Best questions to ask when interviewing a new CPA firm?

Question

For many years, I prepared my own tax returns, but as life got busier at work, with a young family, and buying more properties, I turned to an old friend (CPA) to do our taxes.  He did a decent job, but I don't feel that we receive the guidance and strategic help that we need as we expand our flipping and rental property portfolio.

We have an interview coming up with Tom Wheelhouse's firm ProVision (Rich Dad, Poor Dad recommended)(and am looking for a couple other firms to interview) and was wondering what questions you would ask to help make a decision if a firm is the right fit for your real estate business?

Thanks for your responses!

Lee

Brandon Hall · Answer

@Lee Huffman @Brent Paul While asking if a CPA owns investment property may be a decent criteria, I wouldn't place much emphasis on it.

Think about it - how many people on BP are bad investors? What's to say that your CPA who "owns rental property" isn't losing tons of money on his investments? Simply "owning" property is a poor indicator of how well a service will be provided.

A better question to ask is "what percentage of your client base is made up of real estate investors" or "how many real estate investors do you service?"

When I tell potential clients that over 90% of my client base is made up of real estate investors that came from BP, they get excited because they know that means I'm working in the industry every single day, seeing a lot of different investing models, developing creative strategies to reduce tax liabilities, and staying current on regulations that may affect our precious tax loopholes.

Now, couple the above with a "do you own investment real estate" question and you may be on to something. Point here is: don't just assume that because someone owns investment real estate they are qualified to help you.

Brandon Hall · Answer

Account Closed depends on if you are looking to stick with a local CPA or don't mind working virtually. Local CPAs can be found via referrals from local real estate groups. Virtual CPAs can be found here on BP :)

Account Closed · Answer

I'm looking for a good CPA as well with experience in flipping. Where can I find one?

Bruce Runn · Answer

my accountant was retiring and they brought in a new (experienced) associate to work on my returns- averages 50-60  pages- and I like someone with a sense of humor so my first questions which my current accountant loved was- How much wood would a woodchuck chuck if a woodchuck could chuck wood?  Humor usually cures tension and nerves

Alexander Lang · Answer

Thanks for the super fast response @Brandon Hall! That is good information to know.

Brandon Hall · Answer

@Alexander Lang CPAs typically only need to be licensed in the state if they are providing auditing services. Most of us don't go down that route.

Alexander Lang · Answer

Hi @Brandon Hall, I am not sure if CPA's are like Realtor's and such with the respects to licensing in various states, but just curious if you are licensed/or able to practice in Minnesota? I am on the quest for a CPA that is familiar with real estate investors and and just starting out myself and trying to assemble my team. Thank you for the advice on what to ask. I will ask some of the local CPA's in the Minneapolis area the questions you provided to verify their experiences as well.

Thanks!

Alexander Lang

Lee Huffman · Answer

Thanks for the reply @Brandon Hall.  You make some excellent points.  I'm definitely adding these to my list.

Lee Huffman · Answer

Thanks @Brent Paul, that certainly makes sense.  Having a CPA that invests personally would certainly ensure he better understands the strategies we have in place.

Brent Paul · Answer

First you will need to know how many sqft you will be covering.  The prices will vary greatly depending on style and type of carpet.  You can try ballparking it via the homedepot website or some other site once you know the sqft.

Best questions to ask when interviewing a new CPA firm?

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