What should you prepare before contacting an accountant?

Write a short brief describing your business and the problem you want solved. Start with what you sell, where you operate and how customers pay. Add the work that currently waits until the weekend.

Hypothetical example: imagine a small design studio whose owner keeps asking whether another contractor is affordable. Put that question in the brief. Ask candidates what information they would need to answer it and how often they would update the answer.

• List your sales channels, bank accounts and payment services.
• Describe employee, contractor and stock records where relevant.
• Name your existing accounting software without making it a selection requirement yet.
• Identify missing documents and unfinished accounting periods.
• Choose the decisions you want monthly reports to support.

Prepare a redacted sample of one completed month. Ask the candidate what is missing before granting access to live accounts. For your account inventory, use the questions in the business bank account guide.

Should you hire a CPA, a bookkeeper or an online service?

Match the service to the work. A bookkeeper handles basic daily financial records; CPA stands for Certified Public Accountant. The SBA presents bookkeepers, CPAs and online services as options, noting that CPAs generally offer more tailored support at a higher cost than online services. SBA accounting guidance.

Treat these as service categories, not a universal licensing checklist. The cited guidance is American. If you operate elsewhere, ask candidates to identify the local qualifications and permissions relevant to your work.

When comparing an accountant vs online accounting service, ask who actually answers questions. Request a demonstration using a fictional missing invoice or unexplained payment. Agree on who investigates it and how you receive the answer.

What financial tasks should the service cover?

Give each task an owner and a visible result. The SBA identifies customer receivables, supplier payables, available cash, bank reconciliation and payroll as functions someone should manage. SBA financial task checklist.

Receivables means money customers owe you; payables means money you owe others. Bank reconciliation means checking bank activity against accounting records. Use plain descriptions like these in your service agreement.

• Customer balances: request a list of unpaid invoices and agreed payment dates.
• Supplier balances: request upcoming bills and unresolved differences.
• Cash review: agree which accounts and dates the report covers.
• Bank checks: ask for unexplained differences to be listed for review.
• Payroll: name the person preparing, reviewing and authorizing payments.

Ask for a report you can discuss

Request a sample monthly pack and have the candidate explain it without assuming accounting knowledge. Bring one question from the financial statements guide. Ask which report would answer it.

Hypothetical example: an online shop receives a customer return after paying delivery costs. Ask the candidate to walk through the sale, refund and delivery expense using fictional records. Judge whether you can follow the explanation.

Which questions should you ask an accountant?

Use the same interview questions for every candidate. Ask owners of comparable businesses for introductions, then assess each person yourself. Record specific answers rather than a general impression of confidence.

1. What experience do you have with businesses like mine?
2. Which documents do you need before starting?
3. What will I receive each month, and when?
4. Who does the work and who checks it?
5. How do you handle missing information or corrections?
6. Who answers questions when my usual contact is unavailable?
7. How will my records be returned if we stop working together?

For US taxpayers, the IRS recommends checking a preparer's credentials and history, discussing fees upfront and confirming availability throughout the year. IRS selection advice.

Test the explanation, not the sales pitch

Ask the candidate to explain one unfamiliar line in a sample report. Then ask what you should do about it. Prefer an answer that connects the figure to a document and an action.

Request fictional or anonymized examples. Do not ask to see another client's private records. For references, ask about delivery, communication and how problems were handled rather than seeking confidential financial results.

How can you compare accounting fees fairly?

Send every candidate the same scope and ask for a written proposal. Separate the ongoing service from work needed to fix older records. Ask what would trigger an additional charge.

The IRS explicitly advises asking about fees upfront. IRS fee guidance. Build your comparison around the following requested details:

• Included tasks, reports and meetings.
• Any limits on transactions, accounts or staff covered.
• Software charges and setup work.
• Pricing for corrections, extra advice and tax correspondence.
• Approval requirements before additional work begins.
• Notice periods and the process for transferring records.

Hypothetical comparison: one proposal includes record entry only; another includes record entry and a monthly review. Ask both providers to quote for the same package before comparing the totals.

Use the small business cost review guide to decide which services you actually need. Remove an optional meeting only after deciding who will handle the questions it was meant to answer.

Who stays responsible for taxes and business structure decisions?

Keep a review step before any return is approved. The IRS states that US taxpayers remain responsible for information on their income tax returns regardless of who prepares them. It also advises reviewing the business return before signing. IRS responsibility guidance.

For another country, ask a local practitioner to explain the applicable responsibilities. Do not treat an American rule as the answer for every business. Request a written explanation of what you approve and what the provider submits.

Can the adviser help choose a business structure?

Yes. The IRS says tax professionals can often advise small businesses on business structure. IRS description of tax advisory services. Ask for a comparison based on your ownership plans and activities, with any legal questions identified separately.

Before approval, request the final documents, explanations of unfamiliar figures and copies for your own records. Use the tax audit preparation guide to organize questions about supporting paperwork.

What should happen during the first month?

Agree on a first-month plan before the work starts. Include the document handover, unresolved questions, access permissions and the first reporting date. Put a name beside every action.

1. Confirm the last completed accounting period.
2. List missing records and assign someone to obtain them.
3. Provide access appropriate to the agreed tasks.
4. Set dates for questions, document delivery and review.
5. Check the first report together and record required corrections.

Keep payment authorization separate from payment preparation where practical. Ask for individual user access rather than sharing one login. Agree on how access will be removed when the engagement ends.

Use the delegation guide to clarify what stays with you. Then bring one practical question from the cash flow guide to your first review.