Tax & Financial Benefits
How to Choose a Farm Accountant
The right accountant can save a farm thousands of dollars a year. Here's what to look for, how to check credentials, and where to find someone who knows agriculture.
1Find someone who knows farm taxes
Farm taxes have their own rules: Schedule F, depreciation on equipment and breeding livestock, farm income averaging, the ST-125 sales tax exemption, New York's farm credits, and agricultural assessments. A preparer who mostly handles W-2 returns can miss a lot.
How many farm clients do you have, and what kinds of farms?
2Check their credentials
Anyone can call themselves a tax preparer. These free lookups show who is actually licensed or credentialed.
CPA
A Certified Public Accountant is licensed by New York State. A good fit for tax planning, business structure questions, and larger or more complex farms. Search a CPA by name to confirm an active license.
Verify a NY licenseEnrolled Agent (EA)
Licensed by the IRS and focused on taxes. Often a good value for small and mid-size farms, and able to represent you if the IRS has questions.
IRS PTIN
Every paid preparer needs a Preparer Tax Identification Number and must put it on your return. The IRS directory lists preparers who have a PTIN plus a credential. Preparers with only a PTIN aren't listed, so ask them for it.
Search the IRS directoryAbout the IRS directory: who is and isn't listed.
3Questions to ask before you hire
A short conversation up front tells you a lot about how they'll work with you.
- Do you help with tax planning during the year, or only filing? Big equipment purchases should be timed with your accountant's advice, not after the fact.
- Have you worked with FSA loans or USDA programs? Lenders often ask for specific financial statements.
- How do you charge, flat fee or hourly? What does a typical return for a farm my size cost?
- What records do you want from me, and in what format?
- Who do I talk to if I get a letter from the IRS or the state?
- Can you help me decide on a business structure, like a sole proprietorship, DBA, or LLC?
4Where to find a farm accountant in New York
Start with people who already work with farmers.
Farm Credit East
Farm tax planning and preparation, plus bookkeeping built for farms, from the farmer-owned lender.
Cornell Cooperative Extension
Your county office often knows the local accountants who work with farmers, and some offices run record-keeping and tax workshops.
Find your county officeOther farmers
One of the best sources there is. Ask neighbors, your farmers market, or other FVC NY members who does their taxes and whether they're happy.
Ask FVC NY5Red flags
- They promise a specific refund before seeing your records.
- They won't sign the return as the preparer or give you their PTIN.
- They don't ask about your farm operation at all.
- They charge based on the size of your refund.
A good farm accountant usually pays for themselves in deductions and planning, so it's worth choosing carefully, especially in your first few years. The IRS has a short guide worth reading too.
This page shares general information, not tax or legal advice. FVC NY does not endorse any specific accountant or firm.
