restaurants have specific tax deductions). If a firm has deep experience in your industry, they’ll hit the ground running and help you avoid common pitfalls.
How long have you been in business, and what size businesses do you typically work with? You want a firm that understands the scale of your operation. A firm that’s mostly worked with large corporations might not be nimble enough for a startup, while one that only serves tiny businesses might not grow with you. Knowing their track record helps set expectations.
Do you have experience working with startups or small businesses like ours? Startups often have fast-changing needs and tighter budgets. An accountant familiar with startups will know how to prioritize tasks and possibly advise on funding, scaling, and tax breaks that are common for small companies.
Who will actually handle our account, and what are their qualifications? Some firms assign a junior accountant or outsource tasks overseas. Ask about who does the day-to-day work and what credentials they have. It’s reassuring to know you’re working with experienced CPAs or bookkeepers, not just interns.
Can you provide references or success stories from similar clients? Hearing from other clients who were in your shoes can give you confidence. References or case studies show how the firm solved problems for others in your industry, and whether their clients stayed happy long-term.
Services and Specialties
Every business has different financial needs, so make sure the firm offers exactly what you require. Ask about specific capabilities to avoid surprises later.
What accounting services do you offer (e.g. bookkeeping, tax preparation, payroll, financial reporting)? Some firms do full-service accounting, while others focus on tax or bookkeeping only. You may need payroll management or investor reporting, so confirm they cover everything on your wishlist.
Do you handle tax planning and filing? Tax rules can be complex, and a savvy accountant will help you save money and stay compliant. Ask if they prepare your annual taxes and if they can advise on strategies throughout the year so you’re not scrambling when April comes.
Do you offer business advisory or CFO-level services? As you grow, you might want guidance on budgeting, cash flow forecasts, or strategic decisions. Some firms provide advisory services in addition to basic bookkeeping. This could be invaluable if you need insights without hiring a full-time CFO.
Will you manage payroll or other HR-related financial tasks? Payroll can be a headache, and mistakes are costly. If you plan to outsource payroll to your accounting firm, make sure they handle it accurately and on time. Also ask if they can manage things like contractor payments, W-2 filings, or benefits accounting.
How do you handle year-end reporting and audit support? Whether or not you expect an audit, having someone who knows how to close the books at year-end is essential. Ask if they prepare annual financial statements or can liaise with an auditor. This ensures you’re ready for compliance reviews or bank requests.
Pricing and Contracts
You don’t want hidden fees to catch you off guard. Clear pricing and flexible terms are key, especially for startups watching every dollar.
What is your pricing model (hourly rate, fixed fee, or monthly retainer)? Some accountants charge by the hour, others offer packages or a flat monthly fee. Know how you’ll be billed so you can budget accurately. A predictable retainer can be nice, but it may not include everything, so ask the next question too.
What exactly is included in your fee, and what would cost extra? Clarify what services are covered and what counts as add-ons. For example, some firms include basic bookkeeping in a package but charge extra for year-end taxes or special projects. Understanding the scope prevents billing surprises.
Are there any additional or hidden charges we should know about? Ask about fees for things like setting up new accounts, printing, online access, or consultations. Some firms charge travel or rush fees for urgent work. It’s best to spell this out so nothing sneaks up on you.
How often will we be billed and what are the payment terms? Will you pay monthly, quarterly, or after each project? Know when payments are due and if you get an invoice with a certain notice period. Also ask if they impose late fees or other penalties for slow payment.
Is there a minimum contract term or cancellation policy? Check if you’re locked in for a year or if it’s month-to-month. Especially for a startup, you might want flexibility. Understand the notice required if you need to switch firms, or if there’s a fee to end the agreement early.
Technology and Tools
Today’s accounting world is increasingly digital. The right tech stack can make your financial processes smoother and more secure.
Which accounting software do you use, and can you work with ours? Common tools include QuickBooks, Xero, or specialized software. If you’ve already picked a system, ensure they’re comfortable using it. If not, ask what software they prefer and why – sometimes they’ll handle the setup for you.
