How to Find a Good CPA in 2025: Tips, and What to Ask [GUIDE]

Finding a good CPA isn't just about tax season, it's about peace of mind, year-round strategy, and having a trusted partner who knows your numbers better than you do.

Whether you're a solo founder, a small business owner, or someone managing complex finances, the stakes are high. One wrong hire can mean missed deductions, IRS trouble, or poor financial planning that costs you thousands down the road.

But here's the challenge: anyone can call themselves a "tax pro."

So, how do you cut through the noise and actually find a good CPA who gets your business, communicates clearly, and delivers results?

This guide breaks down exactly how to find a good CPA, from what credentials to look for, to red flags to avoid, to where to search (and how much you should expect to pay). Whether you're filing your first business return or ready to level up your financial game, this is the CPA playbook you've been waiting for.

Let's dive in.

What Makes a Truly Good CPA? (Not Just One With a License)

Let's cut through the noise. Anyone can pass the uniform CPA exam and call themselves a CPA, but not everyone can protect your money, help you scale, or keep you off the IRS radar.

Here's what separates an average CPA from someone worth paying top dollar for:

1. They Think Like an Operator, Not Just a Technician

A real CPA isn't just checking boxes on tax forms. They:

• Understand business models and margin levers
• Spot inefficiencies before they become cash-flow killers
• Help you structure decisions, not just report outcomes

If your CPA isn't asking how you make money, or how your burn rate looks, they're not thinking deeply enough about your unique financial situation.

2. They've Navigated High-Stakes Scenarios Before

Great CPAs don't just file clean returns, they know how to:

• Fix messy books after years of neglect
• Handle IRS audits and notices without panicking
• Advise during M&A, funding rounds, or major tax events (like a sudden windfall or exit)

Ask them: "Tell me about the toughest client situation you've handled. What went wrong, and how'd you fix it?"

3. They're Ruthlessly Honest, Even If It Costs Them

A good CPA won't just nod and take your word for it. They'll push back when needed:

• "That deduction won't hold up in an audit."
• "You're paying too much on payroll taxes, here's why."
• "This strategy sounds good but exposes you to X risk."

If they say yes to everything, they're either inexperienced or scared to lose your business.

4. They Help You Think in Tax Years, Not Just File in Them

A solid CPA builds tax strategy, not just compliance. That includes:

• Advising on entity structure (S Corp vs C Corp vs LLC)
• Flagging tax changes and how they affect your quarterly planning
• Helping you shift income, accelerate deductions, and optimize compensation

If your CPA isn't proactive between January and October, you're missing most of the value.

5. They Don't Waste Your Time With Busywork

A strong CPA respects your time. They:

• Use secure, intuitive client portals (no email ping-pong)
• Provide templates/checklists for onboarding
• Automate quarterly reminders and estimated tax tracking

If you're chasing them for basic info, or emailing Excel files back and forth… it's 2025, not 2009.

Want the real test?

Call 3 CPAs. Ask them how they'd structure your taxes over the next 3 years. The average one talks in forms. The great one talks tradeoffs.

How to Find a Good CPA (Without Wasting Time or Overpaying)

When you're looking for a new CPA, you're not just hiring someone to do your taxes, you're choosing a financial partner. Whether you're self-employed, managing rental properties, or running a business, the right CPA can save you thousands and help you make smarter money moves year-round. But how do you find one who's actually good, not just certified?

Here's how to do it the right way.

Start with Verified, Trusted Sources, Not Just Google Ads

Don't fall for the first listing that shows up on Google. Instead, head to your state's Board of Accountancy or the AICPA directory to verify licensed CPAs in your area. These platforms let you check credentials and select qualifications, licensing status, and even disciplinary history.

Many directories allow you to filter by location and help you filter results based on your specific business needs. If you want someone who truly understands your specific tax situation, whether it's startups, real estate, or international taxes, look for CPA firms that specialize in your niche.

For example, if you're an early-stage founder, Madras Accountancy, which supports U.S.-based startups with outsourced CPA services, might offer far more relevant help than a generalist.

Don't Just Ask "Do You Do Taxes?", Ask the Right Questions

Too many people stop at "Do you handle simple form 1040 returns?" or "What's your rate?" A better approach is to treat this like a vetting interview when choosing a tax professional. Ask:

"What kind of clients do you typically work with?" Their answer will tell you if they're used to handling cases like yours or if you'll be the exception.

"Can you walk me through how you'd help someone in my situation save money?" You're not just looking for form fillers, you want strategic thinkers who can optimize your finances.

"How do you prefer to communicate, and how often?" If their style is "Email me once a year," and you need hands-on help, it's a mismatch.

Know What to Expect, and What to Avoid

A qualified CPA will be upfront about how they price their services, whether they charge flat fees, hourly rates, or monthly retainers. They'll explain what's included (like tax preparation, estimated tax planning, or audit support) and what will cost extra.

