How to Choose an Accountant for Your Construction Business: 6 Red Flags

Most contractors don't switch accountants because of one bad return. They switch after a pattern: a bill that's higher than expected, emails that go unanswered, and the feeling that nobody is actually looking out for them. Here are six red flags to watch for, and what to look for instead.

1. You don't know the price until the bill arrives

Unclear pricing is the most common complaint about tax preparers. A simple return turns into a large invoice, with fees added for forms you didn't know you needed.

Look for: a flat price quoted before any work starts, in writing. If a firm can't tell you what it will cost after reviewing your situation, expect surprises.

2. You can't reach the person doing your taxes

Messages go into a shared inbox, a different person answers every time, or you hear nothing for weeks during tax season.

Look for: a named person who works on your file every year, and a clear answer to "how quickly do you usually reply?"

3. They only call you in April

Small business owners consistently say their biggest frustration is an accountant who reacts to problems instead of planning ahead. By April, most tax-saving moves are no longer possible: equipment timing, retirement contributions, entity choice and estimated payments all happen during the year.

Look for: quarterly check-ins, help with estimated payments, and someone who asks about your plans before December 31.

4. Mistakes, missed deadlines and penalties

Returns filed late, wrong forms, or penalties you only learn about from an IRS notice. And when the notice comes, the preparer can't help.

Look for: credentials. Enrolled Agents and CPAs can represent you before the IRS on any tax matter, including audits, notices and payment plans. Many seasonal preparers can't.

5. "We're full, you'll have to go on extension"

With fewer accountants available, many firms stop taking new clients in February or push newer, smaller clients onto extensions so they can finish their larger ones first. An extension gives you more time to file, but not more time to pay.

Look for: a firm that's actively taking clients like you, and ask early, ideally before January.

6. You're not sure they'll be around next year

When a bookkeeping or tax platform shuts down, customers can lose access to their records overnight. App-based services are convenient, but your financial history is too important to depend on a startup's funding.

Look for: a licensed, owner-operated firm, and a secure way to get copies of your documents and returns whenever you need them.

Questions to ask before you hire anyone

• What will this cost, and is that price fixed?
• Who will prepare my return, and what are their credentials?
• Can you represent me if the IRS sends a letter?
• Will we talk before year-end, or only at tax time?
• How do I send documents, and how do I get copies back?
• Do you work with other construction businesses?

How we work at Stratus Financial

We built our firm around these frustrations:

• Flat price quoted up front, before we start
• The same people every year, led by an IRS Enrolled Agent who can represent you before the IRS
• Quarterly check-ins so estimated payments and big decisions don't wait until April
• A secure client portal for your documents, instead of email attachments
• 100% remote, with video meetings whenever you need them
• We're taking new clients, including those who were turned away elsewhere