Updated Checked by the Tax-Services.ca editorial team How we check
To check references for an accountant in Canada, phone two or three current clients in a business like yours and ask about deadlines, not personality. Did every filing go in on time? A late T2 costs 5% of the unpaid tax plus 1% for each full month, up to 12 months, so a missed date has a price.
Who should you ask for as a reference?
Ask for clients who’ve been with the accountant for at least two filing years, and who run something like your business. A glowing reference from a sole proprietor with one client tells you little if you run a corporation with staff.
Also ask whether you can speak to a former client. Most firms won’t have one to offer, and that’s fine. But if a firm has none at all, it may be new, or it may be losing clients, and it’s fair to ask which.
One more tip: don’t only call the names on the firm’s short list. Ask the accountant for a client who changed from another firm, since that person has seen both sides.
What questions are worth asking?
Keep the calls short, ten minutes at most. Five questions cover it.
- Have all your returns and slips been filed on time, every year?
- Did the accountant ever find a mistake in your books, and how was it handled?
- How long do emails and calls take to get an answer, in a busy month?
- Were there any surprises on the final bill compared with the quote?
- Would you hire them again?
The last question is blunt, and the pause before the answer is usually the answer.
Why do deadlines make the best reference question?
Because deadlines are checkable and expensive. The T2 return is due six months after your tax year ends, and the tax owing is due earlier: two months after year end, or three for a qualifying Canadian-controlled private corporation. Late filing brings the 5% plus 1% per month penalty, which the CRA spells out on its page on avoiding corporate penalties. If the CRA had already assessed a late-filing penalty in any of the three previous years and demanded the return, the rate doubles to 10% plus 2% per month, for up to 20 months.
Take a corporation with $10,000 of tax unpaid on the due date that files six full months late. The first-time penalty is 5% plus 6%, so 11%, or $1,100. That’s before interest. Ask each reference whether they’ve ever paid a penalty like it because of the accountant’s timing.
How can you check what references don’t tell you?
Check the credentials with the provincial CPA body if the accountant claims the designation. Directories exist at least in Ontario, and other provinces run their own bodies. Our guide to accountant credentials for a small business explains what to look for.
Then test their thinking. Bring one number to a first meeting. For instance, $100,000 of active business income in Ontario comes to about $11,700 of tax at the small business rate on the corporate tax calculator. Ask the accountant to explain what would change it. Ontario cut its small business rate partway through 2026, so the calculator uses a blend and a small gap is normal. A big gap deserves a question.
Your own numbers also help. The self-employed tax calculator or the marginal tax rate calculator shows how deductions might play out, and you’ll spot a vague answer faster.
What should you do after the calls?
Line up what you heard. If two out of three references mention slow replies in March or April, believe them. Then ask the accountant about it directly, and see whether you get a straight answer or a shrug.
Before you sign, ask for the engagement letter in writing. It should say what’s included, who does the work and how fees are billed. Sam in Calgary, say, ran a small landscaping company and skipped this step. He found out in April that year-end bookkeeping cleanup was billed on top of the return.
Mistakes when checking references
Don’t rely on online reviews alone. It’s hard to tell how a review site checks its ratings, and a firm’s own page will show only the good ones. Don’t accept “they’re great” either. Push for a date, a filing or a problem.
And don’t skip the engagement letter. A reference can’t tell you what’s in scope for your file. Fee levels vary a lot, so compare written quotes from two or three firms rather than guessing at a going rate.
How we checked the figures
Filing dates, balance-due days and late-filing penalties come from Canada Revenue Agency pages for corporations, read in October 2026. Corporate tax rates come from the CRA, and the Ontario 2026 small business blend is a derived figure. Provincial CPA directories are named as an example only. No level of government runs or endorses this site.
Frequently asked questions
How many references should I ask an accountant for?
Two or three current clients in a business like yours is enough. Ask about deadlines, surprises on the bill and how fast they reply.
What's the penalty for a late corporate return?
5% of the unpaid tax plus 1% for each full month late, up to 12 months. A repeat offender can face 10% plus 2% a month.
Can I verify an accountant's CPA designation?
Yes, through the provincial CPA body. CPA Ontario publishes public directories, and other provinces run their own.
Are online reviews reliable for choosing an accountant?
We couldn't confirm how review sites check their ratings, so use them as a starting point and still call references.
Should I ask an accountant about their fees when I check references?
Ask, but we couldn't confirm typical prices. Get a written quote with the scope.
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