5 Basic Knowledge for Selection of Accountant
The United States has a comprehensive set of accounting principles for tax purposes compare to other countries. That being said, accounting is highly regarded in every sector especially in terms of business and the most crucial stage it is needed is when one decides to own one. Your accountant is your business’ financial partner for life.
This is not to be taken lightly since the order and management of your finances is proportional to its status and growth. They should be able to advise you and come up with a proper business and financial table plan.
The basics of accounting includes bookkeeping, number-crunching system, monitoring of expenditures and tax returns. As a starter, you could have a lot of things in your plate and the possibility of leaving behind these important financial trails can get you into trouble. So it is safe to say that every business needs an accountant. In the process of your selection, you can refer to this guideline and take them into consideration as your reference point.
Always outsource your accounting needs
The consistency of an accounting method is not only appropriate for a business owner but critically needed as well. Before taking any measures in starting your business, an accountant will serve as your pedal and brake. They will keep your company running smoothly and reduce the risk if the need arise. You can’t be there to attend to records and filing all the time so outsourcing your needs will help you focus on the core of your business and leave the details to the pros. Be very specific with your firm about the delegation of responsibilities while having a constant contact for updates knowing that your business lies in the palm of your accountant’s hands.
This can also save you money because accounting firms will have the strategy that will benefit you from the business application up to the generalization of filing documents.
Specialization & Expertise
Choose someone who has viable insights to your business and industry. One good tip to find a good accountant is to get a referral from your lawyer. Lawyers and Accountants go hand in hand in the business. It will also be a good idea if these two personnel have a good working relation with one another. You also need to check with CPA society in your state for validities of accounting firms that you are planning to hire. Not all accountants are CPA certified mind you. Like finding a lawyer, similar overviews can be applied too.
Do a background check with the firm, research their websites and check for validity in their license.
Delegation of Roles
One of the primary roles of your accountant is to help reduce overall tax weight while making sure that you’re in compliance with the tax law of your country. They’re responsible for preparing your financial statements, ensuring that your company’s status is accurate, unbiased and ready for audit. By definition accounting services are divided into:
3 categories: Recording transaction, Assembly & Generating returns and Financial statements
These are the common words you will hear from them. But make sure that they also cater to the specific needs of your business. Things like estate planning, financial consultation, etc.
A variety of services will be an advantage if the firm has corporate edges as mentioned.
Know how much they charge for their services
Identify the range of quotes from different sources. You can even compare them using price-comparison apps or websites to get the best quotes without compromising the quality of service. Always take down notes about their credentials and sharpness they can put in your table.
These are the questions to ask your prospects:
1.Do you have a CPA Certification?
2.May I see your license to practice?
3.How long have you been practicing?
4.Do you have similar small-business clients?
5.What are your areas of expertise?
6.Are you available 24/7?
7.What are your charging fees?
Qualifications and Compatibility
Having an accountant whose style clicks with yours will generate a smooth flow of business. Since accountants are responsible for the back-of-the-house operations and help you make decisions for management. A good accountant will ensure that you have insurance and protect you from the perils and exposure to penalties. They should possess these 3 factors:
Relevance – they beget a great deal of influence to your decision and they avoid disorganized statements and documentations.
Reliability – there should be no room for error and prejudice. Your files must be dependable and same other way around.
Comparability – ensured by applying sound accounting policies overtime.
And must produce these certain qualifications:
1.Systematic record of transactions
3.Legitimate financial standing of the business that accounts a Balanced Sheet and Profit & Loss Account
4.Rational information needed for the business
3 thoughts on “How to find an Accounting Firm suitable for Startups”
Accounting has always seemed like something I wouldn’t understand, and was curious about how you would go about choosing someone to help you out. I never knew that you should check and see if they have a CPA certification. It would be nice to know that they are able to help you out, and have done everything necessary to get there.
I like your advice to get a range of quotes from different sources and compare them so that you can get the best quality of service for the best price. This would be important to ensure that you get the accounting services you need and fit it into your budget. In order to get quotes from various accounting firms, you’d probably want to go to their website, which could also provide you with information on their qualifications so that you can ensure you choose ones that will be able to help you.
My sister wants to start her own business, and I suggested she hire an accountant to help her with the finances. I liked how you said to choose someone that has insurance so I can be sure I’m protected from the perils and exposure to penalties. Thanks; I’ll share this with my sister to help her hire an accountant.