subject: How To Choose A Small Business Accountant [print this page] If you don't take your time when choosing a small business accountant, you could end up with someone that you want to get rid of, but who has detailed knowledge of your personal data. That's a situation that too many people have run into, myself included.
One of my goals has been to help owners and CEOs make important decisions. I believe that others can learn from my experience (mistakes) and choose the right accountant the first time around. That way, everyone can be happy.
First, you must thoroughly consider your needs. You might be able to make do with a bookkeeper. You will, of course, need someone that monitors the daily books, records that financial information and creates monthly or quarterly statements.
But, you or your other employees can be responsible for listing that tedious data in the appropriate place, which will allow your small business accountants to create more detailed reports and tax documents. They can also advise you about problems that they see, where your "leaks" are, so to speak.
All businesses have a tendency to overspend in some areas, while under-spending in others. A good small business accountant is more than a bookkeeper. He or she is, or can become, your financial advisor.
Thinking that you don't need a financial advisor is a big mistake, albeit a common one. Some owners think that their companies are too small to need that kind of professional advice. If you think that way, consider this. As long as you think small, your company will continue to be small. Isn't your goal to grow?
Depending on the type of business that you are in, growth may require you to invest profits in other businesses. When you are interviewing potential small business accountants, ask them about their expertise in investment guidance.
Find out about their technological know-how, too. There is something to be said for experience, but the older guys are not up to date on the latest "mistake-proof" software programs.
Older established professionals are a good choice, as long as they stay up with the times. The advantage has to do with the connections that you can make. Today, most professionals take advantage of networking. It helps them get referrals and they are more than willing to refer their contacts to other professionals.
You might even be able to find the right small business accountant by talking to your own contacts. If your friends are happy with their accountants, then you should be, too.
