Top Questions to Ask Before Hiring a CPA or Bookkeeping Firm

Choosing the right CPA or bookkeeping firm can have a significant impact on your business’s financial health. To ensure you’re making the best decision, it’s important to ask the right questions during the hiring process. Here are the top questions to help you evaluate whether a CPA or bookkeeping firm is the right fit for your needs.

1. What services do you offer?
   Not all CPAs or bookkeeping firms offer the same services. Some may specialize in tax preparation, while others focus on financial planning or auditing. Bookkeeping firms typically handle day-to-day transaction recording, while CPAs often provide higher-level financial advice and strategy. Make sure the services align with your specific business needs.
2. Do you have experience in my industry?
   A CPA or bookkeeper with industry-specific experience can save you time and provide valuable insights. For example, a firm with retail experience may understand inventory management, while one familiar with real estate can handle depreciation schedules and capital improvements.
3. How do you charge for your services?
   Clarify whether the firm charges hourly, offers a flat rate, or has a tiered pricing structure based on services. This ensures you’re prepared for the costs and can budget accordingly. Ask if there are additional fees for things like consultations or software subscriptions.
4. What accounting software do you use or recommend?
   Tech-savvy firms can simplify processes by using cloud-based software like QuickBooks or Xero. If you already have a preferred system, ask if they are proficient in it or can integrate with your existing tools.
5. How do you handle communication?
   Find out how often they provide updates and whether they prefer email, phone calls, or in-person meetings. Ask how quickly they respond to inquiries and if there’s a dedicated point of contact for your account.
6. What is your process for ensuring accuracy?
   Understanding their approach to quality control, including checks and balances, reconciliation processes, and error resolution, can give you confidence in their work.
7. How will you help me stay tax compliant?
   A proactive CPA or bookkeeping firm will not only help you file your taxes but also ensure compliance with the latest tax laws. Ask about their strategies for minimizing tax liability and avoiding penalties.
8. Do you offer advisory or strategic planning services?
   Beyond basic bookkeeping or accounting, some firms offer financial planning, forecasting, or business strategy support. Determine if these value-added services align with your long-term goals.
9. Can you provide references or client testimonials?
   Reputable firms should be able to share testimonials or put you in touch with other clients who can speak to their expertise and reliability.
10. What happens if I get audited?
    If an audit occurs, you’ll want to know if the firm will support you through the process. Ask about their experience with audits and how they’ll assist in preparing necessary documentation.

Asking these questions can help you make an informed decision and find a CPA or bookkeeping firm that aligns with your business’s needs. At Bandicoot, we pride ourselves on offering tailored solutions for businesses of all sizes. Contact us today to learn how we can help you manage your finances and achieve your goals.

Beyond the Numbers: Why Industry Experience Matters When Hiring a CPA

When choosing a Certified Public Accountant (CPA) for your business, their technical skills and certifications are just the beginning. Industry experience is a critical factor that can make or break the relationship. A CPA who understands the unique challenges and nuances of your industry can provide insights and strategies that go far beyond basic number-crunching. Here’s why industry experience matters and how it can benefit your business.

Tailored Financial Advice
A CPA with industry-specific experience knows what financial metrics matter most to your business. They can provide tailored advice to help you stay competitive, reduce costs, and maximize profitability. For example, a CPA working with a restaurant understands the importance of food cost ratios and labor efficiency, while one experienced with e-commerce businesses can advise on inventory turnover and online sales tax compliance.

Regulatory Expertise
Each industry has its own set of regulations, tax codes, and compliance requirements. An experienced CPA is familiar with these rules and ensures your business stays compliant. For instance:

• A real estate CPA knows how to navigate depreciation, 1031 exchanges, and capital improvements.
• A healthcare-focused CPA understands Medicare reimbursements and medical equipment deductions.

This expertise reduces the risk of costly errors and penalties.

Strategic Insights for Growth
A CPA with a deep understanding of your industry can identify growth opportunities and risks. They’ve likely worked with businesses similar to yours and can offer proven strategies to expand operations, improve cash flow, or optimize pricing models.

Efficient Problem Solving
With experience comes efficiency. An industry-specific CPA has likely encountered the same challenges you’re facing and can resolve them quickly. Whether it’s an unexpected tax issue or a financial discrepancy, their knowledge can save you time and stress.

Benchmarking and Competitive Analysis
A CPA with industry experience has access to data and insights from similar businesses. They can help you benchmark your performance, compare costs, and identify areas where you can improve to stay ahead of competitors.

Better Communication and Understanding
Industry experience means your CPA speaks your language. They understand your business processes and terminology, making it easier to communicate your needs. This alignment ensures smoother collaboration and better results.

Final Thoughts
Hiring a CPA with industry experience isn’t just a nice-to-have—it’s a necessity for businesses looking to thrive in competitive markets. At Bandicoot, our CPAs specialize in a variety of industries, ensuring that we provide the insights and expertise your business needs. Contact us today to learn how we can help you go beyond the numbers and achieve your financial goals.