Did you know that 75% of small businesses outsource more than half of their business including accounting to remain in business? Employing an accountant for VCFO services could simplify your financial operations without the high-cost of a full time CFO. But how can you find the proper accountant for these services? Let’s understand each step to make this process as simple as possible.
What Is a Virtual CFO and Do You Need One?
Virtual CFOs (VCFOs) offer solutions such as budgeting, risk management, budgeting and cash flow management. In case your business is expanding and you want somebody to enable you to make sound financial choices without the overhead of another worker then VCFO services could be for you.
This is particularly useful for small to mid sized businesses which can not pay for (or do not require) a full time CFO yet will need experienced financial advice.
Process for Hiring an Accountant in the U.S.
Here is how to hire an accountant for Virtual CFO services in the U.S.:
Step 1: Find Out What You Want From an Accountant
Step one when you hire an accountant for VCFO services is identifying your business needs. Not all businesses call for exactly the same degree of financial management. You might need assistance with everyday accounting responsibilities, long term financial strategy, or perhaps both.
When you understand your needs, you are able to more easily explain them to prospective accountants. So you can find somebody qualified but also appropriate for your business.
Step 2: Research Account Outsourcing Services
You should know what you need to research the options. The best way to employ an accountant for VCFO services is via account outsourcing services. These services provide a pool of competent accountants in different aspects of finance management.
When researching account outsourcing services, look for firms or platforms with a great reputation, verified reviews and transparent pricing models. Make certain they have practical experience with VCFO services. Some firms specialize in particular industries; find one that knows your business niche. For instance, in case you operate ane-commerce company, you may want to hire somebody with experience handling finances in that business.
Step 3: Verify Qualifications & Experience
After you've found candidates or firms to shortlist, confirm their experience and qualifications. Hiring an accountant for VCFO services calls for more than accounting skills. You need somebody who has experience in financial planning and business strategy - with U.S. laws and regulations.
Here’s what to look for:
- Education: Verify that the accountant holds related certifications, like a CPA license.
- Experience: Look for accountants having a minimum of five years experience ideally with small or mid-sized companies.
- Industry Expertise: You might want somebody who has worked in your market and knows the financial challenges specific to your company, based on your company.
- Technical Skills: Technical knowledge is key in VCFO services. Your accountant should be at ease with cloud-based accounting software and financial management tools.
Ask for references from businesses they have previously helped or worked with. This gives you faith that they can deliver results.
Step 4: Assess Communication Skills
The most important quality of a VCFO is excellent communication. This is a virtual role so clear and effective communication is even more essential. You need somebody who can lay out complicated financial ideas in simple English and also keep you updated about your business's financial health.
Check how well the accountant explains services during the interview or initial meetings. Are they concise and easy to understand? Do they answer your questions and allow you to feel comfortable in their approach? The basis for a successful working relationship is excellent communication.
Step 5: Discuss Fees & Engagement Terms
The cost of VCFO services is dependent completely on your business and the scope of work. Fees must be discussed upfront to stay away from surprises later. Some accountants charge a flat once a month rate, others work hourly. Be sure the pricing structure fits your budget.
Additionally, specify the services provided for the fee. Can they actually do daily accounting or are they more focused on long term financial strategy, and will those services be billed separately? Clear understanding of fees and engagement terms helps you and the accountant get on one page right from the beginning.
Step 5: Make Sure They Understand US Regulations
If you are a business based in the U.S., your accountant should understand U.S. tax laws, rules and compliance requirements. The U.S. tax system is complicated and failing to comply might lead to fines or penalties. Be certain the accountant knows state and federal tax regulations which impact your business.
You might even wish to look for somebody to offer active tax planning guidance to reduce tax liabilities and optimize deductions.
Final Thoughts
By hiring an accountant for VCFO services, you can obtain expert financial leadership at a fraction of the price of a full-time CFO. By assessing your requirements, researching account outsourcing services and also making sure the correct credentials and communication skills, you can get the professional who'll help your business reach financial success. With VCFO services, you can grow with your business without incurring large overhead costs.
For all your VCFO & accounting outsourcing requirements, consult The Fino Partners today for our professional services.
