CHOOSING AN ACCOUNTING PROFESSIONAL FOR YOUR SMALL BUSINESS

Every business needs an accountant. Small startups are usually run by one person who has great ideas but needs help executing them. It’s important to get a quality team together at the beginning to support the business and set it up for success. A savvy business owner understands that investing in quality accounting services will provide a good return, boosting the business to the next level.

You may be tempted to do everything yourself. If you have any kind of business training, or are an organized person generally, this might be acceptable. But if the business is growing fast and you are spending all your time serving your customers, the needs of YOUR business may be neglected.

Serving your clients, or creating your products, should be a priority. However if you aren’t generating invoices, then cash isn’t coming in. If you don’t have time to review the vendor bills, and wonder if you have the cash in your account to cover your expenses, you may damage your relationship with your vendors.

The firm or individual you choose should care that your business grows and succeeds.  Hiring the right accountant from the start can make a huge difference. The following tips will help you choose the professional that is the best fit for your business.

  1. Don’t think you can’t afford it. Depending on the size of your business, and the amount of work you are willing to do yourself, initial bookkeeping setups can be as low as a few hundred dollars. A CPA or bookkeeper’s office should be happy to take your call and answer a few questions free of charge. This should at least lead to action steps you can take on your own if you choose to do so.
  2. Don’t make cost the primary decision maker. Cheaper isn’t always better. You may be tempted to hire the least expensive professional you can, but that can be a huge mistake. The fees may be low because the service isn’t top quality. The accountant you choose should be considered a partner in your business success. They should be interested enough in your business to ask questions to understand it, and offer tax planning and perhaps marketing tips to help you succeed.
  3. Be sure you have a thorough understanding of the fee. Make sure your accountant clearly states what they will do for you and how much it will cost. If you feel the fee exceeds your budget, ask if you can do some of the work yourself.  If your accountant advises against it, ask them why. They should be looking out for your best interests, regardless of the fee.
  4. Ask if there are any fee discounts. Accounting and tax preparation is largely a referral based business, and some professionals offer referral discounts. For example if you refer a friend to your accountant and that person or business becomes a client, the accountant may give you a partially discounted fee.
  5. Don’t be shy to question anything you don’t understand. While your accountant is a professional and isn’t in the business of teaching you to become one, it is still important to understand the work that’s being done. A good accountant is happy to answer all questions and explain their work.

You should demand top quality service from any accountant you choose. Your phone calls and emails should be answered promptly. All questions should be answered to your satisfaction. Even if your accountant only does work for you annually (such as prepare your tax return) they should check in with you at least every few months to see how things are going.

During the year, tax laws may change.  You will want to know if these changes affect your business. If they do, it is crucial to have time to do something about it before year end. It is the job of the professional you hire to keep up with changes in the financial and regulatory landscape, so you can focus on running your business.

 

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