4 Things to Look for When Choosing an Accountant

Over my years in industry, I’ve seen the same situation unfold time and time again. A small business owner calls in a panic: there’s a CRA issue, a missed deadline, an unresponsive accountant, or a dispute over records and fees. The situation feels overwhelming. In many cases, the problem could have been avoided with proper professional practices.

Consider these real-life examples:

Client 1: Multiple CRA GST review requests were ignored, until finally a deadline was missed. What started as a routine review snowballed into assessments, penalties, interest, and significant professional fees to correct the situation.

Client 2: Two weeks before an important filing deadline, a client discovered that their accountant had effectively disappeared. With no response to emails or phone calls, and no copies of historical records, the client was left scrambling without professional assistance.

Client 3: After deciding to switch accountants, a client was presented with several years of previously unbilled fees. A dispute followed, and access to historical records became a contentious issue.

The common thread? None of these clients had verified their service provider’s qualifications. None of the individuals involved were CPAs, and none were subject to the professional standards, ethics requirements, or regulatory oversight that come with the designation.

The reality is simple: anyone can call themselves an accountant. That doesn’t mean that they have the training, accountability, or expertise to provide sound, consistent professional advice.

Before hiring a new accountant, here are four things every business owner should consider:

1. Qualifications

Anyone can call themselves an “accountant” without holding specific qualifications or a professional licence. This differs from professions such as law or engineering, where the use of professional titles is regulated.

When choosing an accountant, look for a CPA designation. Accountants who are registered members of Chartered Professional Accountants of Alberta are required to maintain high professional standards, complete ongoing professional development, adhere to a code of ethics, and are subject to regulatory oversight and practice review.

To verify the status of an accountant or firm, visit CPA Alberta’s member directory.

2. Established Presence and Accessibility

Is your accountant easy to reach, and do they have an established professional presence? Basic indicators of professionalism include a business phone number, a professional website, a physical office or established place of business, and additional team members who can assist you when needed.

Potential red flags include:

• No phone number or established place of business.
• Using a personal email address (such as Gmail or Hotmail) rather than a business domain.
• Asking for your CRA user ID or password instead of being properly authorized as your CRA representative.
• Holding information and records hostage by refusing to provide copies of records, reports, tax returns, or other important documentation.
• No website, online presence, established reputation, or trusted referral sources.

3. Professional Fees Within Market Range

Professional accounting firms incur significant costs to provide quality services. These costs include professional software, licensing fees, continuing education, professional memberships, and liability insurance.

In addition, a CPA has invested years in university education, professional training, examinations, and practical experience requirements. Professionals who have made this investment and maintain these standards generally cannot offer services at substantially below-market rates. While low fees may be appealing, unusually low prices can warrant additional scrutiny.

4. Shop Around

Ask friends, family members, business associates, or other trusted advisors for referrals. Meet with a few different professionals before deciding. Comparing qualifications, communication styles, service offerings, and fees will help you determine who is the best fit for your needs.

A good accountant should make you feel comfortable asking questions, explain matters clearly, and demonstrate a genuine interest in helping you achieve your goals.

Conclusion

Choosing an accountant is about more than finding someone to file your tax returns. The right advisor should help you stay compliant, avoid costly mistakes, identify opportunities, and provide valuable guidance as your business grows. The wrong advice can result in a myriad of avoidable issues: missed deadlines, penalties, unnecessary stress, and unnecessary costs.

Taking appropriate steps to verify qualifications, assess professionalism, compare service providers, and ask the right questions can save you significant time, money, and frustration in the future.

If you’re currently working with an accountant, consider whether they meet the standards outlined above. If you’re searching for a new advisor, take the time to do your homework before deciding.

Have questions about your accounting or tax situation, or looking for a second opinion? Contact our team to schedule a consultation. We’d be happy to discuss your needs, and help determine whether we’re the right fit for your business.