Business owners are generally good at multitasking. For example, you would often see them wearing multiple hats and performing several make-shift tasks along the way.
However, that does not imply that entrepreneurs are qualified to undertake the responsibility of managing finances.
The reason is, even the simplest financial recordkeeping errors can lead to a disaster for the company.
A certified public accountant can help you organize your money and even assist you with tax preparation. However, understanding when you need an accountant and knowing how to get one are two entirely different things.
To make your life easier, we have put together to ensure you get hooked up with the perfect accountant to look after your finances:
Establish Your Needs
Determine your objectives right from the get-go.
Dive into your financial data to assess the current situation and gain a better aerial view.
You will almost certainly need a full-time accountant if you are facing major cash flow issues.
On the contrary, a part-time accountant specializing in taxes could be a smart option if you are in good financial shape and primarily need assistance preparing for tax season.
You should keep an eye on industry-related issues. In case you are new to a sector and having difficulty getting a grasp on its financial structure, an accountant with appropriate industry expertise could do a world of good to you.
The accounting job market is undergoing drastic transformation due to the intervention of cutting-edge technology.
Accounting software allows accountants to do duties more quickly and efficiently while gaining a better understanding of their client’s financials.
It is the hallmark of a good accountant to keep up with high-end software and be eager to learn and accept new technologies over time.
Make it a point to ask prospective accounting experts what software they use, why they like it, and how they envision technology affecting the profession in the future when you meet with them.
The Ability To Communicate Numbers
Communication is essential in every profession, but it is more important for someone who is fully responsible for a company’s finances.
Accounting details are complex and challenging to comprehend for anybody who is not a skilled accountant.
Though many accountants create comprehensive graphs, reports and income statement, the finest ones can easily explain their significance to non-accountants.
Therefore, you should hire an accountant who can lay out the issues and their potential solutions in a manner that everyone understands. It will enable your team to develop the best course of action.
Ask For Recommendations
Are you looking for a dependable accountant?
Your best bet is to request referrals from your professional colleagues, friends, and family.
Nothing beats a personal reference from someone you can trust. After gathering recommendations, consider your alternatives and conduct some research by drilling down online reviews.
While some accountants ask for monthly payments that cover tax preparation, others charge a monthly fee for solely accounting services and then bill clients separately to offer tax preparation services.
In other words, accountants follow different fees structures.
Besides, accountants’ rates also differ, considering their experience and expertise. So before making a final selection, be sure to do your homework on the budget and the payment procedure.
Prepare a Questionnaire For The Interview
Another critical step is to lay down a questionnaire for the interview. You will have peace of mind knowing that any applicants you interview align with their claim.
To start with, the following are some of the questions you may consider adding to the list:
- Share an instance when you made an accounting error. What steps did you take to rectify it?
- What has been the most challenging situation you have faced in your career?
- What are some of the most frequent financial reports you produce?
Depending on the requirements, you could also add more questions to discover whether the candidate is a good match for your business culture.
Of course, asking particular skill-related questions to your accountant definitely helps. But we would also recommend you get to know them like you would any other person.
Perform a Background Check
Before signing the contract, speak with some of your potential accountant’s customers. You may leverage professional services to assist you with this.
However, every accomplished accountant will most likely be prepared to provide you with a list of references.
That way, you can verify the information provided by the accountant.
When contacting referees, do not make them feel weighed down by a slew of written inquiries to respond.
Instead, a ten-minute conversation on call will certainly reveal significantly more about your potential accountant than a three-page questionnaire filled with dull written responses.
The Concluding Remarks
Accountants play a significant role in the smooth running of a company and ultimately turning it into a success story.
The accountant will alleviate your financial stress and allow you to concentrate on the day-to-day operations of your company.
But hiring the right accountant is easier said than done. Thus, you are better off walking the tight line of the above guidelines to get the job done.