Knowing when to hire an accountant is just as important as knowing how to find the right one. As a small business grows, hiring an accountant becomes necessary when its financial responsibilities become more complex. Signs that it’s time to hire an accountant include increasing revenue, expanding operations, dealing with complicated tax issues or simply feeling overwhelmed by financial tasks.

• Understanding which skills and qualifications are required and which are preferred can help you determine the best-fit candidates.
• At the end of the day, hiring an accountant can start a fruitful relationship with a financial consultant.
• Look for someone with whom you can build a relationship that will grow with your business.
• But handling finances can become overwhelming in no time — even the tiniest financial recordkeeping mistakes can result in a headache.
• Speaking to other small business owners about their experiences can be a great way to find the right accountant for your needs.
• By providing these insights, accountants can help business owners make strategic decisions to drive the company’s future success.

Compare your needs to an accounting firm’s offerings.

By working together closely and communicating openly and honestly, you can be sure that you’re using their expertise to help you make the best decisions for your business’ success. But there are some steps you can take to ensure that you end up with a great match, whether you decide to hire a CPA or a general accounting professional. Unless you’re an ex-accountant turned small business owner, you’ve likely wondered if hiring an accountant is the right move for you and your business. While hiring an accountant isn’t a requirement, it can be a valuable investment if you need it. To determine your needs, you should also consider factors such as your company’s size, the volume of your financial transactions and your budget constraints. Remember that the right choice will give you the optimal balance of expertise and affordability, ultimately contributing to your business’s overall success.

Consider recommendations from other small business owners

Explore all the resources you need to hire an accountant — including ways to identify the right skills, write a job description, and ask detailed interview questions. Just because you can’t afford an accountant doesn’t mean you need to miss out on all the benefits of having one. With the help of accounting software, you can reap the benefits of streamlined accounting processes, from calculating tax deductions to tracking expenses across all your accounts. Once you’ve decided on the best accountant or accounting firm for the job, it’s time to begin onboarding them to your business. At this time, you must inform your new accountant of any reporting preferences you have, as well as anything else you’d like them to know about your desired accounting processes. You should also check out the best job posting sites for employers, including ZipRecruiter.

Frequently asked questions about hiring an accountant

• Managing your business’s finances can be complicated and confusing if you don’t have a background in business accounting ― even if you have the best accounting software.
• Robust auditing promotes financial security, compliance, and awareness, enabling companies to grow without hiccups.
• Take time to thoroughly evaluate multiple qualified candidates or firms to find the best fit.
• Andrew Lokenauth has over 15 years in leadership roles across Wall St., tech, and start-ups, having held roles at Goldman Sachs, Citi, and JPMorgan Asset Management.
• The cost of hiring a CPA also increases the more complicated your return is and the more time that person has to spend on it.
• Unless you were an accountant in a previous life, you likely need a certified public accountant.

Whether it’s finding great products or discovering helpful advice, we’ll help you get it right (the first time). Forty-seven states (plus Washington, DC), Puerto Rico, and Guam participate in CPA Verify, an online repository of information about licensed CPAs and public accounting firms. Search the CPA Verify database or your state’s board of accountancy website to verify the credentials of a CPA. Here are answers to some typical questions business owners ask when they’re considering hiring an accountant. It’s a good idea to meet or at least speak with your accountant every month.

Should Small Businesses Use a Tax Preparer?

• Although hiring an accountant is optional, they can be an enormous help with reviewing financial records and filing taxes.
• If your business has outgrown spreadsheets or fallen behind on its accounting tasks, it might be time to hire a professional.
• Knowing how to hire an accountant includes thinking about your business needs, determining if a full-time hire is necessary, and asking the right questions when interviewing a candidate.
• At a minimum, you want your small business accountant to have relevant certifications.

Many state boards of accountancy and state CPA societies maintain online directories of members or can provide a list of tax pros in your area when asked. Not every CPA prepares taxes, so you may need to do your own research or make a call to see if the people on your list provide the type of tax services you need. If you recoil at the thought of preparing your own tax return and how to hire an accountant wonder how you can find a good certified public accountant (CPA) or tax professional, you’re not alone. According to the IRS, about 58% of the more than 138 million tax returns e-filed through November 22, 2019 (for the 2018 tax year), were prepared by a pro. Yes, self-employed individuals can benefit from an accountant’s advice on tracking business expenses and much more.

Questions to ask

CPAs have gone to school and passed licensing tests to prove they are experts in their field. They are qualified to provide your business with financial advice and to process your financial documents. One of the main challenges is identifying key skills and knowing what to test. A small business owner’s life is full of day-to-day responsibilities, from bookkeeping and taxes https://www.bookstime.com/ all the way down to hiring employees and marketing products. But if crunching the numbers becomes too time-consuming and overwhelming, it may be time to consider hiring an accountant for the job. Explore all the resources you need to hire an accounting professional — including ways to identify the right skills, write a job description, and ask detailed interview questions.

Hiring accounting professionals

However, the IRS maintains a directory of PTIN holders—such as CPAs, enrolled agents (EAs), and attorneys—who have current credentials recognized by the IRS. The directory also includes people who have completed the agency’s Annual Filing Season Program, a series of voluntary continuing education classes covering federal tax law and ethics. Search the directory by zip code to find a credentialed tax pro or CPA near you. We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024. With a network of thousands of professionals, staffing positions with the right fit isn’t a challenge for us.

Accountants can save you time and prevent costly mistakes.

If you’re ready to find the right accountant, contact TGG Accounting today. Forensic accountants specialize in investigating financial discrepancies and fraud. Accountants meticulously record all financial transactions, ensuring accuracy and completeness in the company’s financial records. At a minimum, you want your small business accountant to have relevant certifications.

• You can find accounting software services online, with options ranging from software to live accountants who are there when you need them most.
• For full-time, in-house accountants, the cost is determined by their salary, which can range widely depending on their level of expertise and the complexity of the role.
• Once you’ve decided to hire a small business accountant, the next step is to find the right person for the job.
• Start by making a list of priorities—the items that need attention right away, and the ones that will need to be addressed within six months.

And while using do-it-yourself accounting software can help monitor costs, the benefits of hiring good accountants extend far beyond crunching numbers. When you hire an accountant, you make an investment in proper bookkeeping and fiscal management. It may make sense to hire an accountant by the hour when your business is just starting. But, as your business grows, it may make sense to bring a full-time accountant onto your team. Full-time accountants are better able to be proactive rather than reactive with your finance management, which can lead to long-term financial success for your business.