A qualified business accountant should be ready to offer client references, so give those customers a call, too. Ask how the accountant served their business, and whether or not they’d recommend the accountant for your small business. We have you covered with these 6 questions you should ask every potential business accountant. Not every business accountant is a Certified Public Accountant (CPA). But when it comes to getting advice on your business financials, you should probably work with a CPA. If you do a quick Google search for “business accountant,” you’ll probably find ads splashed all over the page.
Second, while some accountants may charge more for their experience or expertise, it can be a great investment for your business. Seeking out the cheapest option can leave you with subpar service and without the support you really need. For example, lawyers face different regulations than other professional services, so an accountant who specializes in legal practices would be ideal. If your business is in e-commerce, a specialist will be able to help you navigate the complex sales tax issues, and recommend apps and tools to make your business run more smoothly.
When Do You Need an Accountant?
Find out how their current clients have grown and developed over the years to get a sense of whether they’ll be able to handle your company’s evolving needs. If you received the recommendation from the IRS, your state board of accountancy, or a state CPA society, those credentials are most likely legitimate. Be sure to ask for references and speak with some of your prospective accountant’s clients before making how to find a small business accountant a decision. Specifically, find out if these referrals have a particular niche, such as small business owners or clients in certain industries. If possible, try to meet face-to-face with the potential accountant so that you can gauge your comfort level in working with them better. If you hire the right business accountant, he or she can be a trusted advisor throughout the entire lifespan of your business.
- Using cloud accounting software can make it easier to hire the right accountant for your business because you’re not limited by geography.
- When manually doing the bookkeeping, debits are found on the left side of the ledger, and credits are found on the right side.
- ” or type “small-business CPA” into Google, searching online is a great place to start looking for the right CPA.
- The directory also includes people who have completed the agency’s Annual Filing Season Program, a series of voluntary continuing education classes covering federal tax law and ethics.
- Most business owners understand the value an accountant provides, but how do you find a good accountant?
- This is especially true if you’re in a complex or fast-changing industry.
- Accountants often charge by the hour, so making them do simple data-entry tasks is not the best use of their time – time that you’re paying for.
Many small business accountants also offer training on how to tailor your technology to your specific needs. Some small companies still use outdated software and reporting methods, but hiring an accountant gives you access to cutting-edge technology that can save you a significant amount of time. However, while tax preparation is one of the first services that businesses tend to outsource, accounting firms offer much more to your small business. If you’re looking for a business tax advisor, you’ll want to find a professional that falls into one of these three categories. Keep an eye out for someone who has specific experience with business taxes, not just personal taxes.
Federal Income Tax Calculator: Return and Refund Estimator 2023-2024
If you’re comfortable with technology, an online accountant may be a good option. This type of relationship will often require sharing files and documents online as well as communication via video chat or phone. The SmartBiz® Small Business Blog and other related communications from SmartBiz Loans® are intended to provide general information on relevant topics for managing small businesses.
CPAs and accountants tend to focus on particular niches or specialties, such as small-business owners, high-net-worth individuals, or clients who work in certain industries. “For example, if you’re a doctor, talk to other doctors and ask who they use,” he said. Some accountants will do little more than manage your accounts and complete your tax return forms, but the best accountants are more proactive. So before choosing an accountant, ask what they could suggest to save your business money. Once you’ve narrowed down your list of potential accountants, it’s time to schedule an initial consultation with each one. In addition, it can be beneficial to hire an accountant if you need help with budgeting, forecasting, tax planning, or setting up an accounting system.
Your Business Is Complex
Working with an accounting professional who understands tax laws and bookkeeping is your best option, especially when compliance is at stake. Accountants can also guide your small business in more profitable directions, giving you “the biggest tax bang for your buck,” Cordano said. If you’ve decided a small business accountant can help your organization, follow these best practices to choose the right financial professional for your needs. Before you make your final decision, ask to speak with current and past clients, ideally in your industry. Reach out to gauge satisfaction with the accountant’s services and fees.
Another type of financial expert is a CPA (Certified Public Accountant). A CPA is an accountant who has done additional coursework and passed a state exam to get certified. CPAs can, among other things, produce the audited financial statements that are required by publicly traded companies.