What to Consider When Hiring a Small Business Accountant

8 Things to Consider When Hiring a Small Business Accountant

Have you decided that it is time to hire a small business accountant to help with the financial tracking for your company? It might be a big step to bring in a financial professional. But, this decision is an important decision to move your business forward in a positive way. Managing the financial records will set the foundation that is needed for success in the upcoming years.

DIY accounting is one of the biggest mistakes that can be made for a start-up or small business. Even though it might seem simple to track transactions and income, the truth is that important details are often overlooked along the way. Instead of trying to save money by handling the accounting and bookkeeping in-house, it is better to spend the cash on a professional team to help. In fact, it is likely that you will save more money because of the tax write-offs and other financial benefits that come from an experienced accounting team.

If you want to move forward towards financial success, then you need to have an accountant that you can trust. Follow these important tips to help you choose the right small business accountant:

1. How Much Experience Do They Have in the Industry?

Not only do you need to consider the length of time that they’ve been working in the industry, but you also need to think about the type of experience they bring to the table. Just because someone has been working in finance for many years, doesn’t mean that they have the understanding to navigate tax laws that relate to small businesses.

Your best bet is to choose an accounting team that specializes in the types of services that you need. For example, if you are launching a start-up, look for accounting services focused on small businesses, instead of hiring a big, corporate accounting team.

2. Does Your Accountant Have the Right Education and Accreditation?

Anyone can say that they are a financial professional. But, knowing how to do data entry in an accounting software isn’t the same thing as analyzing reports and putting together a financial strategy. Ask your new accountant about the education they gained to be qualified for the position.

Knowing information about their education and experience is a great way to ensure that they have the skill set the is needed to boost the success of your company. You need to hire someone that is familiar with all types of bookkeeping systems and is willing to learn more about the nuances of your company.

3. How Often Can You Ask Questions?

Some accounting services only offer communication once or twice a year. You talk to your accountant at tax time, and then the conversation is over until the next tax season. While it is important to have an accountant who can help with taxes, you shouldn’t overlook the benefit of ongoing accounting and bookkeeping services to help your company throughout the year.

The best solution is to choose an accounting team that is always available to answer your questions. Ongoing support will make a big difference to your tax strategy, helping to minimize the amount of money that you need to pay in taxes.

4. Is the Accountant Honest and Trustworthy?

When you are handing over the financial information for your company, you need to make sure that you have a team that you can trust. Never provide password information for your financial system unless you know that you are working with a reputable team.

There are many scams in the business world, with thieves who are just trying to gain access to your bank accounts. So, it is important that you do your homework to learn more about the company that you are planning to hire. Research the business, look for online reviews, and ask around to make sure that you are picking a reputable team to help with your bookkeeping and accounting.

One way that you can determine the reputation of the company is by asking for references from other clients. Testimonials and reviews can shed light on the quality of service that you can expect if you hire the accounting team.

5. Will You Receive Reliable Services?

Ongoing accountant and bookkeeping services are essential so that you can stay ahead of the cash flow for your company. If you hire someone that procrastinates the work, then you will likely be facing a messy financial situation in the future. A better solution is to hire a team with a proven system in place.

The ongoing services depend on the needs of your company. You should have a consultation with the accounting team to discuss the services that are necessary. Then, a schedule can be designed to match your preferences. This schedule should include all of the important aspects of financial tracking, such as data entry, reconciliations, payroll processing, tax payments, tax filing, and more.

Reliability is also important to give you access when questions come up. Will you be able to get on the phone with your accounting team if you have questions about a financial situation? Reliability is not only consistency with the tasks that need to be completed. It also means that your accountant will respond when you contact the team for more information.

6. How Much Transparency Will Be in the Reporting?

If a mistake is made along the way, it is important that you have transparency in the reporting to identify the problems. Accuracy is one of the most important aspects of an effective accounting system. So, you need to make sure that you have the information readily available at any time.

Transparency means that you will be able to see the work that is being completed. You can also pull financial reports to understand the current cash flow standing of your company. Plus, the accountant will be available to explain the reporting and transactions so that you can be sure that everything is on track for the future.

This openness for communication is essential so that you have all of the information that is needed for the financial health of your company.

7. Do You Have Credit and Cash Flow Management Strategies to Use?

Instead of just tracking the transactions that move through the company, your accounting team also needs to look at the strategy that will impact the financial health of your business. Most companies have credit cards and lines of credit that are used to keep the business going. Debt can be an effective way to push through slower times. But, these balances can quickly get out of hand, making it hard to get on top of the cash flow once again.

Instead of spending a lot of money on business debt, you should talk to your accounting team to look for solutions to minimize spending and pay down the balances. These strategies will contribute to the financial health of your company. Not only will you be able to manage your cash flow more effectively, but you will also be able to stay ahead of future costs that might be incurred.

A healthy business will have an emergency savings account to cover any unexpected costs that might come up. Plus, there will always be enough cash flow to stay current with the anticipated bills that come through every month. Many business owners have a hard time putting together a system to stay ahead of bill payments and credit management. So, it is a good idea to hire an accountant who can help with managing these details.

8. How Much Do the Accounting Services Cost?

The cost of the accounting services needs to be analyzed, to make sure that you can support the payments that will be needed. If you are hiring an employee to manage in-house accounting work, then you will be facing expensive costs for the salary, benefits, office space, and more. For small businesses, it probably doesn’t make sense to bring on another employee.

Instead, a better solution is to find an outsourced accounting team who can help with your business finances. You will see that the costs of a small business accountant go down when you bring on an outsourced team instead of hiring an employee. Not only will you access the skills and services that you need, but you will be able to save money at the same time.

The great thing about outsourced accounting is that your accountant can be located anywhere in the country. Instead of being limited to a geographical location, your accountant can use technology to manage your bookkeeping online. Then, you have instant access to the reporting system so that you always have a current picture of the financial health of your company.

Do you want to learn more about the benefits of outsourced accounting? You need to talk to our team at Easier Accounting. We have been working hard to build a great reputation in the industry. You will see that our services are leading the industry, offering the best options that are needed for small business accounting. Call today to see if our services match the needs of your company: (888) 620-0770

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