Do I Need An Accountant For My Small Business?

Try our payroll software in a free, no-obligation 30-day trial. You will want to work with an accountant who understands your specific requirements. When you meet with accountants, discuss your business and your accounting needs. Let the accountant know what steps you have already taken with your accounting. Follow these simple strategies to begin your search for a small business accountant. But if your gut feeling is saying no, you should probably walk away.

But you will almost certainly need one if your company grows to the point when you need a loan, or if you’re ever audited. You want your prospective accountant to be able to offer financial advice and ask you the right questions as well. One way to gauge this is to simply ask the candidate if they have any questions about your business. The more involved they are, the better value you will get from their services, helping you save money and grow your business. Look for an accountant who has a good understanding of tax laws, accounting software and business management.

How to Find an Accountant For a Small Business

Make sure you’re making the job posting widely available so people from different backgrounds can apply. A diverse pool of applicants is essential in any hiring process. Business owners who’ve aced Accounting 101 can ask targeted questions during an interview to assess whether the candidate is ready to take on all they’re looking for.

• Your financial situation is unique and the products and services we review may not be right for your circumstances.
• If your business is simple, you can probably find a simple bookkeeping or accounting package to meet your needs.
• Many providers have a way of connecting you with financial professionals who are certified in the software and would be a good fit for your needs.
• It’s even better if they’ve worked with companies in similar market sectors to yours, as that will help them understand the unique needs of your business.
• You want the advisor to respond with answers like “we educated the client on which costs were deductible” or “we restructured this client’s business to take advantage of lower tax rates,” etc.
• Some accountants charge a flat fee for bookkeeping services or an annual fee for a specific set of services such as taxes.

This can represent excellent value for money because it means the accountant is always there, ready to answer a query or undertake work. Check how the accountant works out their charges or fees, as this can potentially save you thousands of dollars. It would also be useful to get a recommendation from someone who also works in your industry so you can be sure the accountant has a real understanding of what your business is about. You could ask the prospective accountant to provide three client references.

#5: Compare Fees

LinkedIn is one of the largest globally, and if you already have a profile there, you could use it to search for accountants who’ve been recommended by others. When searching for an accountant, the ideal candidate might be right under your nose. Start by asking any friends or family members who own small businesses if they would recommend their accountant. The answers to both questions could prove useful at a later stage, when you come to interview candidates.

• Not all accountants offer all of these, so make sure they can do everything you need them to do.
• CPAs offer a range of services, including tax preparation and filing.
• Otherwise, they may be missing valuable tax deductions, or giving you advice on your financials that isn’t based on your industry’s standards.
• Put together the financial reports you need to get loans and investment.

how to find an accountant for small business even better if they’ve worked with companies in similar market sectors to yours, as that will help them understand the unique needs of your business. If they do, it’s a good sign as you’ll know they should be able to handle your growing needs over time. It’s appropriate to ask about the accountant’s fees and how they bill for their services. Some services may be a straight fee charged by the job, while others may be billed on an hourly basis.

Get references and check accreditation

There are many additional accounting certifications that recognize specific skills. These include Accredited Payables Manager , Accredited Payables Specialist , Accredited Receivables Specialists , and Certified Payroll Professional . We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. There are five key questions to ask before deciding on a small-business tax advisor. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

How Can You Help Me Run My Business Better?

However, small businesses that don’t have a constant need for accounting work might find that a firm can bring 360-degree service at a fraction of the cost. Hiring an employee tends to be costly when you add wages, employer payroll taxes, and other benefits. The decision about where to find your accountant really comes down to what suits your company best. Depending on how you want to handle the finances, your accountant could really be based anywhere in the world. For example, if you’re happy to collaborate via email, phone calls, video-conferences, or secure accounting software, then you could be in New York and they could be in London.

• Therefore, to ensure you choose the accountant who is the best fit for your business, be selective and take your time with the decision.
• Check out our reviews of the Best Accounting Software to find one that will work for your needs.
• CPAs can represent you at hearings and speak for your business if you’re audited by the IRS.
• If your business has grown in revenue and transactions have become more complex, you may want to consider hiring a full- or part-time internal accountant.
• Trade body membership can help ensure the person you choose is reputable and qualified to manage your business finances.
• Whether you need a CPA or a solo accounting firm depends on the scale of your business and the number of transaction you do per month.

But to get tax planning advice, tax returns prepared, or audited financial statements, you need a CPA or certified public accountant. By handling daily bookkeeping tasks for your small business, you can save a lot of money on accounting services. Patriot’s easy-to-use online accounting software is made for small business owners. There are many online accounting services that exist, and for many business owners this may be an ideal solution because of the ability to both communicate and work remotely. In our evaluation of the best online bookkeeping services, we selected Bench as the best overall because of its wide range of services offered at a great value. In addition to bookkeeping support, Bench also offers tax assistance, payroll integration, and catch-up bookkeeping services.

Do I need an accountant for a limited company?

Look at directories for accounting companies and societies listed in your area. The American Institute of Certified Public Accountants also has a directory of CPAs. The above examples are just a few ways an accountant can help your business. An accountant can also assist you in tax preparation and act as a trusted adviser. Like choosing an employee or a vendor, it’s hard to narrow down which accountant is the best fit. The right accountant will have more than just prestige – it’s important they understand small business needs, and are able to offer relevant insight.