Hire the Top 3% of Freelance Certified Public Accountants (CPA)

Companies Seek the Financial Expertise of CPAs Amid a Talent Shortage

Certified public accountants (CPAs) are typically in high demand during tax season, but they also help companies outside of the annual tax filing rush. CPAs handle a wide range of financial matters, such as organizing and cleaning up financial records, analyzing financial risk, and advising on financial management. Some CPAs serve as fractional or interim chief financial officers (CFOs) or controllers who oversee a company’s finance department.

All CPAs are accountants, but not all accountants are CPAs. The CPA credential is earned through a mix of formal education, practical experience, and testing: candidates must pass an examination set by the American Institute of Certified Public Accountants (AICPA) and administered by the National Association of State Boards of Accountancy (NASBA). The credential offers assurance that the professional has a solid accounting background. As the accounting function is critical to a company’s financial success, business owners often look to hire a CPA to handle these specialized tasks.

However, hiring the right CPA can be challenging because of a talent shortage. AICPA estimates that about 75% of CPAs became eligible for retirement as of 2020. At the same time, fewer people are seeking CPA credentials. With an estimated shortage of 340,000 accountants in the US, it’s becoming increasingly difficult to hire a good CPA.

Finding top talent can also be challenging because many companies may not fully understand their financial and accounting needs or know what qualities make a suitable CPA candidate. In fact, some business owners seem to view accounting as a burdensome necessity and they want as little to do with it as possible. Founders and hiring managers often find it easy to assess expertise in other business areas (e.g., operations, marketing) because of their own experience, but hard to identify a solid accountant due to the field’s technical nature.

This guide shows you how to hire a CPA by outlining the levels of experience and areas of expertise that make a strong candidate for your company. It also shares factors to consider as you evaluate talent, and outlines tips for writing job descriptions and conducting interviews.

What Attributes Distinguish Quality CPAs From Others?

Quality CPAs have strong analytical, problem-solving, and computer skills, as well as deep knowledge of business operations. Companies can evaluate talent by considering a CPA’s experience and approach.

A strong CPA has at least three to five years of experience in public accounting, ideally at a well-respected CPA firm. As no one understands how to rate a CPA better than a fellow CPA, these professionals will also have excellent references from previous employers.

In addition to experience, a good CPA approaches tasks from a big-picture standpoint. These practiced accountants know that cleaning up a company’s books primarily involves correcting the balance sheet, which is key to getting the correct bottom line on the profit and loss (P&L) statement. An accountant who doesn’t take this approach may get lost in the weeds of the accounts on the P&L statement because they haven’t looked at the balance sheet. This detailed but blinkered approach may actually worsen the state of your company’s books.

Quality CPAs also possess role-specific attributes that distinguish them from others. For instance, a solid tax CPA takes the time to understand your organization. They welcome your questions about tax deductions and ideas on the best way to approach your business taxes. They also ask about various facets of your company, such as depreciation options, vehicle use, ownership changes, deductible meals, and energy, research and development (R&D), and fuel tax credits. Case in point: An accomplished CPA will know to ask a manufacturer about its forklifts to determine if the company qualifies for the Alternative Fuel Excise Tax Credit, which may provide a nice reduction in business taxes. This niche case illustrates just one way a well-prepared tax return requires significant interaction between the CPA and business owner.

For CPAs who are hired to serve as a company’s fractional CFO, five to 10 years of finance experience coupled with strong communication skills, credibility, and an entrepreneurial spirit is critical. A qualified CFO understands their mission is to maximize stockholder investment returns, while controlling a company’s finances and providing a clear financial roadmap for the future.

Complementary Skills for CPAs

A diverse skill set enables CPAs to move between different projects and clients with ease. Depending on your needs, here are are some complementary skill areas you may want to look for when hiring a CPA:

Compliance – A CPA with strong expertise in compliance will ensure that your company adheres to accounting and finance standards, while complying with the regulations and laws of your industry. Compliance also ensures sensitive data is secure, financial data is sound, and the risk of fraud is minimized. This skill is crucial for CPAs who provide tax preparation services and who work in industries like banking, healthcare, and insurance.

Risk management – Risk management involves recognizing, understanding, and mitigating financial risk. A CPA with this expertise can help a company conduct benchmarking studies to gauge risks, enhance internal controls, create metrics to assess the effectiveness of risk management actions, and advise on risk disclosures in financial reports.

Data analysis and data visualization – A CPA who focuses heavily on accounting services, such as preparing financial records and providing financial consulting, would benefit from experience with data analytics software like Power BI. These tools help professional accountants integrate data from various sources, draw insights, and visually present this intelligence across the organization.

Software – A superior CPA is highly proficient in Excel and capable of learning any accounting software. Many small to midsize companies in the US and Canada use QuickBooks, whereas those in Australia and Europe often work with Xero or Zoho Books. While prior software experience is always a benefit, it should not be the deciding factor when you make your choice. It is better to hire a top CPA who is good at learning new software than a mediocre CPA who has deep experience with a particular accounting or tax software.

How Can You Identify the Ideal CPA for You?

