You can hire an accountant, a certified public accountant or an accounting firm if you need to prepare financial statements.An accountant can help you organize your finances, whether you need to prepare financial statements or pay taxes.Most accountants stay up to date with the latest tax laws.They can help you find tax breaks that will result in more tax deductions and less money being owed to the government.
Step 1: Do you need an accountant or a CPA?
Different accounting professionals are able to do different things.Making journal entries and posting accounts payable, receivables, and payroll taxes are some of the duties of an accountant.Most of the day-to-day financial tasks of a company are handled by accountants.Auditing financial records, determining the method of reporting, and serving as a consultant are some of the responsibilities of a CPA.They are able to represent their clients in IRS audits because they are authorized to take on a few more responsibilities than accountants.Many CPAs own their own businesses.
Step 2: For referrals, ask your friends or coworkers.
This is a great way to start your search for an accountant.Ask other business owners in your industry to find an industry-specific accountant if you are looking for one for your small business.
Step 3: Check with the state associations.
In the United States, you can contact your state CPA society for help choosing a CPA firm.The National Association of State Boards of Accountancy has references for accountants.Many countries have professional boards.
Step 4: Social media should be used with care.
It won't hurt to check the credentials of a potential accountant on a social media site.
Step 5: You should find the right fit.
There are real implications for your financial health from this professional relationship.Selecting an accountant that listens to your needs and can answer your questions is important.How do they communicate?Is it possible to reach them when it's necessary?Are you comfortable sharing your finances with them?Obviously you want an accountant who knows his or her stuff, but the mark of a good professional is that they can translate that jargon into information that you can understand.You can build a long-term relationship with someone.
Step 6: You can research the accounting firms in your area.
Look over the websites of accountants that you have received referrals for and learn more about them.Consider the needs of your company based on the specialty of the firm.An accountant who specializes in small business issues, has a good deal of experience, and represents other companies in your industry is what you should look for.An accountant has a leg up on others.An accountant should be able to discuss your business needs with you.
Step 7: The firm's size should be evaluated.
Is it better to work with an accountant who operates their own small firm or with a larger firm?Smaller firms may not offer the same services as larger firms.If you need help with a very specialized task, you will need to inquire if the firm or individual is licensed to handle it.Larger corporations or individuals with more complex financial situations may need more than one accountant working on their financials so you should look at and interview the larger firm and the team that they are working with.It is fairly common for sole practitioners to communicate remotely or even keep their books at their home office for smaller needs.They may want to meet you at a coffee shop.Don't be alarmed by this.Check the credentials of any potential accountant.Where the work takes place isn't important after that.Lower overhead costs and lower fees can be achieved by the absence of an office or suite.
Step 8: Inquire about accountant rates.
If your finances require more attention or are more complicated, you may need to adjust your budget.Depending on the size of the firm, the accountant's experience, and the location, rates for services will vary.Your tax return preparation and write-up work can be handled by a junior account.After the junior accountant prepares the tax returns, a CPA may review them.The consulting work will be handled by the firm partners.Professional charges will be higher if the responsibility is greater.
Step 9: Interview a few accountants.
You can now begin to contact individuals to set up interviews based on your research and any referrals you may have received.To find the best accountant for you, you should shop around and interview a few different firms.Get ready for your interviews.You should have an idea of what you are looking for in an accountant, what your budget is, and the services that you need help with.
Step 10: Request information that's relevant.
References, a list of services, examples of current invoices, and the fee schedule may be included.For example, if you hire an accountant for tax season, your fee schedule, and the services you require will be very different from what you get with an accountants for ongoing consultation.Crosscheck these references with your state CPA registries and boards.Ask about the accountant's education, companies they've worked with before, and what certifications they have.It is important to ask if the individual is licensed to practice in your state.Ask about completion times as well.If your business needs information on specific dates, be clear, accounting firms tend to over-promise on timing.
Step 11: Good questions to ask.
While interviewing potential accountants, ask questions that will give you more information about them as professionals, the firm they work with, and what you can expect.How long has the firm been in business?How big is the firm?How long have they worked for the firm?What is the average response time for tax return preparation and year-end financial statements?What other clients do they have?How many clients do the IRS audit annually?
Step 12: Take the price into account when evaluating what you get for it.
Accounting services can quickly pay for themselves with tax write offs and tax savings.When interviewing accountants or firms, ask for quotes and use them when making your final decision.An accountant is an investment in your financial health or your small business.Evaluate the cost of hiring an accountant.Is there anything else you could be doing instead of preparing your financial statements?A more experienced accountant can work more efficiently and take less time to complete tasks than a less experienced one.
Step 13: The accounting firm you hire should meet your requirements.
You're ready to hire someone after you've researched and interviewed several accountants.To begin to assess your financial and tax needs, arrange your first meeting with your newly hired accountant.Fees, timing, duties, and other expectations are spelled out in an engagement letter from your new accountant.Asking for one is a good idea if one isn't offered.Prepare your financial statements and give them to your new accountant.