Hiring an accountant is as important as making a deal with a new business partner.
Read these tips for understanding the challenges you may encounter when selecting the right accounting services.
Our top advice for selecting the best accountant for your needs
You will need to ensure you have considered certain aspects, such as your accountant’s location, the degree of your tax obligation, and the accounting software you’ll use. Also, you will want to know how much you’ll have to pay for their services and whether or not they can help offset your business income tax.
It’s in your firm’s best interest to select a skilled, experienced individual to manage one of the most critical areas of your firm – your money. You’ll continually save time and money if you hire the proper person. So be sure you keep this in mind in your search to find the right accountant for your company’s needs:
First, does location impact your choice?
It used to be essential to have your accountant close by, but now, more companies are utilizing web-based administration, reducing location’s significance. A cloud-based solution helps you and your accountant view real-time accounts everywhere.
For example, if your primary communication channel is email, phone call, video conference, or secure accounting software, and you can work well from anywhere in the world, then location doesn’t matter. You could select any accounting firm that knows the details of your business or industry.
Find a certified or chartered accounting service
The following accounting tasks are the most important financial activities you will need an accounting firm for:
- Preparation of tax returns
- Composing financial statements, such as the balance sheet, income statement, and cash flow statement
- Analysis or suggestions for resolving specific economic issues
There are professional organizations dedicated to upholding high accounting standards in many nations. Accountants can be Chartered Accountants or Certified Public Accountants based on their country. Accountants (CAIs) are qualified professionals with advanced training and on-the-job expertise.
A chartered accountant’s more significant experience and know-how can add value to your company in the initial stages of building your business. Also, if you anticipate your company to grow, using a certified or chartered accountant from the start is generally recommended instead of later on.
Although tasks such as bookkeeping, tax preparation, and general financial management may not require a certified, chartered, or registered accountant, employing such accounting services may prove to be a wrong business move.ž
Look for an accountant with experience in your line of work
In addition to certifications, look for some experience in your chosen industry — or a similar industry. For example, you’ll most likely require a person with helpful knowledge in creating tax returns and financial records for businesses of comparable revenue and size to your company.
How comfortable are you working on a large or small scale?
When deciding which accounting firm to hire, size does matter. The firm’s size will determine the type and quality of services it can provide. For example, a small accounting firm might not have the resources to offer auditing services, while a large firm might have a team of specialists who can provide a wide range of services.
Also, larger companies with decades of experience in accounting, like profitwiseaccounting.com have more departments specializing in specific industries. In addition, they’re familiar with the unique financial needs of your business, and they can help you predict all possible problems that your competition is unaware of.
In case you are a professional contractor, we would recommend you disregard the greater-revenue accountants. Usually, profit is their top motivation, so they do not tend to your every need and are not as personal as small businesses are.
Communication is key
From our own observation, we have found that the most significant issues involved with accountants concern a lack of communication. Correctly completing tax forms and waiting for days ahead of a response to a tax request is both frustrating for business owners.
So don’t simply choose the first accountant you discover. Arrange things in a way that will allow you to compare a number of accountants with one another, making it easier to discover the best for your firm.
An interview can also be an efficient means to gauge how well you’ll collaborate with an accounting professional. A series of interviews with carefully selected questions will help enumerate the kind of accountant you need, as well as collect information that will allow you to better identify your company’s needs.
Discuss fees right from the start
As one small business owner, you should already be aware of and possess the ability to negotiate prices. If you’re not, do everything in your power to learn it.
Accountants don’t typically utilize a single system to charge for their services. Some will charge an hourly rate, some will charge a retainer, and some will charge a percentage of the organization’s revenue.
Get written quotes from each accountant you meet, and then go over them thoroughly. Think about various alternatives: one pricing structure might be reasonable if your company operates on a small scale, but it’s going to lose its effect as it becomes more popular.
It’s fine to inquire about the possibility of a mix of price scales, sliding-scale pricing, or any other arbitration formula that depends on the amount of money your company makes. The bottom line is that you won’t know for sure until you ask.
Get recommendations from another business owner
Last but not least, ask your other business contacts if they recommend their own accountants. You simply cannot beat a recommendation from an individual you may trust. Requesting feedback from other small business owners is a wise strategy
Final thoughts
By performing complex financial accounting and providing professional advice on current business practices, competent accountants assist in the growth of companies. Saving time and money is possible by choosing the right accountant, and you will be perfect for the chosen one and only in the years ahead. You cannot go wrong if you receive guidance from the perfect person.
