Running a small business is a difficult task. Small businesses involve immense hard work but earn comparatively fewer returns. Money management in small businesses play a vital role in earning profits and so is finding the right accountant for it.
Why do small businesses need accountants?
It is an undeniable fact that most of the small businesses fail due to poor money management. The tendency to take the accounting and financial tasks in hand is said to be the precursor to the fall. As small businesses operate with very little resources, their money management issues can be tackled only by professional accountants. And also leaving the accounting tasks to the experts make room for abundant time and energy to concentrate on generating revenue for the business.
What should small businesses look for in an accountant?
Small businesses should take below-mentioned parameters into consideration while hiring an accountant. Ask about these parameters and rate each on a scale of 10 giving a better idea about the right one.
Experience and relevant expertise
Know about their experience and ask them to talk about their journey as an accountant. Also, know if the accountant has expertise in operating in a relevant field of business. It is wise to choose an accountant with financial certifications and memberships of ICEW, ICAS, ACCA, CIOT etc.
Will they save money and how?
This is one of the primary reasons to hire an accountant. Explain about business and ask them about how they plan to manage finances and save money.
Staying up to date
This will determine the agility of the accountants or firms to the changes in trends of accounting. Some firms or accountants would still operate on conventional methods or tools missing out on the latest software, relevant laws, and processes which is eventually a loss to the business.
Let’s face it. Small businesses are naive about accounting and financial matters. See if the accountant is willing to be a mentor in dealing with financial dealings. In this case, a thing or two can be learned from their experience that will benefit the business.
Explore the contacts and potential strength of their contacts and analyze if it will benefit the business. High profile connections of accountants with government and other big businesses might help grow business. In the case of start-ups, accountants with VC connections might even end up with big fat funding round.
See if the services provided by the accountant matches business requirements or if they are able to provide a customized set of services to suit the needs at nominal costs.
Putting soul (a little) into the business
Sense if the accountant is just about figures or will they go a step or two further in helping the business to realize its vision. If the accountant shows signs to share a considerable part of the vision, the person or firm is a keeper.
Does the accountant or the firm feel right? Do they value business irrespective of its size are questions that should be considered before choosing.
Cost of a business accountant
Finally, work out the comfortable costing. Analyze and brainstorm if the quote provided is reasonable to business requirements and budget. Also, work out the preferred pricing model. Click on this link to know more about the pricing of personal accountants.
Where to find an accountant?
Starting from the circle of friends or relatives to find an accountant before web search is wiser. A simple Google search can find an accountant for small businesses. However, it is advisable to begin enquiring from the close circle. Happy accounting.