10 Traits to Look for in a CPA

[Bryan Martin]

Lately, I've seen a lot of real estate investors asking what qualities to look for when hiring a CPA on Bigger Pockets and hope this post will provide some insight into what to look for whether you're looking for a CPA local to your area or a virtual CPA.  If looking for a CPA this tax season, here are the ten areas I recommend looking into.  Some are essential (tax knowledge), some aren't necessarily essential, but looking for them will likely give you a much better experience (good chemistry, certain credentials).

1. Real estate investment experience: A CPA who has worked with real estate investors can provide valuable insight into the tax implications of real estate investments. Although being a real estate investor isn't necessarily required, there are a lot of benefits to hiring one that invests in real estate themselves.  Sample question: Can you tell me about a time when you helped a real estate investor save money on their taxes?
2. Tax knowledge: Look for a CPA who stays up-to-date on current tax laws and can help you minimize your tax liability. Sample question: How do you stay current on changes in tax laws and regulations that impact real estate investments?
3. Communication skills: A CPA who can explain complex tax concepts in plain language will make tax time much easier and a better experience. Sample question: Can you explain a complicated tax concept to me in a way that's easy to understand?
4. Availability: Look for a CPA who is responsive and can answer your questions and concerns in a timely manner. Don't expect to hear back within 15 minutes on a Sunday at 6 pm.  But also don't accept not hearing back due 15 days.  Sample question: How quickly can I expect to hear back from you if I have a question or concern?
5. Proactivity: A CPA who can identify tax planning opportunities and strategies to minimize your tax liability can save you a lot of money. Sample question: Can you give me an example of a tax planning opportunity you identified for one of your real estate investor clients?
6. Attention to detail: A CPA who pays attention to details can ensure that your financial statements are accurate which is viral fire your long term planning and if Uncle Sam's IRS agents give you a visit.  Sample question: How do you ensure the accuracy of financial statements?
7. Tech-savvy: A CPA who is comfortable with technology can their and the client's job much easier. Sample question: What types of software tools do you use to streamline accounting and financial management tasks for your clients?
8. Good references: Look for a CPA with positive references from other real estate investors or people that you trust. Sample question: Can you provide me with references from other real estate investors you've worked with?
9. Professional credentials: Look for a CPA with relevant professional credentials, such as a CPA license or an Enrolled Agent designation. Sample question: What professional credentials do you have that make you qualified to work with real estate investors?
10. Good chemistry: It's important to choose a CPA that you feel comfortable working with and who shares your financial goals. Sample question: How do you approach building a good working relationship with your clients?

Wrapping up with one last piece of advice: Don't be afraid to shop around until you find a CPA who meets most of your criteria.  Outside of your spouse/partner and your doctor, your accountant probably knows more about your personal life than anyone else.  Finding one that you can have a long term relationship with and grow with together is a very valuable thing and shouldn't be taken lightly.