Are you one of the many business owners who are looking for a good accounting firm? This could seem like an intimidating process, especially if you have limited funds set aside for this service, but it does not have to. If you want to know what to consider when you hire an accountant, this article is for you.
If you own a small business, part of what you do is oversee all aspects of your business. Apart from developing products, assisting clients, or managing your employees, this includes monitoring the financial aspect. And this is crucial because poor finance management can result in profit loss and eventual business closure if things go out of hand.
This is why having a good grasp of bookkeeping and accounting is vital to your business’ success. If you don’t have the talent and skills to work on the financial aspect of your business, it is best if you hire an experienced accountant so the taxes and the books of your business can properly be managed. Here’s what you need to know to ensure you hire a reputable accounting firm for the job:
Reasons Why Small Businesses Struggle Finding a Good Accounting Firm
The reason why small businesses have difficulties in finding an accounting firm is typically due to their inability to identify the exact financial service that they need. It could also be because they are unsure of where to find the best accountant that fit their need or they could have a financial problem. Maybe these businesses do not have a proper budget.
What you can do to combat these issure are:
- Be specific about your financial needs. What are your financial gaps? What are the specific services that you need, such as accounting, payroll, or tax services?
- You should decide on choosing between a remote or a local accounting firm and decide on whether you’ll hire a bookkeeper, CPA, or a QuickBooks certified expert.
- Decide how much you will budget for these services.
Take Note of the Qualities of a Good Accounting Firm
It’s important to check the qualities of the accounting staff you wish to hire. After all, they can impact your small venture’s financial health. Consider the following:
Accessibility– Many companies like to get or hire accountants who are just in their area for convenience. However, it is not as necessary anymore today since there’s cloud accounting that enables you to work on real-time data with your accountant who is in a different location.
Certifications– There are certain tasks like auditing and securing your loans that require certified accountants. There are also other tasks that do not necessarily require certification. These tasks include bookkeeping and tax regulation.
Experience – The accountant that you plan to hire should have relevant experience, knowing revenue updates and current tax deadlines. He or she should understand how to work with a business like yours.
Proactive in Saving Money – You should hire an accountant that not only helps in managing your business but also helps in saving money. The accountant should understand your cash flow. More importantly, they ought to be be proactive in accomplishing a cash surplus like more savings via acceptible tax deductibles.
Matched Software – Find someone who uses the same software that you use to make sure the sharing of data will be seamless.
Some Things to Keep In Mind When Hiring
Networking is very important so you should leverage your personal network when looking for a good accountant. You can reach out to your acquaintances, friends, and family for any recommendations and use that to your advantage.
When you find someone already, take your time in the hiring process to ensure your business finances are in the hands of reliable professionals. Take the time to interview other candidates as well so you can have more choices and weigh the qualities that each candidate offers. That way, you can make a more practical decision.
Moreover, you should allocate a reasonable budget for your accountant. Be upfront about what you can afford during the negotiation, but you must also remember this is a service that entails expertise so there is an acceptable industry standard.
And most of all, keep in mind that not all accountants are CPAs. To become a CPA, accounting graduates must pass a board exam and meet the criteria of a CPA. CPAs are required to renew their certificates, which means that they need to be up-to-date with current accounting issues, including BIR regulation updates.
Some businesses earning a certain amount are required to submit audited statements from a CPA to the BIR. However, if you’re just starting, a regular bookkeeper or accountant (not-CPA) can also help with simple record keeping. If you need any form of assistance, don’t hesitate to call our team of CPAs and finance experts.