Friday, November 24, 2017

4 Fundamentals for Choosing Your Small Business Accountant



Today, running finances is complicated even for small businesses, which is why most business owners opt to hire professionals who can handle this for them. A good accountant can easily help your business grow, while a bad one will probably cost you money on multiple levels. 

This is why it's important to make the right choice when hiring an accountant. With an experienced accountant by your side, you'll have actionable advice when it comes to finances and financial decision making

Finding the right accountant also depends on what you're actually looking for. So, without further delay, let us show you what you should be asking yourself (and a potential employee) when hiring a new accountant.


Evaluate Before Hiring


It's vital that you run a background check and actually follow up on client references when you're hiring an accountant. Trust me, you don't want any surprises with this, as shady accountants can really cost your business a lot if IRS comes knocking. 

After you're satisfied with these results, you'll have to schedule a face to face meeting with a potential employee. It's best to hire someone that you feel comfortable around since you'll be dealing with them all the time, whether it's about tax implications or potential business dealings. 

There's also a huge difference between an accountant that gives proactive advice and the one that only brings reactive service to the table.


Is your Potential Accountant a Problem-Solver?


Problem-solving is probably one of the most important skills (if we can call it that way) an employee can have. If your accountant can't manage their time and find viable solutions within a certain timeframe, you're better off without one. 





Even if someone lacks experience but is a problem solver in nature, we believe that it's still better than someone who just can't handle certain situations. Money doesn't grow on trees, and it's especially important for small businesses to keep track of every penny if they're looking to hit the next stage of growth. 

It's also a good idea to hire someone who can actually spot the problems before it's too late.

Look at It as an Investment


Accountants will always cost you money, whether they are CPA (Certified Public Accountant) or not. But a good accountant will actually be saving you money, which is why you'll always want to look at it as an investment. 

You're paying for a service and you expect it to pay off. Some accountants will clearly be more expensive than others, but they might be offering a wider array of services as well. 

This is why you should always ask your potential accountant about all the services that they'll be able to do and get an estimate of the annual charges that you'll have to pay. Be very upfront when talking about the fees, as that's the only way to make sure you know what you're getting into.

What Do You Need an Accountant For?


Let's say that you're doing your own bookkeeping duties. In this case, you don't need a full-time accountant at all, but rather one that's going to evaluate the financial health of your business and perform certain tasks on a weekly or monthly basis. 

If you need more out of your accountant, it's recommended to take one full-time. This is especially true if your business needs an accountant to set up the structuring of your business so that it's able to operate in a cost-effective manner. 

This is also why professionals like Fullstack accounting services recommend hiring an accountant you can rely on, with a perfect background.

Conclusion


Once you do hire an accountant, the adventure is just beginning! Make sure you have regular meetings with your accountant, at least once per month, to review financial statements and any potential problems that might occur. 

If your accountant doesn't report any problems at all, it might be a red-flag for you already, as there's always something that's not going right when it comes to finances. You'll also want to review your accountant's performance often since that's the only way to know where you stand. 

If you make the right choice, you might be in for a long and healthy partnership.


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