Do you use cloud-based solutions for bookkeeping and collaboration? Cloud software means your books are updated in real time and accessible anywhere. It also lets you and your accountant work on the same data simultaneously. If a firm still does everything on paper or outdated programs, you might miss out on efficiency and up-to-the-minute insights.
How do you ensure our financial data is secure and backed up? Security is vital. Ask about encryption, secure file transfers, and backup procedures. You want peace of mind that your numbers are safe from hackers or data loss. A tech-savvy firm should have solid measures in place to protect your information.
Do you offer an online portal or dashboard for clients? Many firms provide a client portal where you can upload documents, view reports, and track tasks. This can save time and reduce emails. If instant access to your financial info is important, look for a firm with a user-friendly platform.
How do you stay current with new accounting technologies and updates? Technology evolves fast. A good firm will invest in training and tools so they can work efficiently. Ask if they attend industry conferences or have partnerships with software providers. This shows they’re not stuck in the past and can adapt to tools that benefit you.
Communication and Support
Transparency and responsiveness are crucial. You’ll want to work with a firm that keeps you informed and is easy to reach.
How will we communicate, and how quickly can you respond? Different firms prefer different methods – some lean on email, others like calls or video chats. Let them know your preference. Also ask about typical response times. You want a sense of how promptly your questions will be answered.
How often will we receive updates or financial reports? Will you get a monthly P&L statement, a quarterly review, or something else? Regular reporting helps you track progress and catch issues early. Agree on a schedule (monthly is common for small businesses) so you’re never left wondering about your financial health.
Who will be our main point of contact? Is it a senior partner, a junior accountant, or a client manager? Sometimes you email a general address and get a quick reply from a staffer. Make sure you know who to turn to for questions. Having direct access to a consistent contact builds trust.
How do you handle urgent issues or deadlines? Ask about their process for rush work. For example, if a tax deadline is looming or you spot a big error, how quickly can they jump in? It’s reassuring to know they have a system for fast turnaround if unexpected problems arise.
Will you proactively advise us on financial matters, or should we reach out to you when we have questions? Experienced accountants often flag issues or opportunities before you notice them. Others may focus on what you’re asking and respond when prompted. Clarifying this up front will help you understand if the firm will guide your business proactively or if you will need to prompt them with questions.
Fit and Reputation
Finally, assess whether the firm is a good cultural fit and trustworthy partner. You’ll be working closely with them, so compatibility matters.
What makes your firm a good fit for a small business or startup like ours? Every firm is different. Some pride themselves on working with scrappy startups, others on serving established firms. Look for signals that they value small clients, such as flexible processes or a startup-friendly attitude.
How do you tailor your service to each client’s goals and values? A cookie-cutter approach can fall short. Ask how they get to know your business personally. Ideally, the firm will ask about your vision and customize their advice, rather than just going through a generic checklist.
What is your company’s culture or mission, and why does it matter to clients? This might seem out of left field, but shared values can lead to better working relationships. If they have a mission statement (like “we empower small businesses”), it can hint at their priorities and how they’ll treat you as a client.
Can you share a success story of helping a client grow or overcome a challenge? Hearing a specific example can be illuminating. It tells you how they handle real-world scenarios, be it helping a startup navigate funding rounds or managing a sudden audit. Success stories give you confidence they can handle your situation too.
How do you measure client satisfaction or success? A firm that tracks client feedback and outcomes shows they care. Ask if they have metrics (like client retention rates or survey results) or simply how they know their clients are happy. This demonstrates their commitment to your success.
Choosing the right accounting firm is a big decision, but these questions will help you gather all the information you need. Take notes during interviews and compare answers to see who truly understands and aligns with your business.
If all of this sounds like a lot, remember that there are tools out there to simplify the process. For example, consider checking out Zenithlo – they offer transparent pricing and a 30-day free trial so you can try an accounting solution with no commitment.
Best of luck finding the perfect accounting partner for your business. Asking these questions is the first step toward a smooth, transparent relationship that helps your company thrive!