Many young entrepreneurs and business owners believe that they don’t need to have an accountant – after all, there’s plenty of accounting software that they can use, right?
Well, wrong. Even though cutting down on costs is vital for any company, removing critical roles from the organization is not good to save money. A good accountant for small businesses is vital. When it comes down to it, having a seasoned professional manage your finances is the best way to save thousands of dollars while making your own life that much easier.
With that said, you probably have a few questions such as, “How do I determine when to hire an accountant?” and “Where can I find the best one for my business?” Well, don’t worry. We’ve got the answers for you; just keep reading.
How to Know When You Need to Hire an Accountant
Half of the battle when it comes to hiring an accountant is choosing the perfect timing. Unfortunately, it’s hard to say when the exact right time is for needing to hire an accountant for a small business. However, there are a few signs you can look for that may help you determine the right time to start the hiring process. Let’s take a look at what they are.
You Have No Knowledge of Accounting
If you’re just starting your business, then you’ll need to know at least the basics of accounting. If you have no idea how to create reports, you know no accounting terms, and you find financial statements confusing, you need to hire an accountant from the start.
You’re Deciding Your Company’s Legal Structure
Deciding on your small business’s legal structure is a vital decision that you should carefully consider. That’s because going for a sole proprietorship, LLC, partnership, or corporation is a choice that will reflect on your finances. If you don’t know how it will impact your company, consulting with a small business accountant is necessary.
You Know Nothing About Taxes
Just because you have a business doesn’t necessarily mean you know anything about filing your taxes. This is perhaps the best reason to hire an accountant for small businesses. Not only do they know how to file taxes in the best way possible, but you also avoid the hardship of having to file taxes yourself, which saves you both time and stress.
You Need to Get a Loan
You don’t need a business accountant to get a loan, but having one will make the process a lot easier for you. The application for a bank loan is often long and challenging, and it may get confusing at times, so having someone to help you organize the documents as well as give you advice is extremely valuable.
Finding the Perfect Small Business Accountant
As you’ve already figured out, having an accountant may come in handy in a variety of different situations. Finding a good one is key for long-term success. Now, let’s see how you can do that.
Look for a Certified Business Accountant
Not every accountant you find online will be a Certified Public Accountant (CPA), but if you choose to hire someone, then you need to make sure he has the proper certification. Qualifying as a CPA is the only form of licensed accounting qualification in the United States, and in order to earn it, one has to pass a specific exam.
When you work with a qualified CPA, you can be confident that your accountant has been pre-screened and has the needed training to succeed in the job. Plus, CPAs are required to renew their certification periodically so that their knowledge is always up-to-date and they are able to handle any responsibility.
Suppose you want to check whether someone is a CPA. You can go to the American Institute of Certified Public Accountants (AICPA) which has a directory of CPAs, accounting companies, and local accounting organizations.
Ask the Candidate These Six Questions
Even though an accountant is not an employee in the direct sense, he’s still someone you need to create a partnership with. You need to have the answers to some key questions such as
- How many small businesses have you worked with?
- Do you have experience in my industry?
- What are all the services you can provide?
- How can you help my business?
- How will we communicate, and will I work directly with you?
- How do you charge for your services?
Knowing the answers to all of these questions will give you an idea of what kind of professional this candidate is. It will also help you evaluate whether he’s the right fit for your company.
Avoid the Internet
Shocking advice, right? However, it’s good advice. When you search for a “small business accountant”, you will get bombarded with thousands of ads and pages, so much so that you will likely feel overwhelmed. Along with that, it’s hard to determine whether someone is good at his job when you’re looking at his paid ad. If possible, try to find an accountant through recommendations from other business owners, friends or coworkers.
Hopefully, this article convinced you that hiring a business accountant is a good decision for your business. Not only will it help you save money, but it will also reduce the amount of effort, time, and stress that you spend on your finances, thus enabling you to focus on other critical aspects of your company. Along with that, by using our tips, you will be able to hire someone for the job quickly and without a lot of hesitation.
With that said, if you want to learn more about accounting, business, marketing, or any other aspect of owning a company, head over to the Camberlion blog for more information.