At the heart of any business is a good bookkeeping system. It's much easier if you have a top accountant working for your team. Here are five questions to ask before you hire an accountant for your small business or self-employed work.
What is your experience with business taxes?
Most company owners think of business taxes as a thorn in their side. It takes time during the year to do taxes. Then, you need to stop everything and set up payment schedules.
Smart companies have solid accountants who can help them save money. The best accountants also get tax payment schedules on track. Here's what is important: your potential accountant's experience with business taxes and the IRS.
Get someone who knows how to navigate the IRS and the business tax code. Then, you could lower your stress levels and focus more on running your company.
It's also worth mentioning that not all accountants have experience with business taxes. Just because someone has the letters CPA doesn't mean there will be experience with businesses.
Accountants come in all flavors and varieties. Some work mainly on retirement planning or personal taxes. You want someone with expertise in employment taxes, corporate tax payments and business expenses.
What kind of clients have you worked with?
First, learn if the CPA has experience with businesses. Next, find out even more specific details about the person's background. You should ask about the accountant's client history.
Know what is ideal? Someone with a long history of success in your company's field. Do you run a small business or a sole proprietorship? Look for someone with experience in this arena.
Is your company larger and looking to expand? Get help from someone who has a successful background working for places like yours.
Your type of industry is relevant to your financial procedures and taxes as well. Think about this. Your CPA has only worked for construction companies. But, you're a small café. Is this your best option? Probably not.
The whole point of hiring someone is to smooth out your business methods. Someone with experience can improve your company's bottom line. Hiring a CPA who's never worked in your field doesn't make sense.
Would you ask a random employee or stranger to go through your books? An experienced, expert CPA is the only one who is worth the extra expense.