For small businesses, Hiring an accountant is a significant and daunting task.
If you are a new business startup, Hiring an accountant could be a vexing process for you; however, if you ask the right questions, it is a much simpler task. So to assist you to find the right accountant for your business, below are a few questions that you must ask before hiring an accountant Services:
1. What Kind of Clients Do You Work With?
You want to ensure that your accountant knows your type of business. Different businesses have distinct protocols to follow. To exemplify, a restaurant has certain rules to follow for tips and wages, the construction business should deal with the issues relates to the contract workers, and the real estate development fund will have different criteria about the way income is reported. You must look for an accountant who has experience of working with another business like yours and understand the ins and outs of the industry.
2. Will you be available Year-Round?
Some of the accounting firms do not open after 15th April and reopen only for the following tax season. However, when you are running a small business, you will be in need of help all year. If something comes up, you would not like to wait until tax season to get your issue addressed.
3. What is your experience with the IRS?
According to some people, it is important to hire a certified public accountant rather than an EA, or enrolled agent, as CPAs have more certification requirements. As CPAs are state-certified and have training in such areas as financial planning and bookkeeping Servies. EAs are certified by the federal government to manage taxes and they are often former IRS agents having extensive experience dealing with the audits. They may have much inside knowledge related to the working of IRS. On the contrary, CPA is likely to have more experience with broader financial planning issues. Despite, concentrating on the certifications, focus on the facts that how the experience of your accountant is relevant to your business.
4. Who will Handle the Work?
Many times, the accountants outsource the work to a third party. We cannot conclude that their services are bad, but you have to be sure that they are forthright about who is doing the entire work. If you intend to talk to the bookkeeper who is the third party, it could be difficult to speak with him directly.
5. Are you a Conservative or Aggressive Accountant?
Some accountants intend to write-off everything that they can do possibly; however, others take a conservative approach. It is crucial to figure out where you fall on the spectrum and look for an accountant who agrees with your philosophy. If an accountant mentions to you that he specializes in locating the red flags that may trigger the audits, they could be hesitant to increase your deductions. Like, some accountants believe taking home office deductions may be a red flag to the IRS.
6. How do you bill for the Services?
Some accountants charge as per the hour; others bill a flat rate. If you intend to take a hands-on approach to the booking, rates per hour could be better as you will not have much continuous work for an accountant. Ensure to get an estimation of the likely fees of an accountant. You must give them a copy of your previous year’s tax returns so that the accountant may familiarize himself with your business before giving a quote.
7. How you Can Manage the Work with Multiple Entities?
A skill that all accountants do not possess is to handle more than one entity under a single name. So if you have multiple entities under your name, ensure that you hire a person who may handle them simultaneously. If you are an owner of the rental property as an LLC and a retail store registered as a C-corporation, then you will require an accountant who may coordinate and track the money moving between those entities.
8. Which Tax Programs Do You Opt?
Although you must not choose accountants based on the tax programs that they use, it is a wise option to ask them this question. QuickBooks is used commonly for small businesses; it means your information is likely to be easily transferred between accountants. The accountants, who make use of the uncertain tax software, will not alter the quality of the work, but it could make it tricky to switch accountants.
9. What Will Be the Frequency of Communication of Tax Issues?
When it comes to the frequency of communication for tax planning, every accountant will be different. You may ask about the prospective accountant’s approach and ensure that you are satisfied with the degree of the communication.
10. Can your Accountant Speak Your Language?
The final question is one to ask yourself. When it comes to the financial lingo, if you are not a whizz, your accountant is required to understand this and must be enabled to communicate with you in a clear and concise manner. The accountant must not be the only one who knows where the company stands financially.
Hire the best Accounting Partner for your Business
To assess the suitability of potential accountants, you may ask these questions as the initial point. Consistent questioning will assist you to spot the trends and the differences in the answers, providing you the firm basis to take the decision.
It is worth spending time and effort to ensure that the hiring and Accountant best matches your requirements since you will be linked with that accountant for many years.
Reliable Melbourne Accountants is a leading Accounting Firm in Australia that specializes in assisting small businesses with all of their accounting needs. We provide a team of financial experts who work seamlessly with powerful artificial intelligence to handle every financial function of your business with speed and accuracy.
Try Reliable Melbourne Accountants today!