Your ideal CPA will have experience that closely aligns with your needs, from both a company and project perspective. The first step in your hiring process is clearly identifying whether you are hiring a CPA to work on projects like handling taxes and organizing financial records, or to serve in a fractional or interim role such as CFO or corporate controller.

For tax-related projects, consider hiring a CPA who has experience with the size and legal type of your business entity. A company that’s a partnership or S corporation, in growth mode, and with $5 million in annual revenue will be better served by a CPA who has solid experience with similar entities than one who has never handled this situation.

If your firm is in a specialty area like R&D or software as a service, it’s imperative that you hire a CPA who specializes in the same field. For example, a software startup with seed round funding, convertible debt, and employee stock options will be best served by a CPA who has deep expertise with similar situations.

Your ideal candidate will also be experienced in the type of work you are hiring for. Here’s the type of experience to look for when hiring CPAs for those common scenarios:

• Organizing financial records: Hire a CPA who has worked on similar projects.
• Migrating to an enterprise resource planning (ERP) system: Choose a candidate who has completed at least one or two similar projects—and has the references to prove it.
• Preparing financial records to secure investment funding: Hire a CPA who has deep knowledge of investor funding rounds and banking requirements.
• Serving as a fractional CFO: Select a candidate who has a strong track record across different business models and industries.

When assessing candidates, it’s also critical to consider the level of experience your project requires:

Junior talent – A junior candidate typically brings about two years of experience in public accounting, and has provided services for multiple clients ranging from individuals to large corporations. This professional may be well suited for a sole proprietorship that has one checking account and one credit card. They could complete basic document filing, payroll, and tax work, as well as simple QuickBooks or Xero cleanup.

Mid-level talent – A mid-level professional who has worked as a public accountant for more than four or five years may be ideal for more advanced companies like partnerships and S corporations. Tax-focused CPAs in this category may be well positioned to address complicated tax situations, such as multistate operations and shareholder or partnership buyouts. CPAs with this skill level may also be suited to serving as fractional or interim controllers and cost accountants at private companies.

Senior talent – For projects that call for significant strategic expertise and occupational experience, a highly skilled CPA is the best candidate. These experts possess more than 10 years of experience in public accounting and private accounting across multiple industries and with various accounting platforms. Someone with this deep knowledge can help a software company develop an accounting or tax app, advise a company on the best legal structure to maximize growth, or consult on international taxes, depending on their area of experience. These highly skilled professionals are also the best fit for fractional CFO roles.

As you evaluate talent, it’s wise not to prioritize price. A top CPA may charge more for their services, but their strategic expertise and tax advice may save you money in the long run. An average CPA may choose psychology over strategy and advise you to pay taxes up front to earn a refund at the end of the year. However, a more experienced tax CPA will generally try to defer your tax payments for as long as possible, allowing you to hold on to your money and maximize the interest you collect. For these reasons, it’s better to evaluate candidates based on skills, experience, and fit, rather than price.

Is It Better to Hire a Full-time or Freelance CPA?

Some business owners may contemplate whether to hire a full-time or freelance certified public accountant. In most cases, the freelancer may be the superior candidate because of their diverse experience. Freelance CPAs have typically worked in multiple industries, using diverse management styles and various software, and can draw on this rich experience to quickly find solutions for your business. In contrast, a CPA who is looking for permanent work has usually held longer-term, full-time positions at a few companies, and therefore brings less well-rounded expertise.

However, certain large corporations—such as those with annual revenues in excess of $50 million, or those that complete multiple mergers and acquisitions a year—may be better served by hiring a full-time CPA. A CPA whose attention is dedicated to just one company can support multiple initiatives and delve deeply into complex situations. Nonetheless, many large companies still prefer to hire freelance CPAs and fractional CFOs to meet their finance and accounting needs.

Is It Safe to Hire an Online CPA?

Yes, many qualified CPAs freelance online. While a number of bad actors take advantage of the anonymity of the Internet, restricting your search to local CPA offices and freelancers can limit your options because these accounting professionals may not have the specialized expertise your project requires. Online CPAs make up a larger pool of candidates, and can therefore offer you more choice.

The key to safely hiring an online CPA is to thoroughly research candidates and seek at least three references. You might also ask a well-respected accounting firm for its recommendation.

Can Companies Outside the US Hire a CPA?

Companies based outside the US can benefit from hiring a CPA due to the universal applicability of their accounting skills. Companies that expand to the US often hire CPAs to help them structure their American operations by identifying the state to register in, the optimal accounting software to use, and the best way to set up payroll.

However, for companies seeking tax services—and with no plans to expand to the US—it’s best to hire tax accountants in their country of business because these experts will have the best grasp of local tax laws and regulations.

How to Write a CPA Job Description for Your Project

A high-level job description that clearly articulates your current situation will better attract qualified CPAs for hire who meet your business needs. Here are some guidelines for crafting a strong job posting:

State the job title – CPAs can fill a variety of job openings, such as CFO, corporate controller, payroll manager, head of corporate tax, tax manager, head of financial planning and analysis, cost accountant, and treasury manager. Using an appropriate job title will likely draw qualified candidates.

