How to Hire a CPA for Your Small Business: Checklist, Questions and Red Flags

Quick answer: Hire a CPA when your business has outgrown do-it-yourself filing, when you have employees, or when a tax or lending decision is bigger than you want to guess at. Verify the license on the state regulator's website, ask the questions below, and pick someone who knows your type of business, explains things plainly and answers when you call.

If you are searching "hire a CPA," you are probably past the research stage and close to a decision. This guide covers when to hire, how to confirm the license, ten questions to ask before you sign, the red flags that should make you walk, what the first 90 days should look like, and how to switch if your current CPA is not working out.

Key takeaways

• Check the license first. In Illinois, use the IDFPR license lookup. NASBA's CPAverify gives a second check.
• Ask who does the work. The person who sells you the engagement and the person who prepares your return may be different people.
• Look for industry experience. A CPA who works with businesses like yours will catch things a generalist misses.
• Expect planning, not just filing. If you only hear from the CPA in March, you are paying for preparation, not strategy.
• Get the fee and scope in writing before work starts. We quote ours after a free 20-minute call.
• The first 90 days matter. A good onboarding clears up old issues and sets a calendar for the year.

When does a small business need a CPA?

You do not need a CPA on day one of a side business. But several moments call for one:

• You have employees. Payroll and worker classification create real exposure when done wrong.
• You are choosing or changing your entity type. LLC, S corporation and other structures carry different tax results, and the decision is hard to reverse cleanly.
• You are taking a loan, bringing in a partner, or selling. Outsiders will want financial statements that stand up to review.
• Your tax bill keeps surprising you. That usually means no one is planning during the year.
• You got an IRS or state notice. Representation rights matter here (more on that below).
• Your books are behind. A CPA firm can reconcile and clean them up so returns are accurate. See our catch-up bookkeeping service.
• You run a regulated or specialized business, such as a healthcare agency, a dental or medical practice, or a franchise, where industry rules affect the numbers.

If several of these apply, you are the typical client for small business accounting: one firm that keeps the books, runs payroll, prepares taxes and reviews your numbers.

How do you verify a CPA's license in Illinois?

Do this before the first meeting. It takes about five minutes.

1. Go to the IDFPR Check a License page. The Illinois Department of Financial and Professional Regulation links its single-license lookup for the Division of Professional Regulation there. The lookup checks whether an individual or entity is licensed, and the state says it is updated daily.
2. Search the person's name, and the firm's name too. Read the license type, status and expiration date.
3. Run a second check on CPAverify. NASBA's free CPAverify tool is fed by state boards of accountancy and lists license status and, in many states, disciplinary information. It covers multiple states in one search. NASBA notes that 53 of 55 jurisdictions participate, so an empty result is not proof of no license. Confirm with the issuing board.
4. If you also need tax work, ask about IRS credentials. The IRS says paid preparers need a PTIN, and it publishes a Directory of Federal Tax Return Preparers that lists those with credentials the IRS recognizes.

A license does not prove skill or fit, but an inactive or missing license ends the conversation. For how titles like "accountant" and "tax preparer" differ from a CPA, see our post on CPA vs. accountant vs. tax preparer in Illinois.

Ten questions to ask before you hire a CPA

1. Do you work with businesses like mine? Ask for the industry, the typical size and what issues they see often. Specific answers beat a generic yes.
2. Who will actually do my work? Find out who prepares, who reviews and who you will talk to. A partner may sell the work while staff does it, which is fine if the review is real.
3. How will we communicate? Ask how fast calls and emails are returned and how often you will hear from them without asking.
4. When will I hear from you during the year? Look for planning touchpoints, such as a mid-year review, estimated tax check-ins and a year-end meeting.
5. How do you charge? Flat fee, hourly or monthly retainer. Ask what is included and what triggers extra charges, and get it in writing.
6. What software do you use? If you run QuickBooks Online or another platform, make sure they work in it. Ask how they handle secure document sharing.
7. Will you handle the books too, or only the return? One firm doing both (as in our small business accounting service) avoids hand-offs. If not, ask how they coordinate with your bookkeeper.
8. Can you represent me if the IRS or state writes? CPAs have unlimited representation rights, which the IRS describes as the ability to represent a client on any matter, including audits, payment and collection issues, and appeals. Ask what is included in your fee and what is billed separately.
9. What happens if you make a mistake? A firm should be able to explain its review process, and its professional liability coverage if you ask.
10. Can I talk to a client or read reviews? Reviews on Google and professional directories are a start. Note what they say about responsiveness, not only price.

If the answers are vague, that is information.

What are the red flags when hiring a CPA?

• The license is missing, expired or under discipline on the state or CPAverify lookup.
• Promises of a guaranteed refund or a specific savings number before they have seen your records.
• Pressure to sign right now, or reluctance to put the scope and fee in writing.
• No answer to "who does the work."
• Slow or no replies during the sales process. It rarely improves after you pay.
• Willingness to sign a return they did not prepare or review, or to leave the preparer line blank.
• No interest in your business. A CPA who does not ask about your revenue, employees or goals is likely to apply a template.
• Fees based on a percentage of your refund. Ask for a fee that reflects the work, not the size of the refund.

What should the first 90 days with a new CPA look like?

