Hiring an Accountant for Your Small Business

Why do you need an accountant? Why won’t a bookkeeper do? While there are several good answers to these questions, the simplest one is this: a good small business accountant does much more than just record transactions and generate documents – a good accountant analyzes, interprets, and translates data into useful information.

The key is, you must select an accountant that fits your needs. What’s important to you and your business? Personalization? Technological savvy? Understanding your industry? Consider raising the following questions in your quest to find a suitable accountant:

What services do you provide to small businesses?
There are several areas that accountants can work or specialize in. These can include audit, tax, bookkeeping, consulting, payroll, and financial planning. Find out which areas could help your business and make sure the accountant you choose has experience fulfilling those needs.

Do you have knowledge about my industry?
In many cases, the more experience an accountant has with a certain industry, the more insight they’ll be able to provide to your business. However, with areas such as payroll, industry knowledge may not be essential.

What types of services do you provide to others in my industry?
This question may open up other possibilities for your business. Other entity’s in the same industry may be receiving services that could be beneficial, but that you hadn’t thought of. This also gives you an idea of the accountant’s background and knowledge.

What type of technology do you use and how will that benefit my business?
Does the accountant keep a paperless office? Will your files be accessible through a portal? How can I access my financials? Exactly what role will the Internet play in data interchange? These are all important questions that need to be addressed prior to retaining an accountant.

How do you calculate your fees?
Most accountants have both hourly rates and fixed fees. If you plan on being a monthly or quarterly client, ask about the fee structure to see if you could qualify for a fixed fee. This saves you from paying separately for quick e-mails, faxes, or brief phone calls.