One of the most important decisions you will make when starting your new business is choosing the right accounting service. It’s a lot like selecting a new partner for your business. The right accounting professional will become a reliable associate that saves you time, money, and helps your business grow. The wrong accountant can cost you money that you could be using elsewhere. After all, you should be confident when you say “I’m going to meet my CPA”.
When you begin your search for an accounting service, the options will be a little overwhelming at first. Once search on Google for accounting services will yield as many as 17 million results! To make it even more confusing, there are several different types of services to choose from, too.
So, how do make this very important decision? First of all, take your time. Meet with at least three candidates before you decide. Consider the whole picture, including location and budget. Make sure you are a good match because once you establish this relationship, you are going to be working with this person for years to come.
The Most Important Things to Consider When Hiring an Accounting Service
1. Location
Before the days of the internet, it was necessary to have your accounting service close by. Nowadays, more and more businesses are utilizing cloud-based technology to collaborate with their business associates in real time, so location is really no longer an issue if you’re willing to use an online accounting service. Your accountant could be located across the country.
However, if you are a business owner that prefers face-to-face contact, and you need an accountant that can attend important meetings with you, you will need to keep your search local. Either way, make sure the accountant you choose is up to date on the tax rules and laws that will apply to your situation.
2. Consider Your Needs and Objectives
One of the first things to decide on is what you need from your accounting service. Do you need someone on a weekly basis to handle payroll? If you use a good bookkeeping software, you might only need to have an accountant look at your books once a month, or quarterly, to keep you on track. Just don’t wait until tax time to bring in a professional because that can cost you more in the end.
3. Make Sure They are Certified or Chartered
A chartered or certified accountant will have more knowledge and experience than one who is not. That means they can to jump right in and add business value right away. While you can find bookkeeping and tax services from people who aren’t certified (and probably charge less), it’s best to start out with a certified professional right from the start because you will need one as your gets bigger, or if you are ever flagged for an audit.
4. Look for Someone with Relevant Experience
Look for a service that has experience working with companies similar in size, revenue, and market sectors to yours. Do you plan to use software that is cloud-based to keep track of and exchange your financial records? If so, make sure they’re knowledgeable in this area. You should find out if they work with larger clients because you need them to be able to handle the changing needs of your business as it grows.
5. Consider Your Budget
Having an in-house accounting staff is probably going to be out of range for most small businesses. In fact, if your business is new, you probably don’t have the volume of financial transactions that would require a full-time accountant. You may be surprised to find out how much money can save by hiring an online accounting service. You will have many of the benefits of having an in-house accounting team at a fraction of the cost. Don’t be afraid to negotiate fees before you sign on the dotted line and be sure to get all quotes in writing. Don’t make your decision on the spot, take your quotes with you and compare them carefully.
6. Talk to Local Business Associations and Business Owners
There are a lot of resources out there for small business owners, and you should not hesitate to take advantage of them. Their advice is usually free because their job is to encourage economic growth by helping businesses like yours to succeeds. Your local chamber of commerce and the Small Business Association are great places to start. You should also network with other local business owners to find out who they use. This can be a great way to narrow down our list of potentials. If the same service gets recommended over and over again, you know that’s the one you want to talk to. Now is not the time for hasty decisions.
7. Choose Someone Who Will Work to Save You Money
Do you need a tax preparation service, an outsourced accounting and bookkeeping service, managerial accounting, a payroll service, or do you want a service that covers all of your accounting needs in one place?
Many accountants will consider their job done if they manage your books and do your taxes, but a really good accountant is going to much more proactive. Before you hire someone, ask them what they can recommend to help save you money. What percentage of the operating costs of your business could be offset against your taxes? Does this accountant know the laws in detail to help you save money in ways that won’t get you into trouble? Be careful with this question because you don’t want someone who’s going to cross the line and take risks with your livelihood. In the end, it’s you as the owner of the business who will pay the price if laws are broken.
The right accountant can also save you money by reducing costly mistakes that are commonly made by business owners who try to manage their own books, such as incurring tax penalties. Your accountant will keep your books up to date and help you track where your money is going so that you can quickly see where you can cut costs.
The bottom line? A good accountant can do so much more for your business than just file your taxes. Take your time when making this important decision to ensure that you hire the best candidate for your business.
