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Do you think your small business is too small to need an accountant? Perhaps you should think again. Consider the points here before you make your final decision.
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Every business has financial and legal responsibilities that require careful attention. Paying business taxes, preparing financial statements, and bookkeeping are some tasks any company needs to function properly.
Smaller businesses, especially new home-based enterprises, are often easier to manage. Most solo business owners often do all of the work themselves.
However, as your business grows, you’ll soon be spread thin between tasks. Hiring an accountant could help you delegate tasks better. This would free your time to focus on other priorities.
What an Accountant Can Do for You
Accountants offer their services across various industries. Their primary role is recording financial transactions systematically. This is essential for businesses.
Below are some tasks that an accountant could assist you with:
- Evaluating business performance
- Compliance with government regulations (business taxes, payroll, and so on)
- Creating budgets
- Creating financial forecasts
- Completing and filing financial statements and the like
Tips for Finding a Business Accountant
A quick Google search of accountants and firms in your area could give you dozens of results. However, while having a wealth of options can be helpful, it may also be overwhelming.
Here are some tips to help you filter your options and hire the best CPA or bookkeeper for your business.
Know What You Need in an Accountant
Before seeking an accountant, it’s essential to understand your business needs first. This is because there are different types of accountants with varying skill levels suited for specific tasks.
For example, if you only need help with everyday accounting tasks, you can hire a bookkeeper or a non-certified accountant.
However, more complex tasks need more experience and certifications. In these cases, a chartered professional accountant (CPA) would better suit your needs. This is an accountant you can give you advice or assistance in filing taxes or government audits.
There are a lot of accountants and accounting firms currently offering their services. For this reason, it can be difficult to narrow down your choices.
Therefore, when searching for a business accountant, it’s a good idea to start by asking around in your personal networks. Some of your colleagues, employees, and peers may already have experience working with accountants in your area.
Listening to others can also give you an idea of what it would be like to work with particular accountants. In this way, you can get a sense of their strengths and weaknesses to inform your final decision better.
Evaluate Each Candidate’s Qualifications
A vital factor to consider when narrowing down your prospects is each candidate’s qualifications. Basically, your evaluation will depend on your company’s accounting needs.
Bookkeepers who handle financial clerical and administrative tasks must be accurate and detail-oriented. Accounting degrees aren’t a requirement as long as they can do the job. However, relevant education and experience are a plus, especially if you need a top-notch accountant.
CPAs, on the other hand, have more requirements. Aside from a recognized university degree, they must complete the CPA Professional Education Program.
After a period of practical experience, all CPA candidates must pass the Common Final Examination. Only then can they earn the CPA title.
Interview Your Prospects
After evaluating qualifications, an interview is necessary to help you make your final decision. This is because meeting and speaking with your prospects can give you a better sense of your possible working relationship.
Here are some questions you could ask as you interview candidates who wish to be your accountant:
- What services do you offer?
- What are your rates?
- Who are your usual clients?
- Do you have experience working with clients in my industry?
- How could you help my business?
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Accountants are a valuable resource for any growing business. Due to the nature of their work, taking them on will incur additional costs. Nonetheless, it’s essential to evaluate your needs and scrutinize your choices to ensure that you make the right hiring decisions.
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