Introduction
Incorporated professionals often choose their CPA through personal referral or proximity rather than deliberate evaluation of whether the CPA has the specific expertise their situation requires. A CPA who excels at personal tax returns or small business accounting may not have experience with professional corporations, OHIP billing structures, HST in exempt-supply practices, or the passive income threshold management that becomes relevant as a practice grows.
This article explains what to look for — and what to ask.
The Distinction Between Compliance and Planning
The most fundamental question is whether a CPA engagement provides compliance only or planning plus compliance. Compliance — filing the T2, preparing the T1, remitting HST — is a minimum baseline. Planning — salary vs. dividend analysis, RRSP strategy, passive income management, holdco timing, compensation modelling — is where the value is created.
A CPA who files the T2 accurately but never initiates a conversation about compensation structure, passive income risk, or year-end planning is providing compliance. An incorporated professional at $300,000 of income who has only ever had compliance service is likely leaving $10,000–$20,000 per year in planning value on the table.
Specific Experience to Look For
Professional corporation structure: Has the CPA worked with professional corporations in your specific profession — medical, dental, legal, architectural? Each has regulatory nuances (CPSO share restrictions, LSO professional corporation rules, RCDSO requirements) that a general small business CPA may not know.
HST in mixed-supply practices: A CPA advising a dental practice or a medical clinic must understand the exempt supply rules for clinical services vs. taxable non-insured services. A CPA who does not know the difference between an exempt and a taxable supply in a healthcare context cannot correctly manage the HST position.
Multi-entity structure: For professionals approaching or exceeding the passive income threshold, the holdco conversation is not optional. A CPA who has never set up or managed a two-entity operating/holdco structure may not have the experience to guide this transition correctly.
Proactive communication: The best indicator of a planning-oriented CPA is whether they contact you before year end — not whether they file the returns on time after year end.
Questions to Ask in a First Conversation
"What is the optimal salary vs. dividend mix for my income level, and how do you approach that decision?"
"At what point do you recommend establishing a holding company, and what does that structure look like?"
"How do you manage the passive income threshold for clients approaching it?"
"Do you have clients in my specific profession, and what are the most common tax issues they face?"
"When do you typically initiate the year-end planning conversation?"
A CPA who answers these questions fluently and proactively — rather than promising to "get back to you" — has demonstrated familiarity with the planning landscape for incorporated professionals.
Red Flags
A CPA who:
• Has never heard of the AAII threshold or RDTOH
• Does not ask about your spouse's income or personal investment accounts when doing compensation planning
• Only contacts you to file the return, never to plan
• Cannot explain the difference between eligible and non-eligible dividends
• Has never discussed holdco structure with you at an income level where it is relevant
...is providing compliance, not planning.