Choosing the right CPA firm is a big deal, especially in a diverse state like Texas where businesses and personal finances can get pretty nuanced. Figuring out your actual needs first is the smartest way to avoid overpaying for services you don’t need—or, worse, missing out on crucial expertise.
Define Your Goals & Needs
Ask yourself:
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Do you need year-round advice or just annual tax preparation?
Is your situation simple (just taxes/bookkeeping), or do you have complex needs like business structure, real estate investments, payroll, or IRS representation?
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Do you require assurance services?
- Audit: Highest level—needed if you have investors, lenders, or regulatory bodies requiring a formal opinion on your financials.
- Review: Middle ground—provides some assurance, but less in-depth than an audit.
- Compilation: Lowest level—CPA assembles financials from your data, but provides no assurance.
Most people simply need tax preparation and strategic advice, not audits or reviews—these are usually for larger businesses or those with outside stakeholders. And, it’s important to choose the CPA tax services firm with experience in your industry or financial situation (real estate, small business, oil & gas, tech, etc.).
How to Verify a CPA’s Credentials in Texas
Texas State Board of Public Accountancy (TSBPA)
Every CPA practicing in Texas must be licensed by the TSBPA (Go to the TSBPA License Lookup.)
- Enter the CPA’s name. Make sure the name and license number match what they provided.
- Check for “active” status and look for any disciplinary actions (these will be noted on their record).
CPAverify
CPAverify.org is a national database of CPA licenses across many states. If your CPA is licensed in more than one state, or if you just want a double-check—this is the place. The info should match what you see on the TSBPA site, but always trust the state board as your primary source in Texas.
Why Do Professional Memberships Matter?
Memberships in bodies like the AICPA (American Institute of CPAs) or TSCPA (Texas Society of CPAs) show a commitment to high professional standards, continuing education, and a code of ethics. It’s not a legal requirement—plenty of great CPAs aren’t members—but it does signal they take their profession seriously and always stay up-to-date. Some memberships come with extra resources or standards for client care.
PTIN: Why Is It a Must for Tax Prep?
PTIN means Preparer Tax Identification Number—anyone who is paid to prepare federal tax returns must have a valid PTIN from the IRS.
Why would you insist on it? It’s a basic legal requirement. If someone prepares your tax return for money and doesn’t have a PTIN, that’s a red flag. A PTIN holder is registered with the IRS, so there’s some oversight and accountability. If there’s ever an issue with your return, the IRS can trace it back to the preparer via their PTIN.
Why Is Good Communication Style So Important?
Nobody misses a responsive, clear CPA…until they need help fast and can’t get it! A CPA who explains things in plain language and responds promptly can save you stress, money, and unpleasant surprises (like missed deadlines or misunderstood deductions). It’s far from “just nice”—it’s a big part of what makes a CPA valuable long-term.
Quick Checklist for Vetting a Texas CPA or Firm
- License check: Look up on TSBPA (and CPAverify for an extra layer).
- Name and license match: Confirm both exactly.
- Active status: Don’t settle for “inactive” or “expired.”
- Disciplinary history: Steer clear of anyone with serious or unresolved disciplinary actions.
- Professional memberships: Not required, but a nice bonus.
- Valid PTIN: Essential for anyone doing tax prep.
- Communication: Test it—ask questions, see how they respond.
- Client reviews: Google, Yelp, or referrals can give clues to their communication and reliability.
Coordinating Pricing & Service Levels: What’s the Deal?
CPAs Pricing Models
- Hourly: You pay for the time spent on your work. Good if your needs are unpredictable, but costs can add up fast.
- Per-form: Each tax form or schedule (like a rental property, business, or complex investment) has a set price. Useful for seeing exactly what you’re paying for.
- Fixed fee: A package price for everything agreed upon. Often the most reassuring for clients—no surprises.
- Value-based: The CPA charges based on the value they provide, not just time or forms. This can work well for big-picture planning, but make sure the “value” is clear to you.
How to make sure you get good service?
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Ask for a detailed quote: Get a breakdown of what’s included and what would be extra.
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Compare apples to apples: If you get quotes from several firms, make sure you’re comparing the same level of service.
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Ask about support: Will they answer questions year-round, or just during tax season? Are quick emails and calls included?
Engagement Letters
An engagement letter is like a roadmap for your relationship with the CPA.
- What services they’ll provide (and what’s not included)
- How and when you’ll pay
- Who’s responsible for what (e.g., you give info, they prepare returns)
- What happens if there’s a dispute
With an engagement letter, everyone’s on the same page. No surprises, no misunderstandings—just clarity. It also gives you a document to refer back to if there’s ever a problem. Think of it as a friendly handshake in writing.
Data Protection & Tech Stack: How Important Is It?
Super important! Your CPA will have sensitive info: SSNs, income, addresses, maybe even bank details.
What to check:
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How do they store your data? (Encrypted cloud storage? Locked cabinets?)
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How do they send/receive documents? (Secure portals are best—not just email!)
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What software do they use? (Top-tier firms use trusted, up-to-date tax software and secure client portals.)
Imagine a CPA who just emails you a blank PDF tax organizer and asks you to send your W-2s as attachments. Not great! A better firm will have a secure upload portal and explain how your info is protected. Modern tech also makes service faster and more accurate (e-filing, digital signatures, automated reminders).
Refund-Based Fees: Why Are They a Red Flag?
If a preparer charges a percentage of your refund, they have an incentive to “bend the rules” to boost your refund—which can lead to errors or even fraud. IRS and professional bodies warn against this model.
- It can encourage shady deductions or credits (which can come back to haunt you in an audit!).
- Legitimate pros should charge based on work, not your tax result.
Stick to fixed, hourly, or per-form fees—never a % of your refund. A good CPA isn’t just a number-cruncher—they’re a partner in your financial story. You deserve clarity, security, and respect at every step.
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