Accounting is the story of a business told in the language of numbers. Some people have a natural understanding of numbers, but it is not something that comes naturally to everyone. Thus, even if you have learned the basics and can prepare your own budgets or monthly financials, it is very possible that you will want an accountant at some point. You might need someone to help you with a budget or cash flow forecast; prepare your tax returns; external financial statements; or provide assistance with a long-term financial plan.
When you decide to hire an accountant, you will want to find someone that you feel comfortable with and whose style is compatible to yours. You are not just looking for someone to take over the accounting - you are looking for someone that will be a key advisor to your business. They will be giving you advice about an area of critical importance - your money. So take care in choosing your accountant.
Here are some suggestions to help you find the right accountant:
Determine the general scope of work that you want an accountant to provide to your business. Are you looking for someone to help you keep the books and prepare monthly financials? Are you looking for an annual audit and periodic advice? Are there other areas in which you need an accountant's help?
Ask for referrals from other small business owners or from a local business resource center. Look for someone that has experience working with small businesses and has provided the type of service that you are seeking.
Set up interviews with two or three accountants so you can see which one you are most comfortable with.
Keep the interview focused on its purpose, that is, to determine if you are comfortable and have confidence in the accountant. Don't ask for accounting or tax advice during this process, except in the most general sense to see how they communicate their advice.
Ask each accountant for two tor three references for other small business clients. Contact the references to find out their feelings about how easy it is to work with that accountant.
With the information you have gathered, you should be prepared to select the right accountant as an advisor for your business.
The following questions should be covered in the interview process:
What are the primary services that you provide to small businesses?
Do you have knowledge about my industry or field? If not, ask them to describe whether or not they think this is important for the services they will be providing to you. In some circumstances this experience may not be essential, but in others it will be, so talk this through during the interview process. For example, if you are a government construction contractor and are being paid on a cost-plus basis, you will want to find someone with some experience with the regulatory reporting and accounting requirements.
How will you be charged for their services? Most accountants will establish a monthly retainer for recurring services such as monthly or quarterly financial statement preparation and charge by the hour for audits and tax returns.
What can you do to reduce your fees? Listen to the answers you get, and determine if you will be able to keep your accounting costs down using the tips provided.
As my business grows, how will they be able to help you? Ask them to describe services to other clients that they have. You can learn a lot from an accountant that has helped other small businesses go through growing pains such as changing working capital needs, obtaining financing, raising venture capital or even selling their successful business.
More:
Ways In Which An Accountant Can Help
Keeping Accounting Costs Down
