How to hire an accountant for your small business
How to hire an accountant for your small business

Small business owners often yearn for the day when they can focus on running and growing their business. Hiring a part-time accountant or even a full-time accountant depending on the workload could be the solution. This may be the only way to free yourself from the necessary financial paperwork that puts time constraints on you.

Hiring a small business accountant

Here is a snippet of tasks an accountant can take off your plate:

  • Quarterly and annual tax return
  • Provide financial documents for loan and grant applications
  • Act as a financial advisor
  • Do the payroll
  • Invoice processing and payment tracking

Why should you consider hiring an accountant

Why do small businesses need an accounting professional? Here are some great reasons why a small business owner needs an accountant (and not just for tax season).

Perfect financial statements and financial records

Hiring a professional to prepare financial statements means you’ll be able to get an overview of your company’s financial information at a glance. Without the ability to do regular financial analysis, you risk losing sight of your goals and deviating from your plans.

Comply with tax laws and maximize tax savings

When you’re busy running your own business, business accounting duties can get pushed aside. A good accountant can help you with tax planning, ensuring you get tax deductions when you file your taxes. Certified Public Accountants will also keep your business online by complying with the latest tax laws.

Business Management

By working with accounting professionals, you will have more time to focus on day-to-day business management tasks, rather than accounting tasks. The right accountant can handle all the required business taxes to help you with financial planning.

Apply for loans or grants

If you want to apply for a grant or loan, business financial information is readily available. Financial reporting and other business financial information is the responsibility of your accountant, who will produce statements as needed. The accountant’s services also lend a degree of professionalism to your company’s reputation.

Audit Representation

Chartered public accountants and accounting firms offer a significant advantage. You will be represented in the event of an audit. In fact, according to data from accounting firms, you are less likely to be audited if your statement indicates your professional relationship with an accountant.

Less stress

Tax returns? Cross them off your list. Accuracy of your bank account? Draw a line through that one too. Hiring someone with deep knowledge of the financial end of your business will help you worry less and focus on growing your business.

When to Hire an Accountant

Many small business owners put off hiring an accountant until it becomes painfully clear that such services are needed.

During this time, you may miss something. Perhaps there is an accounting system that could make your life easier. You may need tax advice. You may not have put your financial goals on paper.

If you’re not ready to hire a full-time accountant, consider starting with a part-time accountant. Many accounting firms offer these services and you may find that you save money.

Remember that the fees you pay to an accountant are tax deductible as a business expense. In fact, you may want to incorporate bookkeeping expenses into your long-term business plan.

How much does it cost to hire an accountant?

Costs vary depending on the extent of accounting services you require. Costs also vary depending on the level of education (certified public accountant with a college degree) and level of experience of the accountant.

If you hire a freelance accountant as a contractor, you should expect to pay at least $40 hourly rate. If you work with an accounting firm, you will pay between $100 and $250 per hour.

How to hire an accountant

How do you find that person who has the financial knowledge that matches the operation of your business? Financial needs and tax situations vary by business, for example, sole proprietors do not have the same needs as owners who have employees.

1. List the services you would like an accountant to provide.

2. Network with other business owners to find out which accountants or accounting firms they like, and why.

3. Armed with a list of accounting interview questions to ask, schedule an appointment. There may be accountants or companies that offer a free consultation.

4. During the hiring process, discuss fees, including likely fees per job, financial statements, financial reports, payroll, first tax filing, and any tax issues.

5. If you are running a new business, ask for accounting software recommendations as part of the interview process.

Duties of an accountant

Typical accounting services include cash flow tracking. An accountant manages bank accounts, manages invoices and payments, and records transactions such as payment for purchases.

Hiring someone to provide bookkeeping services can be an intermediate step. He can also ensure that you provide good records to an accountant.

Accountant Vs. Using Accounting Software

There are a number of top-notch accounting software choices out there. Accounting software can make your job easier and can also make your accountant’s job easier.

There are things that accounting software cannot do: A computer program is not going to advise you or give you advice on changing tax laws.

Independent vs. Full time accountant

When do you need a staff accountant?

In a perfect world, this freelance accountant or contract accountant will become your full-time accountant. You will get someone who already knows your business.

You may be able to justify hiring a full-time accountant when you add tasks. For example, you are going to hire employees.

Does an accountant save a business money?

Yes. You can make financial savings in the form of tax breaks that you did not use or by canceling accounting expenses.

Here’s one way to look at this decision: You may feel like you’re paying an accountant more than you would on your own. But remember that it would take you a lot longer to do the same job and you’re wasting time running your business.

Is hiring an accountant worth it?

Yes. Even if you only have stomach cramps and headaches at tax time. If you get your taxes wrong, there are consequences. Hiring an accountant or accounting firm will reduce your stress for you.

Image: Depositphotos

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