Red flags to watch for:

• Vague pricing like "It depends" with no ballpark estimate
• Charging extra for every phone call or question
• Overpromising massive refunds without knowing your situation

Transparency is a signal of trustworthiness. So is a clear scope of work.

Match the CPA's Expertise to Your Financial Needs

Not every taxpayer needs a top-tier CPA. If you're a W-2 employee with a simple return, a tax preparer or Enrolled Agent might be more cost-effective. But if you're self-employed, own a small business, or have complex deductions, a CPA is almost always worth the investment.

Consider your area of expertise needs:

• Individual tax returns with standard deductions
• Business tax filing for multiple entity types
• Federal and state tax compliance
• Types of tax situations requiring specialized knowledge

For instance, if you're running an LLC taxed as an S corp, dealing with quarterly filings, or navigating multi-state income, you'll need a CPA who understands your entity type and filing requirements inside and out.

Test Their Thinking, Not Just Their Credentials

Here's a great litmus test: ask, "If my income doubled next year, how would you help me reduce my tax burden?"

If their answer stops at "You'll be in a higher tax bracket," move on. A high-quality CPA will talk about restructuring your entity, optimizing retirement contributions, setting up a solo 401(k), or managing deductions in a way that prepares you for growth, not just survival.

Understanding Your Options: When to Choose a CPA

Finding a CPA Near You vs. Remote Services

When searching for a "CPA near me," consider whether you actually need a local CPA. In today's digital world, many excellent CPAs work remotely and can handle your tax return preparation just as effectively as someone based on location.

Benefits of a local CPA:

• Face-to-face meetings during filing season
• Knowledge of local state tax requirements
• Personal referral networks in your community

Benefits of remote CPAs:

• Access to specialists regardless of location
• Often more competitive pricing
• Flexibility in scheduling and communication

Getting Referrals from Trusted Sources

A referral from someone you trust is often the best way to find a great CPA. Ask:

• Business partners or colleagues in similar industries
• Your attorney or financial advisor
• Your local CPA society for member directories
• Professional networks and industry associations

When following up on a referral, make sure to understand what made that person recommend this particular CPA and whether their needs align with yours.

Working with Different Types of Tax Professionals

Understanding the difference between various tax professionals helps you choose the right fit:

CPAs: Licensed professionals who can handle complex tax situations and represent you before the IRS

Enrolled Agents: Tax specialists certified by the IRS, often through the annual filing season program

Tax Attorneys: Legal professionals specializing in tax law and complex disputes

Federal tax return preparers with credentials: Various levels of certification and expertise

Questions to Ask When Interviewing CPAs

When you're looking to choose a CPA, ask these key questions:

1. What's your area of expertise? Make sure they align with your needs
2. How do you stay current with tax code changes? The tax landscape evolves constantly
3. Can you help with tax planning beyond just filing? You want strategic guidance
4. What's your availability during and outside of filing season? Year-round support is valuable
5. How do you handle IRS communications? Know your CPA will be there if issues arise

How Much Does a Good CPA Cost?

Hiring a CPA isn't just about filing your taxes, it's about gaining peace of mind, expert guidance, and potentially saving money in the long run. But how much does a good CPA actually cost?

The short answer: It depends. Your fee will vary based on the complexity of your finances, where you live, and the services you need.

Typical CPA Costs in 2025

For Individuals:

• Basic income tax return (Form 1040 with standard deduction): $200–$350
• Itemized return (Form 1040 + Schedule A): $300–$600
• Self-employed/freelancer (Form 1040 + Schedule C): $400–$800
• Returns with investments or rental income (Schedule D or E): +$100–$200 per schedule
• Returns claiming earned income tax credit or other complex credits: additional fees may apply

For Businesses:

• LLCs or S Corps: $800–$2,000+
• C Corporations or complex entities: $1,500–$3,000+
• Full-service tax and advisory packages: $1,500–$5,000 annually, depending on needs

What Affects CPA Pricing?

Complexity of your return: The more forms and schedules you need, the higher the cost. Multi-state income, rental properties, or crypto transactions all add complexity.

Your location: CPAs in high-cost cities (e.g., New York or San Francisco) typically charge more than those in smaller towns.

CPA experience and firm size: A solo CPA may charge less than a boutique firm or a large advisory practice.

Record organization: Clean, digital records save your CPA time, and you money. If your finances are disorganized, expect a surcharge.

Is It Worth It?

If your taxes involve anything beyond a basic W-2 job, a CPA can be a smart investment. They'll help you stay compliant, avoid penalties, and potentially uncover savings you might miss on your own.

Many individuals and small businesses find that a good CPA pays for themselves, especially when it comes to planning, audits, or managing multiple income streams.

CPA vs. Tax Preparer vs. Enrolled Agent

Choosing the right tax professional isn't just about price; it's about aligning the complexity of your financial situation with the right level of expertise. Whether you're a salaried employee with a simple W-2 or a small business owner juggling 1099s, deductions, and quarterly payments, knowing the difference between a CPA, tax preparer, and enrolled agent can save you from costly mistakes and IRS issues.

