When it comes to running a small business, choosing the right employees and contractors to work for you is essential. In the same way, choosing the right accountants to help you manage your business’s finances can help save you a lot of time and money in the long run.
You should therefore think very carefully when you are looking for a new accountant, as choosing the wrong one can have significant ramifications for your business. You need to choose someone who is good at their job, who can be trusted and who can guide you as your financial situation changes. Consider the following when looking for a new accountant:
If you want an accountant who really knows what they are doing, then you have to make sure that you consider their level of experience. In most cases, an accountant who has been practising for ten years will be much better at their job than someone who has just graduated from university. Look for someone with a very good reputation that has been built over time. Understand that although you may pay a higher rate for an experienced accountant, they will probably be able to work faster, which means that you won’t actually end up paying any more.
Any specialities they have
If you have something of a specialised business, or are in a unique industry, then you may need a specialised accountant to help you keep your finances in order. Most accountants are able to deal with general everyday tax matters, but most also specialise in certain fields. Choose someone who can help you with financial matters that are related to your business.
Where they are located
In the modern world, it isn’t uncommon to work with someone who you have never met. Like any other professional, more and more accountants are taking their businesses online, meaning that you might choose to work with an accountant from a completely different part of the world. Before making this decision, consider how it might impact your ability to share information, to keep your finances in order and to monitor your accountant’s progress.
Think about whether you actually need an accountant
Could a bookkeeper or a receptionist do the same job? A qualified accountant will cost a lot more to hire than someone who doesn’t have a degree in accounting, which means that you will end up spending a lot more. Think about hiring a general bookkeeper to keep your records in order, and then using an accountant to help you lodge a tax return at the end of the year.
Although choosing an accountant can appear difficult at first, a little bit of common sense goes a long way. Don’t be afraid to pay more for an experienced accountant, and always look for someone who understands everything they are going to need to do for your business.