A relationship with an accountant is important for every stage of your life, most especially if you are in business for yourself. Entrepreneurs face some of the same financial challenges as larger companies. Taxes, for one. Payroll and income tax too. Large companies have accountants on staff working for them, but smaller companies may not have the resources to hire someone full-time. You may be thinking that you can save money, keep a closer eye on your cash flow, and maintain privacy if you do your own bookkeeping. An accountant, however, is a key member of your management team, not just a ‘bean counter’. Professional, certified accountants are worth their salt because they know HOW to save you both time and money. Here are some considerations for hiring an accountant that you can rely on:
- EXPERIENCE – Choose someone who specializes in small business issues and has experience representing other companies in your industry so they understand the nuances of what goes on in your business.
- COMFORT – A personal relationship is important. Make sure you feel at ease with your accountant. You want someone reliable and approachable who’s going to answer your questions and listen to you and your needs.
- SIZE MATTERS – Choose someone who fits the size of your firm. If you’re in business by yourself, or have few employees, you don’t need a large firm. And a small firm can give you personalized service large firms can’t.
- CPA vs. non-CPA — A Certified Public Accountant has a minimum level of education and experience, has been tested to prove their competency, and must get continuing education every year to keep current. Certain situations demand a CPA’s involvement, such as a loan application. Other tasks such as bookkeeping, preparation of tax returns or write-up work can be handled efficiently by a general accountant. Try to choose someone who has both on staff to maximize their effectiveness at serving your needs while economizing at the same time.
- WORD OF MOUTH – Seek referrals from people you trust. Interview prospective accountants personally and check their references. Ask potential accountants specific questions about their business practices, their industry, and how they would handle hypothetical situations that occur in your business/industry.
In conclusion, look for an accountant who brings not only expertise in number crunching, but consulting and business planning too. And choosing someone you actually like is a big plus! If you are intimidated or put off by your accountant, or they are not listening or giving you the right advice, you’re going to have a much harder time achieving your financial goals.
