Have you finally decided to hire an accountant for your small business? Many small companies have thrived for years by using accounting software to help them keep their company finances in line. Tracking transactions and income seemed a doable task for anyone.
However, as the business grows, accounting issues also get more complicated for owners. When financial tasks are eating up time you should be spending growing your business, bringing in a financial professional becomes increasingly essential.
Unfortunately, many small enterprises still rely on DIY accounting because it’s relatively inexpensive at first glance. But they miss out on the write-offs and other financial benefits of working with an experienced accountant.
Accountants are not only equipped with crunching the numbers and filing the taxes. They are also knowledgeable in analyzing financial data, reporting on it and making recommendations to make your small business more profitable.
However, there are essential points you need to consider when hiring an accountant for your small business. Know what they are by reading on.
1. What to consider when hiring an accountant?
Accountants will access your company’s most private information, from employee records to financial data. Make sure you turn your books over to someone you can count on. Before starting your search, determine what qualifications your accountant must have. Consider the following for starters:
- Certification: Choose an accountant with the proper educational qualifications and credentials. Don’t hesitate to ask about their certificates and Certified Public Accountant or CPA member number. You can search for their name online on the database of CPA Canada.
- Industry expertise: Considering your business’s services is vital when seeking an accountant. If your company needs tax and financial planning, or retirement planning advice, you might have to seek someone competent in both or with different qualifications.
- Accessibility and Communication: A good accountant should also be available to answer your queries when they arise. You would not want to wait too long before getting a response from them. Ensure to ask how often you can ask them questions and how fast their response times are.
2. What level of financial help do you need?
Determining the financial help you need is critical in hiring an accountant. Ensure to consider your business’s current needs and the years to come. You can start by looking at your financial records to assess their state.
It would also be helpful to create a priority list of tasks you’d like the accountant to tackle. Here are some of the typical accountant’s task lists you can begin with:
- Financial planning
- Daily accounting
- Preparing for Audit
- Tax preparation
- payroll
- Financial Analysis
- Accounts Payable
- Accounts Receivable
3. Do you need a part-time or full-time accountant?
Identifying whether you need to hire a part-time or full-time accountant all boils down to the amount of accounting workload your business has.
Hiring a part-time accountant might be enough if your finances are in good standing and you mostly need help with taxes. If you’re struggling with serious cash flow problems, you might need the dedication of a full-time accountant.
It’s not always necessary to hire a full-time accountant right away if your company doesn’t have a constant need for accounting work. But besides the workload, your company’s financial situation is also a factor when making decisions.
If you cannot afford a full-time accountant or are unsure which route to take, you can give a portion of your complex financial tasks to an accounting firm. You can search for the best CPA firms near me on Google to find the highest quality accounting, taxation and financial services for your business.
Get financial help to grow your business
There’s no exact formula to determine when to hire an accountant for your business. But if you want some peace of mind and a surefire way to achieve financial success, getting financial help from an experienced accountant will be valuable for your business growth.
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