How to Find a good CPA

[Anthony Beasley]

Hello everyone I am a new investor, and I was wondering if any of you guys knew any good CPA and lawyers in the Cincinnati area? And what might be some good interview questions to ask them? I have ah couple pick out but still brainstorming.

[Michael Plaks]

Originally posted by @Grigory Pekarsky:

A good CPA can make a world of difference to your finances, help you avoid unnecessary taxes and ensure that your numbers are correct on both business and personal accounts. But finding the right CPA can be difficult. Before you research accountants in Cincinnati, make a list of questions that need to be answered:

1. What kind of experience do they have?

2. Do they maintain any professional licenses or designations? Licenses and designations show their advanced education and understanding of the profession (and sometimes licensing requirements).

3. Where is their office located? Do you have to travel far from home or work?

4. Why should you hire them instead of using an accountant from the internet ? 

5. Do they offer any other benefits, like phone consultations or online document upload?

6. What is their hourly rate? Hourly rates vary widely across the profession, so it's important to research before you hire one for tax preparation services , especially if you're looking for an accountant in Cincinnati. 

7. How many clients do they service per year? If they service too many (over 50), it may be hard for your business taxes to get the attention they need. Don't be afraid to ask what percentage of clients are repeat customers versus first-time customers; this will tell you how much other people like them!

I guess I'll join my colleagues and friends in questioning the usefulness of your list. By the way, for what I think is a much more useful set of questions, scroll up and see the two older BP threads that I linked earlier.

1. Experience. Being in real estate, we all know how easy it is to talk the talk. If only we could trust the answers to this question...

2. Designations. Minimal significance. My firm tried to hire one more licensed CPA a year ago. Interviewed about 20 CPAs with anywhere from 1 to 30 years of experience. Could not find anybody sufficiently competent to work with our REI clients without extensive (re)training. (This covers your question #1, too.)

3. Office. My firm has a physical office in Houston. We have not had a face-to-face client meeting since pre-Covid, and hardly any before. These days, everything is done with technology: portals, eSignatures, video conferences etc. Our clients are nationwide, which is the case with all of my colleagues on this forum.

4. Internet. Well, everything is on the Internet anyway. If we rephrase this question as "what sets you apart from your peers?" - then there's some value in the answer.

5. Benefits. Phone consultations are not a benefit but a paid service. It's either hourly fee or built into the price of the core services. Online document upload is universal these days. If it's not there, then you're dealing with a business that is seriously behind the times.

6. Hourly rate. Totally useless metric, except for consultations. If I charge $500/hr and complete the job in 1 hour, then my $500 is cheaper than the $100/hr competitor who takes the entire day and charges you $800. Also, many established firms, like mine, are not working on an hourly rate at all.

7. Number of clients. Already dispelled by others. A much better question would be "How many clients in my situation are you working with, and how were you able to help them?" Of course, circling back to #1, remember that talk is cheap. I once beat up Floyd Mayweather when he ran his mouth. <sarcasm off>