The Small Business Times

5 Things You Need To Know Before Hiring Accountant For Your Small Business

When you’re ready to hire an outside professional for your small business, it’s important that the person has not only knowledge but also integrity. Here are some things worth considering before entrusting them with such sensitive information:

1. Which Industries Are Your Areas of Expertise?

There is no one size fits all company. The same is true for accountants. Your company operates in a specialized industry and has particular billing, bookkeeping, and accounting needs.

Your books will be entirely different if you are running an e-commerce company and if you’re a medical provider charging insurance. Nuanced knowledge is something you don’t want to overlook when looking for a new business accountant.

When you are looking for someone with the right skill set, it is important that they have experience in your type of business. Make sure to find a tax accountant who knows how to navigate through them accordingly!

2. How Would You Describe Your Business Model?

Some bookkeeping and accounting companies may bill you for each minute you spend speaking with them on the phone or in person. But there is also a new business strategy where companies give you unrestricted access to accountants for inquiries and consultations or even set you up with a membership.

Some people may find it advantageous to hire someone who bills by the hour because they only need them occasionally. Others find that having open lines of communication without the worry of taking 15 minutes of billable time to answer a 15-second question is much more cost-effective.

It’s vital you are clear about what you want from the beginning so your business can thrive. A good way for new entrepreneurs is to work with a mentor or a helper. This arrangement normally requires a monthly retainer rather than hourly rates.

3. What Kinds of Accounting Services Do You Offer?

Sometimes it’s a good idea to have multiple sets of eyes on your books. Using one company for bookkeeping and another for tax preparation can work out well, but most times, things just get more complicated instead!

The ability of a company to provide cohesive service is an important factor in deciding whether or not they are the right fit for your business. If a certain candidate can only do bookkeeping, but you also need help with taxes and audits, there may be better options out there that can meet all of your requirements. 

Some accountants work alone, but many companies have departments that specialize in different aspects of your finances. This is beneficial because it allows the company to provide you with assistance tailored to your needs. 

4. Are You a One-man Team or a Multi-level Company?

Since it is hard for one person to cover everything properly, you should ask your future business accountant whether they work alone or they have a team of people? Is the personnel well-versed in your industry, or do they specialize in a specific service?

Make sure you know the background of your tax accountant so you can be sure that they will provide good service. If an organization has departments for tax planning, bookkeeping, and preparation, as well as people who specialize in each individual service, then there’s no way any one person could offer you a better service package.

In order to create a realistic growth plan, your accountant also needs expertise in budgeting. Make sure you ask the right questions in order to understand how your small business accountant will help you create a plan that’s realistic and sustainable.

Your financial advisor should also be able to provide you with invaluable insight into how your company operates, which is essential for developing an accurate growth trajectory.

Essentially, it’s important to find a CPA who specializes in all areas of your small business. Therefore, they should be able to answer most financial questions you have.

5. Do You Provide Both Consulting and Regulatory Services?

Interviewing a potential firm is essential to understanding its capacity. Firms should be able and willing to help you with not only compliance advice but also strategies for maximizing your tax return, which is a service you will need, especially as your business continues growing. 

Additionally, introducing new software to your company can be an excellent way for you and the whole team to save time. This is something most accounting companies can help you with today, so make sure you add that question to the mix as well. 

Employ an Accountant To Help You Get Back to Business

We understand you’re trying to run a business and probably can’t keep up with the bookkeeping and tax paperwork on top of everything else. Relax, we’ve got this! Our tax accountants know how to take care of all your financial needs so you can focus on what you’re good at – running your business.

You’ll get regular updates on your finances, so you’ll always be in the loop. Plus, our team is available whenever you have questions or need help with anything. Let us take the complexities of accounting off your shoulders so you can breathe easy and focus on what’s important – making money!

Contact us for a consultation today and see how we can help your business grow!