7 Things to Consider at The Time of Hiring an Accounting Service Provider

Keeping track of your money can be a very difficult task especially when you’re managing your own business. Understanding where every penny is very crucial as a business owner. In order to do this, the wisest decision is to hire accounting services to manage your money and accounts, so that your business can enjoy maximum profits and savings.  So if you have made the wise decision of hiring someone who has in-depth knowledge of accounting, then you need to consider these 8 things.

Hiring a firm or an Inside Accountant

These days, young and budding entrepreneurs start out by handling their own finances and end up biting more than they can chew. While handling business’ finances has become easier for the layman because of simple bookkeeping software like Quickbook, Quicken or Microsoft Office Small Business Accounting, there will come a time when the best option to move forward is to hire a professional financial specialist.

A good accountant can not only aid in tax returns and tax planning but also in business planning, networking, and even personal tax planning especially if you are a major stakeholder in your business. This is why it is crucial for you to decide if you need an accounting firm or an inside accountant before you choose to hire an accounting service.

Choosing the Right Time
In the case of small businesses that have not been established for a long enough period of time, there may not be sufficient funds to hire a professional full-time or even part-time to take care of the finances and accounts. This being said, it is at that point of time that the business usually needs a financial review, planning and an up-to-date accounting the most.

Hiring an outside accountant or an accounting firm as a consultant is probably the first good decision towards establishing a successful business. Accounts can help at various different stages in the growth and maintenance of a business. This is because they can handle more than just the payroll and tax returns. Because of this, it is crucial to understand the right time to hire an accounting service.

Hiring an Outside Accountant
The responsibilities of an outside accounting firm usually involve tax return preparation and preparing financial statements which include balance sheets, income statements, and statement of cash. They are also responsible for problem analysis and giving solution advice. Usually, accounting firms charge by the hour and the rates may vary based on the complexity of the undertaken tasks. It is important to understand that the business owner would be wise only to hire an accounting firm that saves considerably a higher amount of money than his fees. While looking at the annual invoice may seem high, the business owner must also understand that he is getting a professional look and a performance review of his business.

Hiring an Inside Accountant
Once the company’s revenue increases and they can afford it, it would be wise to hire a part-time or full-time accountant. An inside accountant has the responsibilities of account maintenance, daily transaction responsibilities, cot accounting and variance analysis, financial statement preparation analysis, treasury, and cash management. The responsibilities also include payroll and fixed asset accounting. Check with other companies and colleagues for information about the rates and compensations based on responsibilities so that your company doesn’t invest more than it can afford on a professional accounting service. Considering compensation based salary instead of a front loaded salary is also a wise option.

The Key Qualifications
Once you have made the decision of hiring either an inside accountant or an accounting firm, it is important to make decisions on how qualified your accountant needs to be before he begins working for you. A non-certified accountant can handle your business’ financial statements, analysis as well as bookkeeping if that’s all you are looking for. However, if you want good tax advice and return preparation, then it is important to look for an accountant who is well versed in tax laws and knowledgeable on how to reduce tax laws as much as possible.

Choosing an accountant must be considered keeping in mind the following qualifications.

How certified is the accountant? Does he have an undergraduate degree and has he met the exams and experience required to be certified?

Industry experience is crucial. How many years has the accountant worked in the industry and with which industry brand has he worked.



 

Accounting service brands are also something to consider. While it may be tempting to choose the biggest brand to handle your accounts, business owners must look at what they can afford.

The complexity of the services that you require is also very important. Based on this, you may get a financial perspective of how much to invest for the services that you require.

Finding a Referral
If you are hiring an outside accountant then it can be advantageous to find out and get referrals to firms that your friends or colleagues may be using. There are no better recommendations than those that come from people you trust. If you plan on hiring an inside accountant, then you have the option of getting the word out through your friends and colleagues. In any case, going to services through referrals can be more trustworthy than going through other agencies and services.

Recruiting and Hiring
For small businesses and companies, hiring the wrong accountant or a service that does not give you the right information in accounting. This can lead to a series of ill-advised decision related to handling your business. It is imperative to the business to check references and do proper background checks on each individual. It is also crucial to the future of the business to hire an accountant only after proper interviewing and establishing the legitimacy of his services.

Conclusion

If you consider above mentioned points at the time of hiring a accounting service provider, then you will certainly be able to pick the best one. Once you pick the best one, you don’t have to worry about the accounting section of your business at all.