As a small business owner, you juggle countless responsibilities each day to keep your company running smoothly. From managing daily operations and overseeing staff to growing sales and pleasing customers, your to-do list never seems to end. With so many pressing issues demanding your time, one task that often gets pushed down the priority list is managing your company’s finances. While it may not seem urgent, getting your finances in order is one of the most critical things you can do to ensure the long-term success of your business. That’s where bringing on an experienced accountant for hire can make a game-changing difference.
Having a qualified accountant on your team manages the money matters so you can focus on your core expertise of delighting customers and driving growth. An accountant not only handles essential bookkeeping, taxes, and compliance issues but also provides the type of high-level strategic financial analysis and planning that transforms a good business into a great one.
Why Hire an Accountant?
Before diving into the hiring process, it’s important to understand the value a small business accountant brings to your company. Though it may seem unnecessary at first, partnering with an accountant provides critical benefits that far outweigh the costs. Here are some of the top reasons to hire an accountant for your small business:
- Financial Accuracy and Compliance: Accountants ensure your financial data and statements follow generally accepted accounting principles (GAAP) and adhere to federal, state, and local regulations. This protects your business from costly penalties and audits down the road.
- Tax Preparation and Planning: From quarterly income taxes to yearly payroll and sales taxes, accountants handle tax filings and payments seamlessly. They also identify deductions and credits to minimize your tax liability.
- Time and Efficiency: Attempting to manage your books while running your business leads to wasted hours and costly mistakes. Accountants handle bookkeeping and financial management tasks so you can focus on your core business.
- Strategic Business Insights: Beyond number crunching, accountants analyze your finances to provide tailored recommendations for reducing costs, improving cash flow, or funding growth. Their strategic guidance helps boost your bottom line.
With an accountant by your side taking care of critical money matters, you gain peace of mind knowing your finances are handled accurately and efficiently. This gives you more time and energy to focus on sales, marketing, and daily operations.
Which Type of Accountant Does Your Business Need?
Once you recognize the immense value of hiring an accountant, the next crucial step is determining what type of accounting professional best fits your small business needs. Accountants can take on plenty of time-consuming tasks, and with various specializations and credentials available, you must know exactly what type you need. Knowing what tasks you must delegate will help you make the right match.
Certified Public Accountants (CPAs)
This is one of the most common and versatile types of accountants for small businesses. Each state licenses CPAs after passing very rigorous two-day licensing exams. Their credential represents the highest standard of accounting proficiency and expertise. CPAs also help larger businesses keep their finances in order.
CPAs can perform a full range of essential accounting services, including business audits, tax preparation and planning, financial statement analysis, forecasting, consulting, and more. Most small businesses benefit greatly from partnering with a CPA to ensure financial statements are fully compliant, taxes are optimized, and strategic business insights are provided.
Management Accountants
In contrast to public accountants, management accountants are employed internally at a company rather than serving clients. Their primary role involves supporting management through budget preparation, cost management, financial performance analysis, data-driven decision-making, and even business overhauls.
They are strategic partners that provide the financial insights executives need to set goals and objectives that further business strategy. This makes them ideal for small businesses focused on growth and expansion.
Forensic Accountants
Forensic accountants are experts in compliance and legal business structures. They can provide invaluable risk management for small business owners concerned about fraud. Through detailed investigative audits and data analytics, they detect irregularities or suspicious activities in financial records that could indicate fraudulent behaviors like embezzlement or misreporting.
Catching problems early minimizes potential loss, making forensic accountants a prudent investment for many businesses.
Auditors
Auditors primarily focus on thoroughly reviewing a company’s financial documents, internal controls, accounting policies, and procedures to verify compliance with standard accounting regulations and practices. Typically, when businesses want to lay the foundations for better business decisions, they first turn to auditors to see the business context more clearly.
This intensive review ensures the accuracy, completeness, and transparency of a company’s financial reporting. Audits also prepare businesses for outside scrutiny if they pursue funding options like bank loans, investors, or buyers.
Bookkeepers
Bookkeepers handle the critical everyday tasks that form the foundation of financial accounting. Typical bookkeeping services include recording transactions, reconciling accounts, processing payroll, generating invoices, and producing financial statements.
This type of accounting assistant provide baseline data that accountants then use for higher-level reviews, analysis, reporting, consulting, and compliance. Every business needs consistent bookkeeping.
Tax Accountants
As their name denotes, tax accountants specialize in tax preparation and planning for small businesses and individuals. Their expertise involves fully understanding federal and state tax codes to identify every allowable deduction and credit to minimize tax liabilities legally. They also stay up-to-date on the latest tax law changes that could impact their clients. Their specialized knowledge saves small businesses money each year.
Take time to decide which of these specialized services would bring the most value to your unique small business situation and objectives. Certified Public Accountants are the right fit for most small business owners if they need comprehensive accounting support.
Where to Find an Accountant for Hire
Once you determine the type of accounting professional best suited for your small business, the next step is finding qualified candidates to evaluate. With so many options these days, here are some of the best places to find an accountant for hire:
Online Platforms and Job Boards
Popular online job boards like LinkedIn, Upwork, and Indeed are go-to sources for finding talented accounting professionals available for hire. You can post your job opening detailing your qualifications and preferences. This casts a wide net to attract relevant applicants. You can also proactively browse profiles of accountants who are actively looking for small business clients.
