Starting a Small Business

5 Questions to Ask Before Hiring a Small Business Accountant

5 Questions to Ask Before Hiring a Small Business Accountant

As a small business owner, you may find yourself in a conundrum where you're torn between the option of continuing to handle your own accounting or hiring a professional to do it for you. If it's in your budget, having a dedicated accountant is almost always the better option. The time and resources that having an accountant frees up are worth more than the cost, allowing you to focus on other important aspects of running your business. But before you hire just any accountant to trust with your growing business, there are some important questions worth asking.

Can You Work Remotely? 

One of the best ways to save money on an accountant (especially as a small business) is to hire one who will work remotely as opposed to setting up shop at your place of business. This way, the accountant is utilizing his or her own resources (computers, software, space) rather than yours. In most cases, there's no need to have an on-site accountant, and you definitely don't want to spend the money to onboard one as a full-time employee.

What's Your Industry Experience?

Consider your specific industry or niche. Ideally, you'll want to find a small business accountant who has specific experience in this industry. After all, there are nuances that are unique to each industry, and you need your accountant to be familiar with all of them in order to make the right decisions for your small business. Don't hesitate to ask a potential accountant for references from a similar business he or she has worked with in the past.

How Can You Help Come Tax Time?

Some small business owners will hire dedicated accountants and other professionals to help them out around tax time, but if you're looking to hire one on a year-round basis already, you might as well kill two birds with one stone by hiring somebody who can assist you with your taxes. For example, if you know you'll be working with independent contractors this year, consider finding an accountant who has experience in preparing and issuing 1099 forms to independent contractors and freelancers come tax time. The more you can maximize the use of your small business accountant, the better.

How Do You Charge?

These days, there are a number of different possibilities when it comes to how an accountant may charge for his or her services. Some, for instance, will charge a flat fee per hour regardless of the type of work they're doing. Others, however, may charge different rates based on the type of work they're handling. An increasingly common option offered by accountants to small business owners is that of monthly bundled services, where you pay a flat price each month for a combination of specific accounting services. Consider what type of payment option you're most comfortable with and begin your search there.

What Are Your Credentials/Certifications?

Last but certainly not least, you'll want to find out what specific credentials and certifications your accountant has. For example, are you looking to hire a QuickBooks Certified Pro Advisor? Are you looking for a tax accountant? Your criteria may vary substantially depending on your specific industry and the type of work you're looking to hire an accountant to assist you with. Either way, you'll want to ask for proof of these credentials before making a decision.

These are just a few of the most important questions worth asking any small business accountant before hiring one. Many of your bases will be covered by taking the time to ask these questions. Always look for third party review sites to get current client stories before you hire. From there, you can make a more confident decision regarding which accountant is best for your business.

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Jeff Donohoe, CPA

Jeff Donohoe, CPA

Jeffrey D. Donohoe CPA is a CPA based in Cleveland, OH. His firm J. Donohoe & Associates LLC has been providing quality, personalized financial guidance to local individuals and businesses. Their specialty is state and local tax (SALT) services and they work with other CPA firms throughout the country consulting on SALT issues. Donohoe & Associates provide tax preparation and accounting services, as well as audits, financial statement, and financial planning.

J Donohoe & Associates LLC
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