Considerations When Hiring an Accountant
After you decide to hire an accountant for your business, you need to take time to consider some things. This ensures that you select the right person for the job. You have to think about the workload, the accountant’s location, and the accounting software to use. Also, look at the salary and whether they can help in reducing your business taxes.
It is advisable to hire a capable and experienced person to handle your financial books. The good news is that if you need a small business accountant, accountants can help you reconcile, review and crunch your numbers to make them count.
Below are some of the considerations when hiring an accountant:
Qualification and Licensing
The first, most crucial factor is licensing and academic certifications of a candidate. Whether you hire the whole firm or a particular practitioner, you need to verify their qualifications. In this regard, there are two certifications, Certified Management Accountants and Certified Public Accountants. In both cases, constant learning is needed to be updated with changes in the profession to remain licensed.
Service Charges
The billing rate of an account is also necessary to consider. Professional accountants charge either by the hour or a fixed charge. You need to compare the fee with your budget to establish whether you can afford the rates or if a cheaper alternative is required. Remember that the total bill should be reasonable and proportional to the complexity and quantity of the tasks. Eventually, the company needs to get services that match the amount paid to avoid losses in the long run.
Relevant Experience
The best accountant should have experience preparing financial documents and tax returns in a company similar in revenue and size to yours. If your company has adopted cloud-based software, you will need someone conversant with cloud computing. It is better if previously, they held accounting positions in companies operating in the same industry as yours. It will enable them to grasp your business’s unique demands, leading to better results.
Social Networks and Referrals
When finding an accountant, the best candidate could be close to you. You can begin by asking family and friends who have small businesses if they can recommend their accountant. Choosing an accountant might be a personal choice, so what works for your best friend might not work for you. Also, you can consider the difference in business structures. A good accountant in sole proprietorship might not perform well in a company having ten employees.