It can be stressful managing the finances of a small business in the US. Based on a NSBA report, 33% of small business owners stated that managing their finances was the hardest part of operating a business. That is why having a professional accountant is essential for long-term success. Let’s understand the best way to get an accountant for your U.S. business.
Hiring an Accountant for Your Small Business in America
This is how you can hire an accountant for your business:
1. Know When You Need an Accountant
Signs you may need an accountant include:
- You are focusing too much time on bookkeeping rather than business pursuits.
- You are not certain you are taking advantage of most of the deductions and credits.
- You have trouble managing cash flow.
- You're applying for loans or financing and you require prepared financial statements.
- You just hired workers and need help with payroll and employee benefits.
At any of these points, an outsourced accountant can help. They know how to deal with small business finance so you can concentrate on growing your company.
2. Choose Between Hiring In-House and Outsourcing Accounting
This is what these options hold for your business:
In-House Accountant: An in-house accountant works on your company and handles the daily financial activities. This option is only if your business requires ongoing financial management. For instance, in case your business has several revenue streams and regular transactions, an in house accountant could be better suited. However employing someone in-house includes additional costs - such as salary, perks and office space.
Outsourcing Accounting Services: Outsourcing accounting services is a cost-effective choice for small businesses with simpler financial requirements. Outsourcing includes paying for only things you make use of or if you want it. This is useful for businesses which do not require full time financial assistance. Outsourcing firms handle things like tax preparation, payroll, bookkeeping, and economic reporting without a full time employee's overhead.
3. Define Your Financial Needs
Before you begin searching for an accountant, draw out what financial duties you need assistance with. Accountants can provide different services and not every business will require the exact same level of assistance. Common accounting tasks for small companies include accounting and bookkeeping, tax preparation, payroll management, etc.
By defining your needs, you can find an accountant who is specialized in the services which best benefit your business enterprise.
4. Look for the Right Qualifications
Qualifications are essential when hiring an accountant. You want somebody with proper education and certifications to deal with your finances professionally. Below are qualifications to look for:
Certified Public Accountant: The state licenses a CPA to practice accounting. They need to have passed the Uniform CPA Examination and meet specific education and experience requirements.
Bookkeeper Certification: In case you’d like help carrying out simple bookkeeping, a licensed bookkeeper might be enough. They record financial transactions in organized books.
5. Ask the Right Questions During Interviews
After you have narrowed your selection of candidates, ask the appropriate questions in interviews. Below are questions to ask to ensure the accountant may be the best fit for your small business:
- Have you worked with small businesses in my sector?
- Do you know the tax laws and regulations which pertain to my business?
- What accounting software do you work with and can it be suitable for my current system?
- How do you charge for the services you provide? Is it hourly, project-based or monthly?
- How frequently will you contact me with updates?
- How do you handle cash flows and budgets of small enterprises?
6. Check References and Reviews
References & reviews should be checked before committing. Ask other small businesses or experts in your network for referrals. In case you're considering accounting outsourcing services, read reviews online of past clients of the firm. A good accountant with good reviews is more likely to offer accurate, dependable and prompt financial assistance.
7. Discuss Fees/Services
Cost is yet another consideration when employing an accountant. Fees for accounting services may differ considerably based upon the intricacy of your requirements and also the knowledge of the accountant. Clarify exactly what services you require and obtain a quote. Verify that services meet your budget and your business.
8. Set Up Clear Expectations
After you have hired an accountant, you want to establish expectations early on. Discuss their duties, when they'll provide financial reports, and how you will keep in contact. Regular communication helps your accountant continue the info they need to handle your finances properly.
Final Thoughts
Employing an outsourced accountant for your U.S. small business is a good investment which pays off in the end. Stick to this step-by-step guide to find an accountant that fits you and can help your business grow over the long term. For expert accounting services for your US business, consult The Fino Partners today for a session and see how we can fit into your accounting and bookkeeping needs.
