Running a small business means wearing many hats every day. From managing operations to leading your team to increasing sales and keeping customers happy, your responsibilities are endless. Amid this busy process, one of the most important tasks that is often overlooked is budgeting. Getting your finances in order, however, is key to the long-term success of your business. That’s where hiring an experienced accountant can make all the difference.
Bringing an accountant on board allows you to delegate financial tasks like bookkeeping and taxes, and gain strategic insight into the financial health of your business Accountants not only ensure accuracy and compliance but also provide financial analysis and planning that can help take your business to the next level.
Why hire an accountant?
Before you begin your search for the right accountant, it is important to understand how valuable this role can be to your business. While it may seem like an unnecessary expense at first, the benefits of hiring an accountant often outweigh the costs. Here are some of the top reasons why every small business should consider an accountant.
Financial Accuracy and Compliance: Auditors ensure that your financial statements are accurate and comply with federal, state, and local laws, protecting you from costly audits or penalties.
Tax expertise: From quarterly taxes to payroll taxes for sales tax, accountants handle detailed information and maximize deductions to minimize your taxes.
Save time: Managing your finances can be time-consuming and lead to costly mistakes. An accountant frees up your time, allowing you to focus on what you do best—managing your business.
Strategic business insights: In addition to spending volumes, accountants analyze your finances to provide actionable insights on how to cut costs, improve cash flow, and provide improvements that have been made.
By outsourcing the management of your finances to an accountant, you will have more time to focus on growing your business for peace of mind knowing that your financial information is in capable hands.
Which accountant is right for your business?
Once you decide to hire an accountant, the next step is to figure out what type you need. There are many different types of accountants, each with their own specialty. Knowing the specific needs of your business will help you make the right choice for you.
Certified Public Accountants (CPAs): CPAs are licensed professionals who can perform essential accounting services, such as auditing, tax planning, and financial analysis. They are ideal for smaller businesses that need a variety of advanced accounting services.
Management Accountants: These professionals work within the business to support management through budgeting, financial performance analysis, and data-driven decision making. They are great for growth-focused businesses.
Forensic auditor: If you are concerned about fraud, a forensic auditor can perform detailed audits to identify financial irregularities and ensure compliance.
Auditors: Auditors review financial documents and internal controls to ensure compliance with accounting standards, which is especially important if you seek external financing.
Bookkeeper: Bookkeeper handles day-to-day tasks such as recording transactions, reconciling accounts and invoicing. They lay the foundation for high-quality auditor analysis.
Tax Accountants: These accountants specialize in tax preparation and planning, staying abreast of tax laws to minimize payments.
Deciding which type of accountant to hire depends on the specific tasks you need help with and your business goals. For most small businesses, partnering with a CPA is a good option.
Where to find an accountant
Now that you know what kind of accountant you need, where can you find one? Here are some of the best places to visit.
Online platforms: Sites like LinkedIn, Upwork, and Indeed are great for finding accounting professionals. You can post business cards or search for candidates who are actively looking for new clients.
Professional associations: Organizations such as the American Institute of CPAs (AICPA) and the National Accounting Association have directories for licensed professionals. Here you will find the best accountants.
Research: Ask other business owners in your network for suggestions. Personal references are a great way to find reliable accountants with a proven track record.
Accounting Firm: Outsourcing your accounts to a local firm gives you access to professionals who can provide customized services for your needs.
What to look for in an accountant
Key qualities and skills to keep in mind when evaluating candidates are:
Certification: Always check that an accountant is certified such as a CPA license, to ensure they have the necessary qualifications.
Industry Experience: Look for accountants who have experience working with companies in your industry, as they will have a better understanding of your specific financial needs.
References: Ask for testimonials from current clients and check online reviews to check the auditor’s reputation.
Communication Skills: Your accountant can clearly explain complex financial matters and answer any questions you may have.
Payment Schedule: Inquire about pricing in advance. Compare hourly rates or offers to find a plan that fits your budget.
Aspects of hiring a qualified accountant
Ready to hire an accountant? Follow these steps to make sure you’re making the right choice:
Create a job description: Clearly identify the duties and qualifications you are seeking. This will help attract qualified candidates.
Source Candidates: Use online forums, referrals and professional networks to find potential accountants.
Interview: Ask about their experience, problem-solving style, and communication style.
Verify credentials: Highlight their qualifications and ask for references from previous clients.
Offer a trial project: Start with a small business to assess their work before committing to a long-term contract.
On board and set expectations: Once you hire, be clear about your expectations for reporting, deadlines, and communication.
Red flags should be recognized
Watch out for potential red flags when hiring:
Lack of certification: Always make sure the auditor is properly licensed and certified.
Poor communication: If the auditor is slow to respond or unable to explain things clearly, this could be a sign of trouble.
Exceptionally low costs: While price is important, significantly lower costs can indicate inexperience or substandard workmanship.
Negative reviews: Check for any complaints from previous clients, especially about accuracy or professionalism.
Conclusion
Hiring an experienced accountant is an important step in managing your small business finances and ensuring your long-term success. With a qualified accountant by your side, you’ll gain valuable financial insight, increase productivity, and have more time to focus on growing your business.
By following these steps, you can confidently find and hire the right accountant to meet your unique needs and help take your business to new heights.