A good onboarding is organized. Here is a reasonable pattern:

Days 1 to 30: discovery and cleanup

• Sign an engagement letter that states scope, deliverables and fees.
• Share prior returns, financial statements, payroll reports and any notices.
• The CPA reviews for open issues: late filings, miscoded accounts, unfiled forms or unreconciled balances.
• Decide who will keep the books going forward.

Days 31 to 60: set the system

• Connect bank feeds and accounting software, and agree on a document upload process.
• Establish a monthly or quarterly calendar for close, estimated taxes and payroll deadlines.
• Fix prior-period items identified in the review.

Days 61 to 90: first planning conversation

• Review results against last year and against your goals.
• Discuss entity structure, owner pay, retirement contributions and equipment purchases.
• Agree on what you will hear about and when for the rest of the year.

If your books are behind, the first 30 days is also when a cleanup happens. We lay out the process on our catch-up bookkeeping page.

How do you switch CPAs without drama?

Changing CPAs is common and usually uneventful. A clean switch looks like this:

1. Choose a good time. After a return is filed or at a quarter-end is easiest, but any time works if the relationship has broken down.
2. Hire the new CPA first. Do not terminate your old one until the new firm has agreed to take you on.
3. Sign a written authorization so the new CPA can contact the old one and request prior-year returns, workpapers and records.
4. Gather your own copies of returns, payroll reports and statements, in case of delay.
5. Tell the old CPA in writing that you are moving. Keep it short and professional.
6. Ask the new firm to review the old work. That review is where missed deductions or late filings come to light.
7. Update access. Change shared credentials for software and any bank feeds, and make sure the old firm's access to your IRS and state accounts is ended where applicable.

What about a local CPA vs. one who works remotely?

Both work. A local firm gives you in-person meetings. A remote-friendly firm gives you more choice, through secure portals and video calls. Whichever you pick, test responsiveness before you sign.

If you are in the western suburbs of Chicago, our Naperville CPA page explains how our Lisle office serves Naperville and the area, in person or by video. We also work with clients remotely in other states.

What does a free 20-minute call with Christian Soriaga, CPA cover?

If you want to test a CPA before you commit, a short call is the lowest-risk way. Here is what a call with us covers:

• Your situation, in your words: what you do, how many employees you have, and what is frustrating you now.
• What you have in place: who keeps the books, who prepares taxes, and what software you use.
• Whether we are a fit. We serve small businesses, healthcare agencies and dental and medical practices, in English and Spanish. If your needs are outside that, we will say so.
• A rough scope of what we would do, and how we would quote it. Fees are quoted in writing after the call and depend on your situation, so there are no surprises.
• Next steps, whether that is a cleanup, monthly bookkeeping, tax preparation, or a plain answer that you do not need us yet.

You can book a free 20-minute call with Christian Soriaga, CPA. Soriaga & Associates, LLC is a CPA firm founded in 1985 in Lisle, Illinois, serving clients nationwide. Prefer to talk first? Call (630) 491-1268.

Frequently asked questions

How do I verify that a CPA is licensed in Illinois?

Use the Professional Regulation license lookup linked from the Illinois Department of Financial and Professional Regulation (IDFPR) Check a License page. Search the person's name and read the license type and status. For a second check, NASBA's CPAverify tool lists license status and disciplinary information supplied by state boards. If the person is licensed in another state, search that state's board as well.

When should a small business hire a CPA?

Hire one when the business is earning revenue and you are past simple sole-proprietor filing, when you have employees, when you are choosing or changing an entity type, when you are applying for a loan, or when you receive an IRS or state notice. Many owners wait until a problem forces the decision, and that is usually the more expensive time to start.

How is a CPA different from a tax preparer?

Anyone paid to prepare a federal return needs an IRS preparer tax ID (PTIN), but a PTIN is not a professional license. CPAs, enrolled agents and attorneys can represent you before the IRS on any matter, while PTIN-only preparers cannot. A CPA also adds planning, review of your books and attestation work that preparers do not.

Should I hire a local CPA or one that works remotely?

Either can work. What matters is responsiveness, security and relevant experience. A local firm lets you meet in person. A remote firm gives you more choice, and most documents and meetings can be handled securely online. Ask how the firm handles document sharing and how quickly it replies.

Can I switch CPAs mid-year?

Yes. You can change at any time. The best moments are after a return is filed or at a quarter-end, but you can move whenever the relationship stops working. Ask your old CPA for your records and prior-year returns, and have the new CPA contact the old one for the transition.

What should I bring to a first meeting with a CPA?

Your last one or two tax returns, your most recent financial statements (or bank statements if you have none), any IRS or state notices, a list of the software you use, and a short list of what is frustrating you. You do not need to organize it perfectly. Showing up with questions is enough.

Next step

Choosing a CPA is easier when you can hear how they think. Book a free 20-minute call and bring your last return and one question you have been putting off. You can also read more about our tax preparation services or call (630) 491-1268.

Sources

• Illinois Department of Financial and Professional Regulation, Check a License (links to the Professional Regulation license lookup, updated daily)
• NASBA, CPAverify and All About CPAverify
• IRS, Choosing a tax professional (PTIN requirement; Directory of Federal Tax Return Preparers)
• IRS, Understanding tax return preparer credentials and qualifications (unlimited vs. limited representation rights)

Last updated: October 2026.

This article is general information, not legal or tax advice.

Soriaga & Associates, LLC is a CPA firm founded in 1985 in Lisle, Illinois, serving small businesses, healthcare agencies and dental and medical practices nationwide, in English and Spanish. (630) 491-1268.