Choosing An Accountant For Your Business
Choosing the right accountant for your business can be one of the most difficult tasks you need to complete when starting a small business. It can also be the most rewarding decisions that you can make for your financial future. There are many accountants out there it is just a matter of following the right steps to make sure you get the right one for your business.
The first step you need to make is to get recommendations from other businesses. Ask other business owners in your area, your bank manager or financial advisor who they use and make a list. You may already have an accountant that you have used for your personal taxes, so add him to your list too. Remember that accountants, like most professions, concentrate on a particular area of expertise. This means that the accountant you used for your personal tax may not be up to doing small business tax.
Next, you will need to decide exactly what role your accountant will have in your business. Will you be getting them to do all your bookwork or just your taxes? Do you want them to be able to advise you on all your financial matters?
Once you have decided your accountant's role, you will need to contact all the accountants on your list and talk to them about your requirements. Ask them what their qualifications are and if they service any businesses similar to yours. You need to make sure that they understand your business and the needs of your business.
As you talk with these accountants, make a note about how they speak to you. Do you understand what they are saying or are they using accounting terms that leave you confused. You need to be comfortable with your accountant and be able to understand what he tells you. You also need your accountant to be able to understand you and your business.
Ask the accountants questions that are specific to your type of business. If they can answer quickly and easily, you can be sure that they will have a good grasp of what will be required for your business now and in the future. If they hesitate or need to look up the answer, they may not be the right person for your business needs.
Finally, ask about their fee structure. You don't want to have to pay out half your profits in accounting fees even if the account is good. You need to find a happy medium between your accountant's knowledge and their fees. Don't make a decision immediately and don't let the accountants push you into making a decision on the phone. Thank them for their time and tell them you will be in touch. Take your time going through your notes on each accountant and give yourself time to make the right decision.
Remember, if you are not happy with your accountant your business may suffer as a consequence. Do your research and if you make the wrong choice the first time, then just keep looking until you find the right person. You should feel like your account is your business partner, someone who is interested in your ongoing success.