There are many aspects of your business that you can easily handle on your own. However, some might be better to outsource. One of those areas? Accounting. It’s so much more than simply sending invoices and tracking expenses. A good accountant can help you with cash flow and will be a huge help with the ins and out of your taxes. Are you looking to hire an accountant? Here’s what you need to know.
Understand your needs
Before you dive into hiring, you need to have a clear understanding of what you truly need. There are accountants, bookkeepers, and Certified Public Accountants. Each provides slightly different services and specializes in specific areas.
For example, bookkeepers set up and manage your accounting software as well as enter receipts and invoices. They can also handle payroll, quarterly taxes, and financial statements. If your needs are simple and do not involve help with tax returns, a bookkeeper may be for you.
An accountant takes on more of the day-to-day needs of your business as far as bookkeeping goes. They can do everything a bookkeeper can, plus handle your business taxes. You will pay more for an accountant as they have a wider skillset and are more knowledgeable on the business tax side of things.
Certified Public Accountants (CPAs) are the cream of the crop. They have completed state exams that warrant the special certifications they have. As a result, they are well-equipped to handle all aspects of finances relative to your business. Because of this, they will be your most expensive option.
Narrow your choices down
Ideally, the accountant or bookkeeper you choose will have experience with businesses your size in the industry in which you work. You also want an accountant who has some level of patience and can explain things. They may be using terms that you’re not familiar with, such as depreciation, chart of accounts, and cost of goods sold. Even though you are hiring a professional to handle the work for you, you still want to understand your finances.
Getting some suggestions from your colleagues is a great idea as well. Check with others in your area to see who they are using. Word of mouth is a great indicator of any service’s successes or failures. Go with someone who has a great reputation locally.
Ask a few questions. Here are a few things to ask accountants on your list:
- What software do you use?
- What is your hourly rate?
- What bookkeeping services do you provide?
- Do you work onsite?
- Can you provide references?
- What industries do you specialize in?
- What taxes can you do?
At the end of the day, you want to find an accountant you can trust. You want an accountant who has the best interests of you and your business in mind. Don’t overlook just how important this selection is. The time you invest now in making the right choice will pay off in the long run.
