5 Things You Need to Know Before You Hire that Accountant
Accountants are a crucial part to any business success. The key is finding the right professional(s) to provide the services your business needs. You as the business owner/manager need to educate yourself on the questions to ask and the services you need. I realize that can seem a little overwhelming, but here are 5 things you need to consider before you hire that accountant:
- Not all accountants are equal. The accounting profession is full of a variety of specialists and you need to understand which strengths fulfill your business’ needs. The accounting profession is often misunderstood and often believed to only refer to the tax aspects of a business. In reality, tax accounting is only one part of the accounting profession. There are many more aspects to running a business that involve accounting other then just tax preparation, such as job costing, budgeting, ratio analysis, etc. You may find that multiple accountants are needed to meet the diverse needs of your business.
- Ask for referrals. Talk to other business owners and inquire about the services they receive. Not every business has the same needs from the same types of accountants. While there are some basic accounting services we all need, each industry has its own unique aspects to be considered as well. Finding an accountant that understands your industry is important. Getting the perspective of other clients is priceless because they will share their experiences.
- Understand the needs you have for your business. Sometimes this can be the biggest challenge, but work with your local SBDC (Small Business Development Centers) or other Entrepreneurial support agencies. They can assist you to better understand what types of questions you should be asking your accountant and the services you should be receiving to determine the right fit.
- Educate yourself. Sometimes we assume that our accountant will “just take care of us.” Accountants are not miracle workers; they strive to provide you the best services they have to offer. You need to also hold yourself accountable to be an informed user of accounting services. You don’t have to be an accountant, but you should understand how to use the financial data to make good business decisions. As well as identifying some trigger points when things just don’t seem to make sense financially.
- Industry and personality. The knowledge of your industry is a key factor in determining the fit of your accountant. They won’t be the industry expert that you are, but they should understand some of the basic accounting details of your industry. An informed accountant with experience in your industry can help you from their past interactions with clients in similar industries. Your accountant will become a confidante of yours and know the interworkings of your business. It is important that you feel comfortable in disclosing the details to them.
Hiring accounting professionals is an important key to the success of your company. There are many accountants, but they are not created equal. They are like any professional group; they will have specialties in variety of areas and industries, so it is important that you find the right fit for your specific needs. Due your due diligence and the relationship will serve you well.
Pam Newman, Author, Speaker, Certified Management Accountant, Entrepreneur, Advanced Certified QuickBooks ProAdvisor – Financial, Enterprise and Point-of-Sale, President of RPPC, Inc. www.rppc.net, pam@rppc.net , 816.304.4398.