Professional Associations and Networks
Industry associations like the American Institute of CPAs and the National Society of Accountants are excellent resources for finding credentialed, reputable accountants. Contact your local chapter or browse their online member directories. Many also offer shared lists of accountants accepting new clients. Joining local small business associations also connects you to fellow entrepreneurs who can provide referrals.
Referrals from Business Owners
Speaking with business owners in your circle is one of the best ways to find an accountant who is highly recommended by someone you trust. They can provide first-hand insight into an accountant’s qualifications, pricing, and work style. This narrows your search to proven professionals other small business owners confidently endorse.
Accounting Firms and Agencies
Local accounting firms provide outsourced accounting, tax, and advisory services for small business clients. Smaller boutique firms often provide more customized services and pricing. Larger regional and national firms have more extensive resources. Research options online, then set up initial consultations to find the best fit.
Key Traits to Seek in an Accountant
The hiring process goes far beyond simply sourcing candidates. You must also vet accountants carefully based on key traits and qualifications critical for success. As you interview potential hires, look for the following:
Qualifications and Certifications
Always verify credentials like CPA and Enrolled Agent (EA) licensure, which require passing rigorous exams and meeting experience requirements. Legal certifications confirm they have the education and expertise to perform required services. Accounting degrees and MBA’s demonstrate advanced financial knowledge.
Relevant Industry Experience
Look for an accountant with proven experience handling the books and taxes for other businesses in your specific industry. They will apply industry knowledge to provide tailored insights and solutions catered to your unique business needs.
Strong Client References and Reviews
Ask for referrals and client testimonials. Reach out to current clients to ask about their satisfaction working with the accountant. Online reviews also provide transparent feedback on an accountant’s quality of services, response times, consultation availability, and communication effectiveness.
Clear Communication Skills
Your ideal accountant should clearly explain financial terminology and answer your questions in an approachable way. You want an accountant who is invested in helping you understand the numbers rather than simply presenting you with reports.
Fee Structure and Pricing
Compare each accountant’s pricing and billing structure. To maximize value, look for fixed-fee and packaged services over hourly fees. Also, ask what technology and tools they use. Cloud accounting software and client portals help streamline communication and data sharing.
Step-by-Step Guide to Hiring the Right Accountant
Ready to hire your small business accountant? Follow these steps for seamlessly onboarding the right accounting professional:
Create a Detailed Job Description
Outline the accounting and advisory services you need, desired credentials, work hours, and pricing. This gives candidates a clear picture of expectations and qualifications upfront.
Post Job Openings and Source Candidates
Share your job posting on online job boards, small business sites, and professional networks. Also, contact your personal connections and local firms to source referrals and applicants. Cast a wide net.
Conduct Interviews with Top Applicants
Schedule intro calls and in-person meetings with promising candidates. Come prepared with questions covering their experience, communication style, technology, and billing practices. Assess their expertise and ability to explain financial details clearly.
Check References and Credentials
Take time to verify certifications through credentialing organizations. Speak with past clients and ask about their satisfaction levels. Look for any red flags.
Offer a Paid Trial Project
Before committing, consider hiring your top choice to handle a one-off project like preparing quarterly taxes. This allows you to evaluate the working relationship before signing a long-term contract.
Compare Final Candidates and Make Offer
Weigh the pros and cons of remaining candidates based on interviews, proposals, and reference checks. Extend a formal offer to your top accountant choice. Outline expected duties, hours, rates, and terms in an engagement letter contract.
Onboard and Set Expectations
Once hired, provide access to financial systems and documents. Set schedules for meetings and reporting. Communicate preferences for communication methods and response times when questions arise.
Red Flags When Hiring an Accountant
While the hiring process involves extensive vetting, remain vigilant of any red flags that could indicate an accountant lacks qualifications or integrity:
Lack of Proper Credentials and Certifications
Accountants should have a CPA license if providing services like audits and financial statement attestation. Confirm proper registrations are up to date.
Poor Communication and Availability
Quality accountants clearly communicate complex financial information and make themselves available for regular consultations. Marked lack of responsiveness or clarity may indicate issues down the road.
Unreasonably Low Fees
While fees are a consideration, drastically lower prices than average could reflect inexperience or poor quality of work. Make sure pricing aligns with qualifications.
Negative Reviews and Complaints
Pay close attention to any concerning complaints raised by past clients, especially issues relating to accuracy, responsiveness, and professionalism.
Rushing the Hiring Process
Reputable accountants will never pressure you to hire them prematurely. Be wary of those pushing to close deals before thoroughly vetting their background and fit.
Conclusion
As a small business owner, bringing on an experienced accountant for hire marks a major milestone in your growth journey. While the hiring process takes time upfront, know the investment will pay invaluable dividends for years to come through expert financial guidance and insights.
Finding the right accountant lays the groundwork for managing your finances smoothly and strategically scaling your business to new heights. Use this comprehensive guide to confidently hire the ideal accountant for your unique small business needs and goals.
For bookkeeping and accounting support, look no further than Wing! Our remote bookkeeping support professionals help in expense tracking/filing, payroll preparation, credit card reconciliation, and more.
Contact us today to learn about our bookkeeping assistants.
Aya is Wing Assistant’s blog manager. When she’s not wrangling content briefs, editing article drafts and handling on-page SEO, she is crafting messages for Wing’s other communication materials. Aya writes about SaaS startups, marketing for startups, search engine optimization, and pop culture.