If you’ve already made up your mind about getting an accountant for your business, half the battle is already won. For those who are still unsure about the decision, here are certain indications that your start-up requires professional accounting help.
1. You’ve just started your new business and the financial statements, and report-making are all becoming a little too difficult to handle. If you are unfamiliar with the basics of accounting, a professional accountant can help in streamlining accounting for startups.
2. You’re still deciding the legal structure of your company (LLC, sole proprietorship, corporation, or partnership). The choice you make will affect your finances and it also comes with its own complications. An accountant will be best for guiding you through this.
3. You aren’t familiar with the best practices for filing taxes.
4. Your startup is growing rapidly and it’s becoming difficult to manage the accounting processes.
5. If you need an accountant to help you manage your day-to-day finances efficiently.
So you have determined that you need professional help in accounting for startups, but how do you find the right accountant for your small business? In the following sections, we’ll give you some great tips on choosing the best accountant for your startup.
Tips For Hiring The Right Accountant
Although you won’t be hiring your small business accountant as an employee, it would be a good idea to conduct the hiring process in the same way as you do when hiring an employee. This means due diligence and thorough vetting. Schedule a face-to-face interaction with some potential accountants, and try to get some clarity on a few issues, like –
1. Ask about their experience in accounting for startups and small businesses
The first thing you need to ask is whether the accountant possesses any prior experience in handling accounting for startups. Every small business owner understands how complex it can be to run a startup. The financial needs of a small business are also unique. To find the right accountant for your startup, you need to ensure that they understand the complications of handling a small business. You can also ask the accountant for their client references to better determine if they’ll be well-suited for your business.
2. What range of services do they provide?
Most accountants and accounting firms provide auditing and tax assistance, which are the most basic services they can provide. It would be a good idea to ask your potential accountant during the interview whether they can provide any additional tax services besides these. Can they help you with a business valuation, bookkeeping, risk assessment, or budgeting? The most qualified accountants will always have more than just auditing and tax services to offer, so always make sure that you know what kind of services they can provide your business.
3. Enquire whether they have relevant experience in your industry
Besides prior experience with startups, it’s also a good idea to enquire whether they have any previous experience working with other businesses in your industry. You will find many accountants in the market that specialize in some industries. If you are running your business in a niche that has specific accounting needs, you’ll want to hire an accountant that has experience in dealing with this. You can also ask whether they have experience in handling any business structure like yours.
4. How will the accountant help in growing your business?
Ask the potential accountants about the various ways they will help in growing your business. For the most part, the accountant will be an advisor for your business. They can also help you grow your small business over time by providing you with the financial capacity to do so. A good accountant will help you structure the financial model of your small business from the ground up. You should ideally hire an accountant who can help in expanding your business down the line.
5. If you are using an accounting firm, ask who will you be working with
Your accountant will, in time, become your trusted partner, and you’ll be depending on them to sort out your financial needs. If you are using the services of an accounting firm, make sure to enquire about your accountant. Set up a face-to-face meeting with them before finalizing them for your business. You’ll also want to find out when and how you can get in touch with your small business accountant.
6. Ask how they bill for their accounting services
You’ll also want to find out how the accountant will be billing you for their services. Accountants usually charge their fees by the hour, which can range anywhere between $100-275. However, some accountants might want to work on a monthly retainer. Before you finalize on the right accountant, get quotes from multiple candidates to get a sense of the best price you can get for quality services.
Your accountant will play an integral role in the growth and success of your business, so you need to ensure that you make the right choice. A professional will be able to handle accounting for startups more efficiently and without errors. With the tips provided in this article, you’ll be able to find the right accountant for your business.
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