1. Certified Public Accountant (CPA)

A CPA is the highest standard of tax and financial expertise in the U.S. These are licensed professionals who have passed the rigorous Uniform CPA Examination and met extensive education and experience requirements in their state. Many also pursue ongoing training and certifications.

What CPAs do:

• Prepare and file individual and business tax returns
• Offer tax planning and advisory (not just filing)
• Handle complex financial situations like multi-state income, investments, trusts, or business structures
• Represent clients before the IRS in audits, appeals, and collections
• Prepare audited, reviewed, or compiled financial statements for businesses

Best for:

• Business owners (LLCs, S corps, C corps)
• High-income individuals or investors
• Anyone needing strategic, year-round guidance beyond April 15

Key advantage: CPAs are the only tax professionals (along with attorneys and EAs) who have unlimited rights to represent clients before the IRS.

2. Enrolled Agent (EA)

An Enrolled Agent is a tax expert certified by the IRS, not by a state board. To earn the EA title, a person must either: a) Pass a comprehensive 3-part IRS exam covering individual and business tax law, or b) Have relevant experience working at the IRS.

What EAs do:

• Prepare and file tax returns
• Represent clients before the IRS (unlimited rights)
• Specialize in tax law, audits, collections, and appeals
• Often work with freelancers, self-employed individuals, and small business owners

Best for:

• Self-employed professionals or gig workers
• People facing IRS disputes or audits
• Individuals with complex tax returns but no need for broader financial planning

Key advantage: EAs often charge less than CPAs, yet still bring strong IRS-focused expertise, especially useful for compliance, back taxes, or audit support.

3. Tax Preparer (Unlicensed or Registered)

This is the broadest and most varied category. "Return preparer" can refer to:

• Unlicensed individuals at retail tax chains (e.g., H&R Block)
• Part-time seasonal preparers
• Bookkeepers or financial advisors who also prepare taxes
• Volunteers or assistants under the IRS's VITA program

Some tax preparers are registered with the IRS via a PTIN (Preparer Tax Identification Number), but that doesn't mean they're licensed or certified to represent you before the IRS.

What tax preparers do:

• Help with simple tax return filing (Form 1040, W-2s, basic deductions)
• May offer software-based assistance (like TurboTax Free Edition)
• Generally handle one-off or straightforward filing tasks

Best for:

• Employees with a single W-2
• People who qualify for the standard deduction
• Anyone with a very simple return looking for an affordable solution

Key limitation: Most tax preparers can't represent you before the IRS unless they're also a CPA, EA, or attorney.

Making the Right Choice for Your Situation

When You Might Need to Find a New CPA

Sometimes your current CPA no longer meets your needs. Consider looking for a new CPA if:

• Your business has grown beyond their expertise
• They're not responsive during critical times
• You're not getting proactive tax planning advice
• Their fees no longer align with the value provided
• They don't understand your industry or business model

Working with a CPA: What to Expect

When working with a CPA, you should expect:

Proactive Communication: Your CPA should reach out about tax planning opportunities and deadline reminders.

Strategic Advice: Beyond just getting your taxes done, they should help you plan for future tax situations.

Availability: While CPAs are busiest during filing season, a good one will be accessible year-round for questions and planning.

Transparency: Clear communication about fees, processes, and what services are included.

Alternative Solutions

For some situations, you might consider alternatives to traditional CPA services:

• Software solutions like TurboTax Free Edition for very simple returns
• Online CPA services that combine technology with professional expertise
• Tax attorneys for complex legal situations
• Outsourced accounting firms like Madras Accountancy for ongoing business support

The key is finding a solution that will meet your needs both now and as your financial situation evolves.

Giving Your CPA Time to Focus

Remember that a great CPA needs time to focus on strategic planning and analysis. The more organized and prepared you are with your financial records, the more time they can spend on value-added services rather than data collection and cleanup.

Final Thoughts: Finding the Right CPA Isn't Just About Taxes, It's About Trust

Choosing the right CPA isn't just a once-a-year decision. It's about finding someone who understands your financial landscape and helps you stay compliant, save money, and plan smarter. Whether you're a solo entrepreneur, a growing startup, or someone navigating complex tax scenarios, a reliable CPA is a long-term partner in your financial journey.

The right CPA for your needs will understand your unique situation, communicate clearly, and provide value beyond just tax filing. Take time to research, ask the right questions, and don't be afraid to interview multiple candidates before making your decision.

Remember, the goal isn't just to get your taxes done, it's to work with CPAs who can help you optimize your entire financial strategy.

At Madras Accountancy, we don't just file your returns, we help you make sense of your numbers, stay ahead of tax rules, and make confident decisions. From individual planning to startup-friendly bookkeeping and fractional CFO services, our team is built to support you as you grow.

Ready to find a CPA who actually fits your needs? Visit madrasaccountancy.com to get started.

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