Determining that this is the right time to hire an accountant is a crucial step for any emerging business. However, you must ensure that your financial information, which is one of the most significant parts of your business, is in the right hands. An accountant helps in – drafting your business strategy, assessing your inventory, identifying ways to minimize your tax liability, and figuring out growth opportunities.
Whether you need support in collating your financial statements, require someone to file your taxes, or need someone who serves as a financial advisor, choosing the right accountant can be highly advantageous to your business. But how can you find a suitable accountant for your business? Every accountant is different in terms of qualification, interest, and specializations. A logical exercise is needed to find the right person.
What does your business need?
For finding the right accountant, you should begin with a fundamental question – what does your business need? It must be in your mind before searching for an accountant what kind of services you need. Do you need assistance in filing & reducing taxes? Are you looking for someone to manage your daily accounting practices? Do you need to chalk out your financial strategy and financial goals for the coming years? Identify the main reasons you need an accountant and then choose someone with a relevant skill set. Given below are some tips to help you choose the right accountant.
1) Qualification & experience
A qualification check is the first step to finalize your accountant. Based on your needs, you may prefer a Chartered Accountant or a Certified Practicing Accountant (CPA). It is also possible to consider an accountant who is not registered or certified. However, this is not recommended most of the time. While people can do bookkeeping and perform other finance-related tasks without being licensed or qualified to the required level, it is advantageous to hire someone who is trained & experienced enough to fulfill your needs.
2) Software & technology
While choosing an accountant, ask about the software and technology they will prefer to use. Identify if they are comfortable switching to the latest online accounting solutions? You may be envisioned to develop an accounting software system for your business. Is your prospective accountant compatible to work with the required tools & technology to fulfill your vision? Moreover, data security is also a big concern, so it is advisable to choose an accountant who is expert enough to operate the software with encryption built-in.
Today many entities are collaborating online and managing their business using cloud-based technology. With the help of cloud accounting, you & your accountant can access uniform real-time data at the same time irrespective of location. However, local accountants or firms can offer you extra advantages. A local accountant is considered more profound in taking care of your taxes because they possess more knowledge of local laws and legislations. A local tax expert can assist you with central and local statutory requirements to leverage your savings and prevent you from overpaying.
4) An accountant or a firm?
Today many businesses are managing their financial records and taxes on their own. With technology, it has become very convenient for business owners to perform routine bookkeeping tasks. However, a business may realize the need to hire a professional accountant or a team of accountants to manage and organize financial information. Whether you need an accountant or a firm will depend upon the scalability and nature of your business.
5) Use social networks and business associations:
Use your social network to find the right and experienced accountant. Also, note while choosing an accountant that what’s suitable for your relative’s manufacturing company might not be appropriate for your retail business. Do not forget to take into account the differences like the nature of businesses. The best accountant for a single proprietor might not be suitable for a company with eight to ten employees.
Apart from social networks, you can use networks of business advisors to find the right accountant. Today various voluntary organizations are working to assist businesses in their human resources needs. You can use their advice to appoint a trained and suitable accountant for your business.
With the points mentioned above, you have the opportunity to choose an accountant who is proactive about saving you money. A suitable accountant can do much more for you than just managing your accounts or furnishing your tax returns. Hence while selecting an accountant, ask whether they could offer ways to save your business money. Always remember that a suitable accountant can leverage your resources and help your business grow, while an inappropriate accountant could cost you much-needed money. So consider all the necessary aspects before appointing your accountant.