As a business owner, you know the struggle of stretching yourself too thin by overseeing all aspects of your company. While you need to be the one in charge for the strategic planning and development of your venture, you can delegate some tasks to other departments and hire people to supervise them for you.
One business facet that you can turn over to someone else is the accounting department. You have the option to hire an in-house employee or partner with credible firms like Davie Kaplan for your tax and bookkeeping needs. By placing a person you trust to oversee the accounting process of your company, you can direct your energy toward coming up with sales and marketing strategies to boost your revenue.
Here are some tips that can help you choose the best accountant in Rochester:
Know Accounting Basics
It’s prudent to learn about accounting basics when looking for an accountant. You want to know that potential employees or partners can give you the services you need. It’s easy to get duped into hiring someone clueless about your industry or, worse, a person who doesn’t have the credentials and licenses.
These are the four primary accounting areas that you should know about:
- Business Advisory– The accountant you’ll be working with has knowledge about your business environment, tax situation, and financial statements. With this information, they can give you valuable insight and help you create a business plan for your company’s growth.
- Record-Keeping– Accountants are trained in creating and using bookkeeping and accounting systems, such as expense managing software, customized for your business. A well-thought-out system allows you to assess profitability, modify prices, keep track of expenses, stick to your budget, and spot trends.
- Tax– Tax compliance and tax planning are complicated topics. Accountants can help you obey tax laws, as well as reduce the overall tax burden that may be imposed on your business for shady practices.
- Auditing – The ultimate objective of this process is to assure banks and shareholders that the financial information you presented about your company is accurate.
Look for a CPA or Firm that Understands Your Business Needs
Not all Certified Public Accountants (CPAs) and firms may be proficient with accounting tasks for your industry. They have different specializations, and you should find one that focuses on your field and have the necessary experience with others in related trades. They can contribute the knowledge that they gain from working with similar companies for the betterment of your business.
Check their Services and Fees
Determine the services that they offer, as well as the corresponding fees that they charge for them. Generally, accounting firms provide tax and auditing services. If you’re looking for one that can manage all financial aspects of your business, find one that also offers bookkeeping, management consulting, and estate planning.
Other services that you may need include analyzing loans and finance transactions, reviewing financial statements, and managing investments. They can even represent you when meeting tax authorities.
Most firms charge by the hour while others opt for getting a monthly retainer. If you can, request for an estimate of the total annual charges for the services that they’re offering. It’s crucial to note that, while cost may have a significant influence on your decision, you should consider the experience and skills of the accountant as well since you may end up saving more time and money with someone who charges more but works fast.
Have a Personal Interview with Them
Once you’ve already collated a list of candidates, you should schedule an in-person interview with them. This way, you can see their personality first-hand and decide whether you’ll be comfortable with them or not. It’s also an excellent time to probe them more about their background and experiences.
Some questions you should ask include:
- Are you a CPA?
- Do you have a license to practice in this locality?
- Can you tell me about your educational background? Where did you earn your degree in accounting?
- Who are your clients? Can you give me their contact information for reference?
- What is your area of specialization?
- Do you prefer being contacted only during business hours or can I contact you at any time of the day for business-related emergencies?
- Do you belong to a professional organization?
Conclusion
An accountant is a valuable partner for your company’s growth. They oversee financial matters and help you make sound strategies for the betterment of your business. You should take the time to understand accounting basics to help you find the right accountant for your needs. Moreover, don’t be afraid to ask questions so that you can remove any hesitations you may have in hiring them.