Choosing a CPA is one of the most consequential decisions a small business owner makes. The right CPA is a strategic partner — they help you build the right entity structure, minimize your tax liability legally, stay compliant across federal and Utah state obligations, and make better financial decisions. The wrong CPA is a filing service that processes your return without ever giving you actionable guidance.
This checklist walks through every criterion worth evaluating before you sign an engagement letter.
Step 1: Verify Credentials and Licensing
Not every “accountant” or “tax professional” is a CPA. The CPA designation requires:
- Bachelor’s degree with specific accounting coursework
- 150 credit hours of education (typically a master’s or equivalent)
- Passing all four sections of the Uniform CPA Exam
- 1–2 years of supervised work experience
- State licensure
In Utah, CPA licenses are issued by the Utah Division of Occupational and Professional Licensing (DOPL). You can verify a CPA’s license status at dopl.utah.gov — look up the licensee name and confirm the license is active and in good standing.
Also check:
- Any disciplinary history with DOPL
- AICPA membership (professional standards)
- Whether the CPA carries professional liability (errors and omissions) insurance — all reputable firms do
Enrolled Agents (EAs) are also federally licensed tax professionals with authority to represent clients before the IRS. EAs are strong for tax representation and compliance but typically do not provide the full range of business advisory, audit, and accounting services a CPA offers.
Step 2: Assess Specialization and Experience
The CPA who handles your neighbor’s personal return may not be the right fit for your growing construction LLC. Look for a CPA whose practice aligns with your needs.
For small business owners, ask:
- What percentage of your clients are small business owners?
- What industries do you work with regularly? (Manufacturing, retail, professional services, real estate, construction, healthcare?)
- Do you handle both business returns and owner personal returns?
- Do you prepare Utah TC-20S and TC-65 returns, or just individual TC-40s?
- Do you advise on entity structure, or only prepare returns after the fact?
For specific needs, look for demonstrated experience in:
- S-Corp elections and reasonable salary analysis
- Utah PTET elections
- Business formation and restructuring
- Business sales and acquisitions
- Self-employed retirement planning
- Estate and succession planning
- Payroll tax compliance
A generalist CPA can handle straightforward situations. As your business grows or your situation becomes more complex, specialization matters more.
Step 3: Evaluate Technology and Systems
The best CPAs work in cloud-based systems that allow real-time access to your books, efficient document collection, and year-round communication — not annual file transfers and in-person-only meetings.
Ask about:
- Accounting software: Do they primarily work in QuickBooks Online or Xero? Can they access your books directly?
- Document portal: How do you share tax documents? (Secure portal = professional; email of unencrypted PDF = outdated)
- E-signatures: Can you sign documents electronically?
- Cloud integration: Can they receive your books, receipts, and documents digitally, or do they need paper?
- Payroll integration: If you have employees, do they integrate with your payroll provider?
A CPA firm still working from paper and requesting annual Dropbox dumps of PDFs is behind the curve. Cloud-integrated practices are faster, more accurate, and better positioned to catch issues before they become problems.
Step 4: Understand Their Service Model
CPA firms vary enormously in how they structure their services — from pure compliance (file your return and nothing else) to full advisory (proactive planning throughout the year).
Questions to clarify:
- Is your engagement year-round or only at tax season?
- Do you reach out proactively when tax law changes affect my situation, or do I need to initiate contact?
- How do you charge — hourly, fixed fee, or retainer?
- Will I work with the same CPA throughout, or is my return handled by staff I never meet?
- What is your response time for questions? Email, phone, or portal?
- Do you represent clients in IRS audits and notices, and is that included in your engagement or billed separately?
Red flags:
- No written engagement letter
- Promises of unusually large refunds before reviewing your documents
- “Sign here” without explaining what you are signing
- Preparer not available or responsive between March 15 and April 15
Step 5: Discuss Fees and Scope Clearly
Tax preparation fees vary by complexity. A solo Schedule C with no employees is much simpler than an S-Corp with payroll, multi-state nexus, and a dozen employees. Get a written fee estimate before engaging.
Typical engagement types:
- Tax preparation only: Annual fee for preparing and filing your business and personal returns
- Bookkeeping + tax: Monthly bookkeeping service plus annual tax preparation
- Advisory retainer: Monthly or quarterly access to the CPA for planning discussions, estimated tax guidance, and questions
Questions to ask about fees:
- What is included in the base fee, and what is billed additionally?
- How do you handle scope changes (e.g., IRS notice, added state filing)?
- Is there a fee for mid-year planning calls, or are those included?
- Do you charge for estimated tax payment calculations?
Get the fee structure in writing in the engagement letter. “We’ll figure it out at the end” is not a professional arrangement.
Step 6: Evaluate Communication and Fit
Your CPA relationship is long-term. You will share sensitive financial information, discuss business decisions, and rely on their judgment in stressful moments — audits, restructurings, sales. Communication style and personal fit matter.
Signs of a good fit:
- Explains complex concepts in plain language without condescension
- Asks about your business goals, not just your prior-year numbers
- Returns calls and emails within 24–48 hours during non-peak periods
- Gives you a direct opinion when asked, not just “it depends”
- Proactively identifies issues rather than waiting for you to ask
Signs of a poor fit:
- Overloaded with too many clients to give you attention
- Speaks in jargon without explaining
- Makes you feel like a burden for asking questions
- Does not know your business or your prior-year situation without re-reading the file
Step 7: Questions to Ask in the First Meeting
Take this list to your first consultation:
- Are you a licensed CPA in Utah? Can I verify your license at dopl.utah.gov?
- What percentage of your clients are small business owners?
- Do you have experience with my industry?
- Do you handle both my business return and my personal return?
- Do you advise on entity structure, or only prepare returns?
- What accounting software do you work in?
- How do I share documents with you?
- How do you charge — flat fee, hourly, or retainer?
- Who specifically will work on my return?
- What is your response time for questions?
- Do you represent clients in IRS audits?
- What proactive communication can I expect from you throughout the year?
A Note on Cost
The cheapest CPA is rarely the best value. A CPA who charges $500 for a Schedule C return but misses the S-Corp election that would save you $12,000 in annual payroll taxes costs you far more than the fee difference. Look for a CPA who demonstrates value through knowledge and proactive guidance — not one who competes on price.
Call (801) 927-1337 or email admin@cpaone.net to schedule a no-obligation initial consultation. We work with Utah small business owners across Kaysville, Davis County, and the broader Wasatch Front — and we take the time to understand your business before making any recommendations.
About the Author: Missy Dennis, CPA is a Partner at FJ & Associates, PLLC in Kaysville, Utah. She holds a Master of Accounting degree from the University of Utah and is a licensed Certified Public Accountant with more than twenty years of public accounting experience. Missy specializes in tax preparation and tax advisory, bookkeeping strategy alignment, estate and trust taxation, audit and consulting services, low-income housing tax credits, non-profit accounting, and small- and mid-sized business advisory. She is committed to providing clear, accurate, and actionable guidance so clients can navigate complex financial decisions with confidence.