Describe your company – Mention your company type (e.g., sole proprietorship, partnership, S corp, C corp, LLC), the sector you’re in, the accounting software you use, and how fast you’re growing. This information will help attract candidates who have experience with your type of entity.

Describe what you want done, not how you think it should be done – Keep the focus of your project description on your overarching objectives. For example, say that you want the consultant to perform an assessment of the company’s current accounting software and feasibility of moving to an ERP system—not that you want them to oversee a transition to a specific one. This signals that you are open to the CPA’s input on the project.

Make sure your project makes sense for one person – The lumping together of wildly disparate duties, such as bookkeeping, payroll services, administrative tasks, filing taxes, and consulting on international taxes may not appeal to a CPA. These diverse duties require different levels of experience, so it’s generally wise to hire for them separately.

Avoid editorializing – In some cases, business owners may opine on a project’s complexity without fully grasping what it entails. For example, a founder may assume that setting up a stock option plan is a simple job, but financial professionals would likely disagree. These assessments may deter potential candidates because they suggest a misalignment of expectations.

Show openness to CPA counsel – Many business owners may not be deeply familiar with the accounting function, and may not be able to define their needs. Clearly state up front that you need a CPA to analyze your situation, recommend next steps, and propose a project time frame. CPAs often encounter this situation and would appreciate this candor.

What Are the Most Important CPA Interview Questions?

Before you begin the interview process, prepare questions that will enable you to evaluate a candidate’s skills, experience, and approach. If you have no accounting experts on your team and are pursuing a large-scope endeavor, you may wish to consider hiring a CPA to participate in the interview.

Founders and hiring managers will have different interview styles, but here are a few sample situations with questions to ask and what to look for in the answers:

Hiring a CPA to Organize Financial Records

What is your approach to cleaning up the books?

This answer provides you with an objective way to evaluate a candidate’s approach. A qualified CPA will clearly follow these steps:

Step 1: Compare the balance sheet with reported records.

• Anchor the balance sheet back to the most recent audited financial statements or tax returns. Run the balance sheet in QuickBooks, for example, for the date of the most recent statements or returns and see if the numbers match.
• If they don’t match, make adjustments so the balance sheet agrees with the reported records. This alignment will give you a clean starting balance sheet in your accounting software.

Step 2: Clean up the balance sheet of the target period.

• Review every line to make sure assets and liabilities are correct.
• Make the appropriate corrections. You should now have a good beginning and ending balance sheet for the cleanup period, which ensures that the bottom line (i.e., net income, net earnings, or net profit) on the P&L statement for that period is accurate.

Step 3: Conduct a final review.

• Briefly review the specific income and expense buckets on the P&L statement for reasonableness.

In cleanup projects, it’s typically not cost-effective to focus on perfecting the income and expense buckets. Instead, it’s advisable to spend the majority of time cleaning up the beginning and ending balance sheets to ensure the bottom line is correct.

Hiring a Tax CPA

What is your approach to tax preparation and returns?

This answer will give you the opportunity to assess how comprehensive a candidate’s approach is. A good CPA will expect significant client interaction. They will electronically file your business tax returns and be comfortable with tax preparation software. (If CPAs are still filing paper returns, this may reflect an inability to keep up with technology.) After your tax work is complete, they will provide you with adjusting journal entries and a final (or post-closing) trial balance, as well as a tax worksheet, so you can ensure your books align with your filed tax returns.

Hiring a CPA to Serve As a CFO

How do your skill set and experience align with my company’s needs?

The response to this question gives you insight into a candidate’s honesty, which is a critical quality for the individual who will have access to your company’s sensitive financial information.

Each company’s needs are unique, and it’s impossible for an outside candidate to know what the business requires without having reviewed its confidential information. A candidate who acknowledges that they don’t have all the answers but elaborates on how they can solve problems and draw on past experience may be more trustworthy than one who claims to know exactly what you need right away.

Do you have experience with our company’s accounting software?

This follow-up question can be tailored to focus on any particular requirement you wish, but its goal is to further establish trustworthiness. Don’t accept a yes without asking for details. For instance, if you’re evaluating a candidate’s experience with Xero, ask for a specific number of clients and the time frame in which they completed the work. A candidate who struggles to provide these details may be embellishing their experience.

Remember, it’s better to find a top CPA who doesn’t have experience with your company’s software than a mediocre one who does. But in either case, the candidate must be honest. This type of question can help you discern the level of integrity a CPA possesses.

Why Do Companies Hire CPAs?

CPAs help companies get their financial house in order during every stage of growth, which is important for everything from operating a business properly to creating compelling metrics for investors. Whether it’s handling payroll, tax planning, and financial accounting, or advising on financial management, a complex tax situation, overall financial strategy, and long-term financial planning in the face of a murky financial outlook, these highly qualified accountants can help companies make informed decisions about their business finances.

Hiring an experienced CPA during a talent shortage may be challenging. However, looking carefully for the person with the right skills, experience, and approach can help business owners find the best candidate for their needs. The financial expertise and acumen of a strong CPA will be a valuable asset to your team, giving you greater confidence with the many financial decisions you will make.