Nice post. You have some really great information that should help a lot of business owners to make the best decision for their needs. Thanks for sharing your thoughts!
I agree that before choosing an accounting service, you need to consider your needs. You should make sure you understand all the services they should offer you, like you said. You should also consider how often you will need their help.
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If there is one thing to take away from the article it is the suggestion that it makes for choosing someone with relevant experience. After all, when you’re looking for an accountant for your small business you’ll want them to have relevant experience. That means that they’ve worked for businesses similar to your own and can bring some of that knowledge and experience to help you with yours.
My brother just opened his business and he wants to make sure that taxes are filed and the books are organized. I like how you explained here that he should consider his accounting needs and objectives and that it’s recommended to hire professional accountants for quality accounting services.
My brother wants to open his own store one day so thanks for sharing this. I like your point about asking your potential accountant how they can help save you money. I’ll definitely suggest he ask this so he can find someone that won’t get him into trouble.
One of the more important things to take note of while looking for a CPA (certified public accountant) is to consider the needs and objectives of the company–especially when it’s tax season time since they would be able to help get those financial statements in order and make sure everything matches up and is accurate. Another thing to consider is looking for someone who has the relevant experience when it comes to hiring a CPA since their services would need to match up with what you’re looking for. If I had a chance to hire a CPA to do a company’s taxes, I would make sure that they would be reasonably approachable when their services are needed.
You’ve got great tips for choosing an accounting service. I love how you said that it’s good to find someone who is close by. I didn’t realize that location was that vital, but it makes sense!
It’s great you talked about the importance of getting an accountant to handle a small business’ financing and numbers since the owner would want to focus their attention on other areas of the business while they’re busy working. Another reason to look for an accountant to balance the numbers is to make sure that you’re not going over budget–so getting an accountant who has experience with balancing numbers that have something to do with a budget is the wisest thing to do. If I had the chance to look for an accountant who could help with the business I run, I would want to make sure that they know their way around numbers.
Thanks for these tips on how to find a good accountant. It would make sense to find someone who is going to be nearby and able to meet face to face. My husband and I are looking for a tax accountant, so we’ll have to find one that meets face to face.
For freelance accountants, recommendations are very helpful to ensure they are efficient and effective when you hire them. Hence, thank you for sharing some helpful tips.
Really great information. One of the things that we need to consider is to choose the best accounting service for our small business. This could identify the things that are needed for our business to achieve financial goals and to become successful. Thanks for sharing this.
My work is looking to hire an accountant. That way, we would have our payroll taken care of. I’ll take your advice and look for one that has experience.
Thanks for pointing out that it’s important to hire a certified bookkeeper from the start since you will need one eventually. I think that it would be smart to hire a professional bookkeeper early on because that would also help you have one less thing to worry about since you would know all your taxes and payroll would be done correctly. That would also help you get more done since you could focus your energy on other parts of your business which would be nice as well.
I love that you talked about looking for someone certified or chartered since they will likely have more experience and knowledge. My husband and I are looking for an accounting service that can help his new company get the financial side under control. We will keep these tips in mind as we search for a professional that can help us best.
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I didn’t know that there are accounting firms that offer online accounting services now! I would imagine it to be more convenient for businesses to be able to keep track of their accounts on cloud-based technology. However, I do agree with you that if a business needs an accountant that can attend important meetings with them, then a locally sourced accounting service will be a better option.
I am planning to start a business and I’m looking for advice to hire a bookkeeping company for it. I’m glad you mentioned the importance of knowing your objectives when looking to hire an accountant, so you know the bookkeeper will meet them. I will consider your advice, and ask the proper questions so I know I’m working with the right accountant.
The other day my brother-in-law was telling me that his son is considering a career as an accountant. I like how this post pointed out that locality plays a role in securing a job in accounting because most businesses would want an accountant who lives within the same state or region. I will definitely share this information with my son as it is useful and true.
As a small business owner, you’re likely overseeing every aspect of your business operations, including your finances. However, unless you’re a financial expert yourself, it’s wise to hire an experienced accounting firm to manage your books and taxes.
Your accountant should have the expertise to help your brand, which includes understanding how to work with a business of your size, with your revenue and in your market sector.