How to find the right CPA

Question

So we hired a CPA for the 1st time to do our 2022 taxes.

After they completed our taxes, we wanted to see if a cost seg would be beneficial. But to even start the conversation they wanted to charge us for the time. Is this normal?

Also, its June and they haven't reached out once to see how we are doing.

Being pretty new to this, we have plenty of questions and in need of guidance.

I guess we want to find a CPA that we can work with long term and help us create a plan.

Any recommendations? We're based in Oklahoma.

Are there any specific questions we should be asking during our first contact?

Many thanks.

Michael Plaks · Answer

@Ren Lok

Yes, this is normal if you hired your CPA for tax preparation. It's very different, both in scope and in price, from hiring a CPA for tax planning and ongoing support.

Read this post for more details: https://www.biggerpockets.com/...

Ashish Acharya · Answer

If you engage someone for just tax preparation, they will just do that. You need someone who does tax planning as well. Clarify all your access to them and fees before getting engaged.

Chris Picciurro · Answer

First of all, this is way too typical in the CPA community. What you need is tax planning and strategy. That is much more valuable then tax preparation. Your CPA firm should be a partner of yours. A person on your board of directors. Bottom line, you need a CPA firm that is aligned with your needs and can grow with you. The firm should focus on planning and adding value, not entering information into a timesheet.

Brandon Marin · Answer

Hey Ren,

This book helped me out and I would recommend it. It is by the Rich Dads series. Choose the Right Tax Advisor and Preparer • Tom Wheelwright

Kyle Parks · Answer

I can't tell you who to hire, but i can tell you who not to hire.

Steer clear of TrueBooks out of las vegas. They screwed me out of $6,500 AND i had to hire another firm. best of luck

Joseph Palmiero · Answer

I agree with a lot of what was already said.I would look for an tax professional focused on real estate investors.Then agree on what you want and the price upfront.

Julio Gonzalez · Answer

@Ren Lok I would say a lot of it is based on their training or their resources that they utilize to complete your taxes. Here are some questions that I would typically ask a CPA:- Are you experienced in working with my industry? Do you know the ins and outs of it? How long have you been working in the industry?-Do you work with any specialty tax firms to help us small business owners get access to R&D tax credits, cost segregation and other specialty tax credits?-Do you meet with us routinely to be proactive and do planning?-What real estate tax saving strategies have you utilized with other clients?

I've found that CPAs that focus on a niche area such as real estate rather than offering general services to everyone are typically much more knowledgeable about real estate tax incentives. I'd be more than happy to provide you with a couple recommendations if you need?

John Malone · Answer

@Ren Lok what was your engagement for? As Chris mentioned, you may want to look for a RE accounting firm that has a year round model vs one off prep

Rhett Tullis · Answer

our cpa was able to do our cost segregation for just a little bit over our typical tax prep as he already has most of the info.  I am told that doing it on single family properties is not generally cost effective and really needs to be done in the first year or two of purchase.  If you have a multi fam you need to do it asap.

How to find the right CPA

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