Top Five Things to Look for When Hiring an Accountant
If you own or operate a business, financial accounting is of paramount importance. While hiring an accountant will help you gain more tax savings and organize your financial affairs, it will also give you the freedom to focus on growing your business.
Accountants can also help you with tax filing, bookkeeping, payroll services and maintaining financial reports. However, with several professional accounting agencies out there, picking a competent accountant that will help you, can be quite a challenge.
To help you figure out who the right accountant is for you, we’ve compiled a list of the top five things to look out for when hiring an accountant.
1. Experience in the industry
A great accountant can make the difference between your company flourishing and just surviving. You’ll want an accountant who has a record of being there for small businesses and understands the unique challenges they face. You can always verify a person’s experience through references. You need to hear from other companies (and in particular, other companies similar to yours) that the accounting firm you’re considering has the required caliber and can live up to their marketing.
2. Knowledge of business and tax law
The accountant you have in mind must possess a keen knowledge of business and tax lax. Understanding the internal revenue code, financial accounting, licensure requirements as well as possessing general business knowledge must be a prerequisite for an accountant you are considering.
3. Ability to ask the questions you don't know to ask
Accounting is learning curve, and the skill needs to be practiced, in order for it to be effective. As a business owner, you may not be totally aware of the nuances of accounting. An accountant will help you avoid any financial hiccups you may face, by asking questions you may not have considered important.
4. Advise on business strategy and cash flow
Your accounts tell you the state of your business in numbers, not words. It provides the most vital information you need to understand how your business grows, makes money, where the profit of a business goes, and what your cash flow is. Your accountant must possess the ability to understand the aim of your business and how it functions and help you draw up a strategy to scale up operations, cut costs and boost profits.
5. Understanding of the day-to-day issues that concern an entrepreneurial business owner
An entrepreneur’s life is not enviable, at least in the beginning. It’s extremely easy to get discouraged when something goes wrong or when you’re not growing as fast as you’d like. No matter what stage of business you are in, the accountant you plan on bringing in should help you overcome any self-doubt by helping you improve cash flow management, improve business growth and work within a strapped budget.
If you’re looking for an accountant in Sterling Heights, Clarkston, Auburn Hills, Troy, Rochester Hills and the surrounding areas, reach out to John A. Sanchez & Company. We’re a leading full-service accounting firm that helps our clients build strategies, systems, and structures to maintain accurate records, meet current financial obligations and comply with tax reporting requirements, with our quality and personalized financial guidance. To learn more about our services, please click here. To get in touch with here, please click here.