A good accountant saves you money, time and stress. A poor one can cost you all three. The trouble is that “accountant” covers a huge range of people, from a part-time bookkeeper to a partner at a large firm, and most people only go looking when a deadline is already close.
This guide walks you through the process in order, so you end up with someone who is qualified, a good fit for your situation, and priced sensibly.
Step 1: Work out what you actually need
Start with the job, not the job title. Write down, in a sentence or two, what you want help with. For example:
- “File my personal tax return. I have a salary plus some freelance income.”
- “Keep the books for my small business every month and handle payroll for three staff.”
- “I’ve received a letter from the tax authority and need someone to deal with it.”
- “I’m starting a company and want advice on structure before I register.”
That sentence tells you what kind of professional to look for. Routine bookkeeping does not need a senior tax adviser, and a tax dispute should not go to a bookkeeper. Our guide to CPAs, accountants, bookkeepers and enrolled agents explains the differences in detail.
Step 2: Match the credential to the job
In many countries anyone can call themselves an “accountant”, so the credential matters more than the title.
- In the United States: a Certified Public Accountant (CPA) is licensed by a state board of accountancy. An Enrolled Agent (EA) is licensed by the IRS and specializes in tax. Both can represent you before the IRS on any tax matter.
- In the United Kingdom: look for membership of a recognized body such as ICAEW, ACCA, ICAS, CIMA or AAT, or CIOT / ATT for specialist tax advice.
- In Canada, Australia and New Zealand: CPA Canada, CPA Australia and Chartered Accountants ANZ are the main professional bodies.
A credential is a floor, not a guarantee of quality, but it does mean the person has passed exams, has to keep their knowledge up to date, and answers to a regulator if something goes wrong.
Step 3: Build a shortlist
Aim for three candidates. Good places to look:
- A directory that shows specialisms and credentials. On My Accounting Hub you can search by specialism and location and see each professional’s regulatory body before you get in touch.
- Recommendations from people in a similar position. A fellow freelancer, a business owner in your industry, or a landlord with a similar portfolio is more useful than a general “does anyone know an accountant?”
- Your other advisers. Lawyers, financial planners and bankers often know which accountants are responsive and reliable.
Specialism matters. An accountant who works mostly with restaurants will know the details that trip restaurants up. The same goes for e-commerce sellers, contractors, landlords, medical practices and expats.
Step 4: Check them out before you call
A few minutes of checking saves a lot of trouble later:
- Verify the credential. US state boards publish CPA license lookups, and the IRS has a directory of preparers with credentials. UK bodies such as ICAEW and ACCA have public member directories.
- Read reviews, but read them properly. Look for comments about responsiveness and accuracy, not just friendliness.
- Look at their website or profile. Does it say who they work with? A clear focus is usually a good sign.
Step 5: Have a short intro call with each
Most accountants will do a free 15 to 30 minute introductory call. Use it to judge fit and to get a clear idea of cost. Our list of questions to ask an accountant before hiring them covers what to bring up, but the essentials are:
- Do you regularly work with clients like me?
- Who will actually do the work, and who do I contact with questions?
- How do you charge, and what is and isn’t included?
- How quickly do you usually reply to emails?
Step 6: Compare fees fairly
Ask each candidate for a written quote for the same scope of work. Fixed fees are easier to compare than hourly rates. The cheapest quote is not always the best value. An accountant who spots a missed deduction or keeps you out of a penalty can easily cover the difference. See how much an accountant costs for typical fee structures.
Step 7: Get it in writing
Before any work starts, you should receive an engagement letter. It sets out what the accountant will do, what you need to provide, deadlines and fees. If a professional won’t put the scope in writing, keep looking.
Warning signs to avoid
- Promising a bigger refund than anyone else before seeing your paperwork.
- Charging a fee based on the size of your refund.
- Refusing to sign the return they prepared.
- Asking for your refund to be paid into their account.
The IRS specifically warns taxpayers about these practices, and they are red flags in any country. We cover more in signs of a bad accountant.
The short version
- Write down what you need help with.
- Choose the right credential for that job.
- Shortlist three people with the right specialism.
- Verify credentials and read reviews.
- Have a short call with each and ask the same questions.
- Compare written quotes for the same scope.
- Sign an engagement letter before work starts.
Ready to start? Search the directory by specialism and location. It’s free, there’s no account to create, and you contact professionals directly.
This guide is general information, not tax, legal or financial advice. Rules and thresholds change and depend on where you live - speak to a qualified professional about your own situation.