How to Hire a CPA That Actually Saves You Money

Learning how to hire a CPA to manage your taxes and accounting is a critical decision.

The decision will either move your finances in the right direction or have you tossing your hard-earned cash right down the drain.

For business owners and investors who may already owe taxes when filing, a bad CPA can cost you tens of thousands of dollars out of pocket each year.

On the flip side, a great CPA is an investment.

They become your right hand in finances, helping you cut your taxes, improve cash flow, and protect your wealth.

However, many struggle with knowing how to hire a CPA.

You may not know:

1. The right questions to ask
2. What the risks entail
3. Rely on gut instinct rather than clear criteria

If this sounds like you, this guide will help you get started in the right direction.

Here is everything you need to know to hire the right CPA and legally avoid paying taxes you may not owe.

The Benefits of Hiring a Great CPA

A great CPA will help you reduce expenses, monitor your financial health, and guide you to financial success.

As Warren Buffet famously stated, “accounting is the language of business”. For many people, this language is very complex.

A great CPA is a master of this language, satisfying rigorous education and experience requirements.

When utilized, a great CPA will identify substantial savings and implements strategies for long-term wealth.

In this section, you will learn how the right CPA can minimize your largest expense and mitigate the risk of running out of cash, making it one of the smartest tax reduction strategies you can pursue.

Reducing Your Largest Expense: Taxes

When it comes to your most significant expense, it usually is not your mortgage, rent, childcare, or healthcare.

It is taxes.

When you overpay in taxes, you eliminate money to invest in your business, purchase assets, fund your retirement, or enhance your lifestyle.

A great CPA will not just file your taxes. They will manage it throughout the year to reduce the amount you pay.

Monitoring Your Financial Health

Most businesses go out of business because they run out of cash. 

Many investors and businesses fail to monitor their cash flow and are often surprised when this risk poses a major issue.

A great CPA will monitor your cash flow, find savings opportunities, and help you maintain a strong cash position that allows your business to flourish.

You should keep both your largest expense (taxes) and your largest risk (cash flow) in mind when hiring a CPA. 

It is essential to know how much of your income you are legally required to pay and where you can take small business tax deductions.

What to Look for in a Great CPA

When determining how to hire a CPA to deliver measurable savings, there are specific qualities to consider.

The key points below can be what separates a great CPA from an average one.

They Specialize in Tax Reduction

The right CPA understands the tax code and knows how to reduce what you owe.  

If your CPA only talks to you to file your taxes, you may be missing out on advanced planning opportunities.

A great CPA does not just file your taxes – they manage it. They will work with you year-round to project your income, tax liability, and execute strategies to reduce your taxes.

For instance, if you are a real estate investor, a great CPA should be able to advise you on tax strategies such as cost segregation studies, bonus depreciation, 1031 exchanges, and passive activity rules.

These tax-saving strategies require expertise, not general knowledge.

They Help You Understand Your Financial Health

One of the key benefits of working with an experienced CPA is the clarity they provide regarding your business’s financial health.

It goes beyond balancing books and filing tax returns.

It is about transforming financial data into strategic insights that drive growth and stability. 

A great CPA will be able to provide strategic insights into your cash flow, budgeting, and profitability, empowering you to make informed decisions about investments, hiring, and scaling operations. 

Understanding your financials enables proactive planning, allowing you to identify inefficiencies and capitalize on growth opportunities while minimizing risks. 

The right CPA will be a partner in your growth, providing the financial intelligence you need to succeed confidently.

They Have Experience with People Like You

To build on the section above, a CPA with industry-specific knowledge is essential.

A great CPA should be familiar with the unique tax challenges and opportunities associated with your income sources, business model, and long-term goals.

For example, a CPA who primarily works with individuals may not be familiar with maximizing deductions for business owners, real estate investors, and high income individuals.

That lack of knowledge could result in higher taxes and lower profits.

When evaluating your options, ask specific questions such as:

• What types of clients do you typically work with?
• Can you share case studies of how you have helped someone in my industry reduce their taxes?

A CPA should be confident in their responses and include examples to support them.

If they have to guess or generalize, they may not have the right experience to advise you effectively.

Understanding how to hire a CPA with proven results in your field provides a significant advantage.

You will not waste time explaining how your business works, and they will already be familiar with the common downfalls and opportunities that others in your industry face.

They Are Responsive

Communication should be non-negotiable with your CPA.

Not just because it provides good customer service but because delayed communication can negatively impact your finances.

When deciding how to hire a CPA, you should look for one that responds to your emails or calls within 24 to 48 hours.

Anything longer than this timeframe can cause you to miss a deadline for time-sensitive decisions.

It can also lead to losing out on deductions, paying penalties, or incurring unnecessary tax liability.

While CPAs may be overwhelmed during tax season, they should still prioritize communication with clients and have systems in place to ensure timely responses throughout the year.

Results-Driven

As my professor once said, “a great CPA will always pay for themself”. That’s why we guarantee results with our Online CPA Services at our firm.

When you understand how to hire a CPA who works this way, you are shifting your expectations toward real value.

This can be especially true when you consider that the average cost of tax preparation by CPA is typically outweighed by the benefits they deliver.

For many people, that involves tax savings, higher profits, and less stress throughout the year.

Hiring a CPA should not feel like paying a vendor.

If your CPA cannot quantify the value they bring, it is fair to question whether they are doing enough to justify their fee.

When their compensation aligns with the value they provide, you can be confident that your financial interests are their top priority.

How to Hire a CPA That Reduces Your Taxes

As a high-income business owner, you want to be sure that you are intentional when hiring a CPA because your money is on the line.

Use the questions below as a filter.

If your prospective CPA cannot confidently answer these questions, it is probably not the right fit.

Questions to Ask Before You Hire a CPA

1. Do you offer tax planning services in addition to tax preparation?

Remember, only 20% of firms offer tax planning; ensure your CPA provides this service to help you maximize your savings.

2. Do you guarantee any level of tax savings?

While no CPA can legally guarantee exact results, they should be able to provide a savings range based on your prior returns.

3. What industries or client types do you serve most?

A CPA with experience in your field will know what strategies, deductions, and credits may apply to you.

4. How soon do you respond to client messages?

A great CPA will commit to replying within 1-2 business days.

If a CPA cannot answer this question or avoids it, that is a red flag.

5. Can you help me with a specific problem or goal?

Do not be afraid to ask about real concerns:

• Can you help me reduce my taxes?
• Can you help me legally avoid paying taxes on short-term capital gains?
• Can you explain the best entity structure for my second business?

If they hesitate or talk in circles, keep looking.

Bottom Line

When you know how to hire a CPA the right way, one who offers tax planning, knows your industry, and responds quickly, you position yourself to have more control over your finances.

Taxes can be a burden, but with the right CPA, they do not have to be.

If you are ready to work with a CPA who delivers real results, not just paperwork, it might be time to give My CPA Coach a try.

When you set up a free consultation with us, you will see how dedicated we are to ensuring you finally pay only what you legally owe, nothing more.