Knowing that you have a small business accountant in your corner as an SBO can be a real comfort when it comes to bookkeeping and taxation. It removes the stress from you of trying to manage your business, and all the ‘nitty-gritty's’ associated with accounting principles, and tax rules and regulations.
Join us as we discuss how you can find a prospective accountant for your small business.
To start, let’s acknowledge that it can be challenging to find the right fit for your business. You have to entrust an accounting firm with your money, confidential information, strategic decisions, and ultimately your business’s success. If you’ve been burnt previously by an accounting professional, this decision can feel even more risky.
So, there it is. We know this is not something you want to take lightly, and frankly, we agree. That’s why we’re going to help you find the right business accountant, from an insider’s perspective.
What should an accountant do for your business?
Great question, and one that has been discussed amongst small business owners more times than we can count.
Since financial advisors play an important regulatory and compliance role in businesses, it can’t only be about the input of data into accounting software - there must be more on offer that would make these services worthwhile. What follows is a list of services that an accountant should offer your business.
Further helpful information: Top Accounting Problems A Small Business Faces Today
Ready to gain a deeper understanding of your financial situation? Reach out now and let us help you see beyond the numbers to drive your business forward.
Bookkeeping services
A good accountant will keep your transactions up-to-date and readily available for review, giving you access to a dashboard on their accounting system where you can check if your financial records are always accurate and organized. This frees up your time, allowing you to focus on growing your business and making strategic decisions without the burden of financial administration.
This level of meticulous financial oversight ensures that you are always prepared for audits and can make financial decisions with confidence, ultimately contributing to the stability and long-term success of your business.
Payroll
The right accountant uses top-tier payroll systems to ensure timely and accurate payment of salaries and payroll taxes, providing you with significant peace of mind. By ensuring that payroll is handled with utmost accuracy and efficiency, you not only protect your business from potential legal and financial penalties but also strengthen your reputation as a reliable employer.
Reconciliations
A qualified accountant will maintain vigilant oversight of your financial accounts and flag unusual transactions. By reconciling all accounts and highlighting any abnormal transactions for your review, it provides a meticulous oversight that guards your business against financial discrepancies and potential fraud.
This proactive approach ensures that your financial documents are accurate and trustworthy, enabling you to make informed, strategic decisions confidently.
Preparation of financial statements
This is really the pinnacle of what an accountant should work towards for your business - the production of highly accurate, verified, and clear financial statements. Every bit of work that is done, rolls up into this important function because it is a reflection of your company’s financial health and future viability.
As with most things in life, the saying: ‘Garbage in, garbage out’ applies here too. Your accountant must be able to produce accurate, quality documents, such as cash flow reports, income statements, balance sheets, accounts receivable and payable reports, reconciliation reports, and any other document that you need to make business decisions.
Preparing financial statements on your own has been made easier for small businesses by accounting software such as QuickBooks Online, Xero, Sage, and others, but these software programs will only produce the statements according to the information you put in.
Therefore, the skilled eye of an accountant is still needed to spot mistakes, incorrect categorization of business expenses, and cash flow problems.
Ready to focus more on growing your business and less on financial paperwork? Contact us today to ensure your transactions are expertly managed and always audit-ready, freeing you to make the strategic decisions that matter. Let us take care of the details, so you can take care of your business.
Tax Compliance and Resolution
Bookkeeping services and taxation services should really go hand-in-hand if you are going to have a cohesive picture of your financial situation.
It’s highly beneficial for you as an SBO if you can have your tax returns prepared by the same person who does all your other financial processing.
A Preparer tax identification number is necessary for anyone who represents you with the IRS, and it is your responsibility to check that they have one.
Furthermore, business taxes are usually more complex than individual taxes, involving business tax laws, and tax planning is often necessary to ensure you can meet your tax obligations. You can’t wait until tax season rolls around to hear that you lost money because you didn’t implement a certain tax strategy.
Cash flow forecasting
In days gone by, cash flow forecasting would have been considered advanced financial services, along with strategic financial analysis, but today it is a cornerstone financial management service offered by top accounting firms.
