If it works correctly on an old-school TTY with a printer and a roll of paper, you're pretty much done. That's how you should view a terminal screen reader, except it talks instead of printing.
Using it with a non-monospaced font would probably be a good test too. Monospace makes some implicit assumptions (i.e. being able to see how things are aligned) which screen readers don't follow. Also avoid preceding important messages with long strings of text, in particular containing numbers, i.e. overly detailed timestamps in logs. A screen reader reads text line by line, so those usually make using the app less efficient.
If you want an actual user interface, not merely a command prompt, avoid the terminal like the plague. Exposing a simple web frontend might be a good idea here.
Using it with a non-monospaced font would probably be a good test too. Monospace makes some implicit assumptions (i.e. being able to see how things are aligned) which screen readers don't follow. Also avoid preceding important messages with long strings of text, in particular containing numbers, i.e. overly detailed timestamps in logs. A screen reader reads text line by line, so those usually make using the app less efficient.
If you want an actual user interface, not merely a command prompt, avoid the terminal like the plague. Exposing a simple web frontend might be a good idea here.