CPA stands for Certified Public Accountant. This meaning carries a little extra weight than a regular accountant: CPAs are members of the American Institute of Public Accountants.

CPA status means that the professional has completed specialized training, licensing, and a year of working experience under supervision of a more experienced expert.

Even though the terms are sometimes interchanged, there are a few differences between a CPA and an accountant. First, all CPAs are accountants, but not all accountants are CPAs.

A CPA has met state-specific standards in licensing above that of an accountant.

They’ve passed a CPA exam, taken 150 hours of relevant college coursework, and have a set amount of professional experience.

To maintain their CPA license, they also must take continuing education classes throughout their career.

CPA firms specializing in real estate are allowed to provide fiduciary services. This is a requirement for certain types of services such as financial statement audit.

Accountants who don’t hold the CPA status can’t be fiduciaries.

During a tax audit, a CPA real estate specialist will communicate with the IRS on your behalf, while a non-CPA accountant will not be allowed by law to do this.

In general, CPAs are considered to be more knowledgeable about any aspects of taxation,
bookkeeping, and accounting than regular accountants.

When your business involves tax saving strategies or a large number of complex transactions, you need a CPA with real estate experience.

This is especially important for investment companies whose work involves risking large amounts of capital — they need a CPA specializing in real estate investment.

Although both accountants and CPAs can prepare tax returns, CPAs for real estate agents and investors often have more knowledge related to relevant tax codes.

Lastly, CPAs are often held to a strict code of ethics which ensures they meet the highest standards of the profession.

First of all, if you specifically need a CPA, make sure they are properly licensed and their certification is up to date.

If you focus on commercial property, look for a commercial real estate accountant or a CPA experienced in commercial real estate. Ask them what kind of companies they have served.

Make sure any potential candidate has worked with other real estate firms, like yours, in the past, to ensure they really understand the specifics of your business.

Your questions should revolve around specific examples of services you need.

If you require someone to develop a real estate investment tax strategy, ask them which strategies they’ve used for their clients.

The best CPA for real estate investors must be knowledgeable about 1031 exchanges, opportunity zones, offsetting capital gains with losses etc.

You may need a professional real estate bookkeeping firm able to keep up with a large number of complex transactions.

Make sure the one you are interviewing will be able to handle the required volume.

Extra questions can include general information such as their rates and years in business.

There’s no single average price for real estate CPA or accountant work since most fees vary by service and location. However, you can expect to pay within certain ranges.

For example:
- Tax preparation services range between $1,000-$2,500 based on complexity and size of your firm.
- Bookkeeping fees for landlords average out at about $200 per month per small or mid-sized property.
- For CFO-level services, the average hourly cost starts at $180 and can be larger.
- If requesting an audit, average fees are around $550 per $1 million in revenue.
- The average rate for advisory services is about $160 per hour.

Finding the right accounting and advisory services for the real estate industry means looking at both accountants and CPAs.

The search may yield a lot of results, so it’s important to have specific criteria in mind to ensure the right hire.

You want someone professional, with real estate experience, and a proven track record, so start with colleague referrals.

Talking to real estate accounting firms with whom someone has already had a good experience, makes the process easier.

If referrals aren’t possible, resist the urge to do a blind search online. You’ll get too many results to filter through.

Instead, start with our vetted list of top-rated accountants for real estate agents and other real estate-related businesses.

Our directory gives you a reliable list of qualified local professionals to reach out to, so you don’t have to second-guess any candidates.

When your real estate firm needs CPA firms specializing in real estate or just a qualified real estate accountant, we’ve got your back.