If you are looking to hire an accounting firm or CPA for your business – good for you! There’s so much an accounting firm can do for you and your business and it’s truly a worthwhile investment and you can actually end up saving money! But, there are some things you need to know before hiring an accounting firm to make the best of it, so we’re here to tell you what to look for.
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Know When You Should Hire an Accountant
How do I know if I need an accountant? The first thing you’ll need to know is when to hire an accountant or a CPA firm. Here are the situations you’d be better of with a professional CPA by your side:
- When you’re launching your business
- When your business is growing
- When you have foreign income or accounts
- When you are setting a financial plan
- When you’re analyzing operational costs or applying for funds
- When you have to deal with the government
- When you have been called for an audit
What an Accountant Will Do for You
Whether you are looking to hire an in-house accountant or a CPA firm, you should be sure they could help you in all shapes and forms. What should my accountant be doing for me? Here are the things an accountant could and should help you with:
- Choosing the right business model when starting
- Preparing a business plan
- Financial advising
- Choosing the right employment model for employees
- Payroll
- Financial planning and analysis
- BIll payment
- Tax preparation
- IRS audits
Figure Out Your Needs and Your Budget
The next thing on your list of priorities should be to establish your needs as well as your budget. Figure out what kind of help you will need from an accountant and what kind of accounting services you need. Also, consider your budget and whether you will benefit more from an in-house accountant or an accounting firm.
Accountant vs. Accounting Firm
How do you choose between an accountant and an accounting firm? Which is better? Well, that depends on your needs and your budget. For example, if you choose to hire an in-house accountant, be it full-time or part-time, you will ensure a certain dedication to your business. However, hiring an accountant tends to be costly when you factor in wages, employer payroll taxes, and other benefits.
If you are a small business that doesn’t have a constant need for accounting services or work or the budget to afford an employer, you can go with an accounting firm. Accounting firms do the same work accountants do at the friction of the price. If you are unsure which way to go, you can start with an accounting firm and see how it works for you.
How to Choose an Accountant
When you know what an accountant can help you with and you’ve established your needs and your budget, all there’s left to do is choose the best accounting firm or individual to hire. And, that, as you might find, will turn out to be more than a simple walk in the park. Here’s what to consider.
- Ask friends and acquaintances for referrals – It’s extremely helpful to know someone you trust has had a great experience with an accountant or accounting firm.
- Your accountant’s industry experience – While it’s not a must, especially when hiring an accounting firm, experience in your industry certainly is a plus and relevant. If someone has a proven track record in your industry, they will have a better understanding of it and they will be better apt to help you.
- How do they charge for accounting services – Do they charge a flat fee or hourly? Both are legit, you just need to be clear on that and whether the clock is rolling every time you call for advice.
Good Luck Finding the Best Accounting Firm or Accountant!
We hope we’ve prepared you well to choose the best accountant or firm for your business! This is an important step and if you choose well, you will be able to cut your costs and maximize your revenue. Good luck choosing!
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