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When to Hire an Accountant – The Ultimate Small Business Accounting Guide

Sep. 18, 2020

Why should you hire an accountant for your small business?

Getting a professional to sort out your small business accounting need can be a lot of work.

This is because you want to be sure that your choice is right for your business type.

Most entrepreneurs also get confused about hiring the best accountant that would not be a financial burden.

In order to ensure that you make the right choice in picking the best accountant that will place your business on the path to success, you need to understand the unique characteristics of a small business accountant and how to find them.

What Do Accountants Do? 

when to hire an accountant for small business

Accountants are professionals who measure, process, and communicate both financial and non-financial information about clients and businesses.

Accountants have in-depth knowledge of bookkeeping, auditing, and analysis of accounts.

This is why they are complete finance experts.

An accountant is responsible for recording all business transactions as well as reporting general performance majorly through financial statements.

They are responsible for performing financial functions of a business as well as give the right financial counsel that is best suited for the business in question.

Accountants are responsible for bookkeeping, payroll services, Filing and payment of taxes, maximizing tax deductions, account reconciliation, invoices, cash flow management, keeping records of account payments, and receivables amongst other duties.

A good small business accountant does the following;

  1. Oversees financial records

Every financial transaction carried out in your business is tracked and recorded.

Doing this ensures that you are aware of any financial step taken in your business and you can keep track of your debtors and payment of your creditors.

Similarly, you can know when to file and pay your taxes as well as your employees when you have a good financial record.

  • Ensures data accuracy

This is done through proper bookkeeping and effective balancing of business accounts.

Here, all transactions carried out by your business ought to be correctly recorded as well as your account reconciliation.

Account reconciliation is the process of ensuring that the amount spent on your business matches the money leaving your account.

  • Interprets and analyzes records

In this stage, an accountant collates the data and brings out the financial implication of the records.

This helps in the report preparation.

  • Prepares reports

Reports are mostly done within a given period of time.

It can be weekly, monthly or quarterly, depending on the client’s request.

Nevertheless, a small business might not need to carry out weekly reports as their transactions are not as broad as big companies or industries.

The reports form a basis for financial advice by your accountant.

  • Advice

Accountants mostly advice their clients on issues pertaining to different financial aspects including; staffing and payroll, reducing cost of supplies, revenue generation and how to solve financial discrepancies.

How to Find a Good Small Business Accountant? 

hire an small business accountant

There are so many certified public accountants (CPA) near you.

To find the one suitable for your small business, there are certain routes to take.

There are so many ways you can go about finding a good small business accountant. Some of which include;

  1. Through referrals- You can make inquiries from other small businesses around you about the accountants they use, the services they offer and their overall performance.
  • Determine if they are right for your niche- Not all accountants are right for small businesses. It is best to hire an accountant with the right experience to ensure you get the best service for your business.
  • Make research- When you are referred to an accountant, it is also important for you to make your own little research so as to make a better informed decision.
  • You can get a good CPA through the American Institute of Certified Public Accountants directory.
  • Ask for a list of references- Ask your accountant to give you’re a list of a few businesses or clients they have worked with and reach them to find out how good the accounting services are before you go ahead to hire them.

10 Things to Look Out for Before You Hire An Accountant for Your Small Business Accountant

why choose n accountant

The importance of choosing the right accountant for your business cannot be overemphasized.

Getting the right accountant means getting it right financially.

Take note of the following criteria when choosing a small business accountant;

  1. Identify your business need- This is the first step to take before signing with a small business accountant. You need to know what services your business requires and what you hope to achieve. This would also serve as a guide in helping them serve your business better.
  • Ensure that your choice is a certified public accountant (CPA) – You have to be sure that you are hiring a professional to handle your business finance. This means that you need to look out for additional credentials and they are licensed to practice in your location.
  • Find out how much they cost- If you are not okay with their price, you should bargain with them to suit your budget.

Inquire about the pattern of payment and if it is convenient for you as well as any other charges you might be asked to pay.

  • Find out about the software and technology they use- Look out for accountants or agencies that use cloud technologies in handling some of their activities.
  • Find out the services they offer- Asides bookkeeping, payroll, reconciliation and taxation services, do they offer financial consultation? Note if the services they offer matches your business financial requirements.
  • Hire an accountant at the setup stage- During the period of setting up your business, you should hire an accountant who would oversee your expenditures, register your business with the tax authorities and carry out other financial set up activities.

When you hire a good accountant at the start, keeping records would be easier and research would not be in-depth since the accountant witnessed the process of setting up your business.

  • How good is their customer service- You should evaluate how their customer service is while sourcing for information about the company.
  • Hire an accountant with small business accounting experience
  • Hire a small business accounting firm with a record of integrity- Whether you are hiring an accountant or a CPA agency, you should ensure you are dealing with someone you can trust. This is why it is important to do your research and contact references.
  1. Hire a professional who is capable of doing more than keeping and maintaining your financial records. Sign a small business accountant who can advise you about the best financial steps to improve your business.

Is it Mandatory for Every Small Business to Hire an Accountant?

Why you need a small business accountant

Every small business with the intention of expanding or maximizing profit needs an accountant.

The reason is because you cannot manage the financial aspect of your business the way an expert would.

The results will definitely be different.

Using an accounting app might seem like the most affordable option but it might be very costly to your business, especially in the long run.

Your best option should be finding the right small business accountant that is highly affordable and can match your budget.

At What Point Should You Hire an Accountant?

Hiring an accountant should be the next step to take after planning the aspect of business you intend to venture into.

The mistake many small businesses make is hiring an accountant after their business is already running.

Adopting small business accounting services at the beginning stage of your business gives you the best head start.

How Much Should a Small Business Pay for Basic Accounting Services? 

The amount a small business would pay an accountant depends on the budget set aside as well as the goal they hope to achieve.

Another major determinant is how well they are able to source for companies offering affordable small business accounting services.

This is why when sourcing for certified public accountants, a small business should consider affordable services from KAFT CPA.

Introducing KAFT CPA?

KAFT CPA is a highly affordable accounting service firm that targets small businesses and helps them make informed financial decisions.

They offer a wide variety of accounting and bookkeeping services ranging from; tax filing and payment, payroll services, account reconciliation, and financial advice.

Why KAFT CPA is Your Best Choice for Small Businesses Accounting in Canada?

Small business accounting is always easy when the right accounting firm with experience in management, high integrity, and a good client-customer relationship is hired.

One of the keys focuses of KAFT CPA is to help small businesses to achieve their financial goals at a very affordable price.

This means spending less for rapid growth.

Our team of certified public accountants has the full capacity to cater for the financial needs of small businesses.

KAFT CPA ensures that you are at rest when it comes to your tax filing and payment, payroll duties, proper record keeping, and all financial aspect of your business.

This avails you the opportunity to focus on the other fundamental aspects of your business.

With KAFT CPA, you do not just hire an accountant for your small business, you hire an accounting consultant.

Need an accountant who specializes in medical practices, oil and gas, small business and more?
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