The ability of a Chief Financial Officer to take a good, long look at your cash is a critical component of what is called: ‘virtual CFO services’. This can be done weeks or years in advance, depending on your business goals, and can be used to answer powerful questions such as, ‘Can I afford to hire full-time employees’, or ‘Can I increase the marketing budget’.
The degree to which small business accounting includes this service can vary from firm to firm. However, it is worth discussing it with your shortlisted firms because this service can be a game changer if you have your sights set on rapid business growth.
Further helpful information: Cost to Outsource Accounting Functions: Small Business Accounting
How to find the right accountant for your small business
After discussing the basic services that should be on offer to you as a small business owner, it’s time to go through a step-by-step process you can use to make the right decision for your business.
1. Make a list of tasks you would like to see the accountant fulfill
After reading through our suggestions for basic services, you’ll have a pretty good idea of what an accountant can do. However, your business and industry may require additional services that we haven’t mentioned.
Regardless of what your circumstances are, it will help you prepare for your search if you have a list to work from.
At first, you’ll probably write down all the things you would like to get rid of (such as data input), and then you’ll think of all the things that have gone wrong, that you’d like to fix, and eventually, you’ll get to the things you’d like to have in your business.
This is usually how it goes when you start this exercise, and that’s perfectly fine. Write it all down - you’ll refine it later.
2. Decide what kind of accountant you need
All accountants are the same in that they must have a bachelor’s degree in financial management or some similar degree, and they must have passed the CPA exam with a recognized institute. But this is where the similarities will end.
Many small business owners aren’t aware that there are accountants who specialize in certain functions such as forensic accounting, management accounting, and auditing, to name a few. If your specific industry requires a specialized accounting skill, you will need to dig a little deeper to find the right person. Industries that may need specialized skills include:
Oil and gas
Agriculture
Non-profit organizations and churches
Logistics
Restaurants
3. Speak to other businesses in your community
After you understand more clearly what you need, this step can be hugely helpful in making a good choice. Speak to other similar businesses in your area, and find out whom they can recommend. This exercise will be insightful for the following reasons:
They will tell you who to avoid because they’ve had a bad experience.
They can give you an idea of what works for them and what obstacles they’ve had to overcome to get the right fit.
They will give you an honest recommendation of whom you can contact. When someone is willing to give a referral, it's usually because they trust the services of the business or person.
They can tell you who is particularly good with tax preparation, local tax laws, and other tax services.
They will save you a lot of time and research work.
4. Search local results for accountants with strong reviews
Google’s local search results target services in your area and will provide you with a list of names of accounting firms or independent accountants.
Not only will these search results provide contact numbers, addresses, and photos of the business, but also customer reviews. Reviews provide important information about the experience other businesses have had with the accounting firm.
Look out for the following red flags:
No reviews, or a short time in business (unless they are a new firm with experienced accounting professionals)
Lack of response to negative reviews. Businesses that care about their reputation are willing to comment on both positive and negative reviews.
A lack of information about the business such as who owns it, where it’s located, and what services they offer.
Take particular note of detailed reviews such as these for Hall Accounting Company:
“Hall Accounting has always been accurate, prompt in responding and answering questions, and very user-friendly and efficient in their document sharing processes. I enjoy our Zoom call meetings that their team spends time in going over filings and reports. Their team helps me understand the details of how to track expenses and utilize my deductions to my advantage.” (James Jeffrey III)
“Wonderful experience at Hall Accounting. Jeremy was awesome. He’s very knowledgeable, organized, and efficient. He was prompt with responses to all of our questions and got our taxes done in a very timely manner. Would highly recommend Jeremy for all of your tax needs- big or small!” (Lauren Kelling)
Between the referrals from your network and a Google search, you’ll soon get an accurate picture of who is offering reputable and reliable services. If not, you can also contact accredited organizations like the AICPA & CIMA for a list of their members.
Conclusion
As a small business owner, you can sometimes be stuck in a difficult scenario where they feel you can’t afford a certified public accountant to assist you, but you instinctively know you need one.
It’s definitely a good idea, as we’ve discussed, but it’s also crucial that you do your homework when you hire an accountant because not all firms offer the same accounting services.
With our step-by-step process, you can find, and hire the perfect small business accountant.
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