5 Tips to Help You Choose the Right Accountant for Your Business
One of the hardest aspects of running a business is managing finances. How much money is coming in daily? How much are you spending to operate your business? Certainly you can use a software management tool such as Quickbooks to manage your business’ finances but as your business grows, you’ll need help. That’s why it’s crucial to choose the right accountant for your business. An accountant–especially a Certified Public Accountant–has the expertise to analyze your revenue and expenses so that you are actively saving money and running a financially stable business.
A recent survey conducted by Onpay found that while 87 percent of entrepreneurs believed their accountants were trusted advisors, a mere 30 percent of small business owners sought the help of an accountant. Considering the importance of an accountant to the survival of your business, it is essential that any small business would have one at arm’s reach.
If you are ready to choose an accountant for your small business, the tips below will help you make a strong decision.
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1. Area of Expertise
Consider this: if you run a local beauty salon, do you need an accountant who works with real estate investors? Or, would you rather an accountant who works with local small business owners with storefronts? Or even better, would you rather an accountant who works within the beauty industry and understand common tax deductions that can be taken? All entrepreneurs will need an accountant who is well-versed in tax laws, can analyze financial statements and prepare tax and financial documents with ease. However, it’s important to work with a professional who works with businesses of a particular size and if possible, within a specific industry.
When you are searching for an accountant, strongly consider one with expertise in businesses of the same size and revenue as yours. By having expertise in a specific industry as well as a specific business size, an accountant will be able to understand the specific financial needs of your company.
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2. Proven Ability to Help Companies Grow
You might be working on your kitchen table or at a shared workspace now, but in a few years, you will be in another space. Your accountant should have the experience to help your company evolve. When you are deciding to work with an accountant, you can ask for referrals. These referrals should be able to share how this accountant has helped their company develop over time. In addition, you want an accountant who will be able to help your business grow over time.
3. Research Professional and Business Organizations
One of the easiest ways to find an accountant is by entering a Google search. You will come up with lots of options. However, contacting your local chamber of commerce or a professional organization such as National Association of Black Accountants will have local chapters and membership directories with listings from accountants.
4. Ask for Referrals in Your Network
If you need an accountant for your small business, the absolute best referrals will come from entrepreneurs. Scour LinkedIn groups and ask for referrals in Facebook groups related to your business industry. When you receive your referrals, be sure to ask why you believe the accountant is trustworthy and delivers the results you would like to see in your business. When determining how to choose the right accountant, nothing beats a glowing referral and verifiable experience.
5. Verify License
As you interview accountants to work with, be sure to note their credentials. Where did they go to school? What licensing do they possess? Always check an accountant’s credentials before making a decision. Once you have chosen an accountant that meets your business’ specific needs, it is important to check their credentials. You can easily check an accountant’s background by visiting This Way to CPA.
All entrepreneurs want their businesses to become successful. Your accountant should understand your mission and how they can help your business grow over time.