One of the first things you should do after starting your business is to hire the right accountant. However, it is not as simple as following a recommendation; Because accountants are all very different, the ideal small business tax accountant for a friend or family member might not be the best fit for you; So, it’s important to do some research, make a checklist, ask questions, look into your options, and choose carefully. Here are ten helpful hints to get you started.
Ensure that the small business tax accountant you choose is qualified. Anyone can be an accountant, but make sure your accountant is a member of one of the three main professional organizations: The Association of Chartered Certified Accountants, The Chartered Institute of Management Accountants, or The Institute of Chartered Accountants; If something goes wrong, you can get help from their professional organization or institute.
Choose a small business tax accountant who meets your needs. There are many different kinds of accountants. Know what the various kinds of accountants can and cannot do for you; Consider the things that are significant to you and your company because your accountant will likely serve as your primary business advisor and may even serve as a sort of unofficial finance director for small businesses.
Take a look at their storefront. Because it is where they advertise their products, an small business tax accountant website should provide you with an idea of how seriously they take various aspects of their job. Make sure that things like tax advice are taken at least as seriously as “compliance” work like filing documents correctly and on time, as tax advice will save your company money.
Concentrate on fixed fees. Many small business tax accountant still charges an hourly rate, which can be very difficult to budget for. Some accountants will provide an estimate for the year, but be aware that estimates are just that and can change. It is difficult to compare small business tax accountant rates like for like. If you want to confidently budget, ask for a fixed fee that covers everything. However, make sure the fixed fee is written down and includes everything.
Obtain multiple quotes without going overboard. It is sensible to obtain comparison quotes; however, it is recommended that you limit the number to three or four because it is very easy to become overwhelmed by an excessive amount of information. Talk to a few to get a feel for prices; however, it will be counterproductive if you don’t schedule a week of accounting meetings.
Because it’s personal, pick someone you like. You probably have it right if your gut says that “this” accountant “understands” and cares about your business’s success, as accountants rarely do well in sales; follow your gut because this will be a significant and long-term relationship.
Maintain complete control. It is frequently a bad idea to entrust everything to your accountant. For instance, small businesses greatly benefit from performing their bookkeeping, which will certainly reduce your fee.
Be a little bit more visionary. The fact that an accountant works next door to your business does not necessarily mean they are your best option, and it is certainly not a sign of quality or convenience; With today’s information technology, we can look into options much further afield. If you find a great small business tax accountant who is willing to work for you on the other side of the country, don’t feel limited to your local area.
You aren’t stuck. It is simple and painless to switch accountants if you make a poor decision and are dissatisfied with your current one. When dealing with clients who want to move, which is usually the case, accountants should act professionally.
Don’t put it off until the last minute. You will settle for a compromise if you wait until the very last minute to hire a small business tax accountant. Before putting one in place, don’t wait until the business has been in operation for a year. Prioritize hiring an accountant because there is significant work to be completed from the beginning.
Having the right small business tax accountant for your business won’t guarantee success, but at least you’ll be on the right track if you choose wisely and give yourself time to consider your options.
