"7 Key Factors To Consider Before Hiring an Accountant or Bookkeeper For Your Small Business"

 What Is Their Primary Field Of Specialty? 

 

Much like doctors and lawyers who specialize in various fields of medicine and law - so goes the accounting and bookkeeping fields. Unfortunately, many small business owners fail to realize this and end up overpaying their taxes simply because they’ve failed to align themselves with the proper type of accountant or bookeeping firm.  That’s because unless a bookkeeper or accountant specializes in small business accounting, they oftentimes don’t understand the mammoth tax codes regarding your business and end up being too conservative with your tax deductions. The more conservative they are - the more taxes you end up paying.  If they do practice business accounting, a good rule to follow is the75% rule – if at least 75% of their clients are small business owners, there’s a higher probability that they’re up to date on the latest tax codes for your business. Of course, to find a firm that specializes100% in small business accounting and bookkeeping would be ideal.

 
The essence of good small business customer service is developing relationships with your customers. To help you determine if the bookkeeper or accounting firm you’re considering practices this philosophy, here are a few key questions to ask:  Does the firm have a pro-active or reactive accounting management approach?  Pro-active being a firm that takes a vested interest in the success of your business by offering solutions to help you better manage your books and grow your business vs. just being a “numbers cruncher”? If you’re a Quickbooks user - do they offer ongoing Quickbooks coaching? What are their hours of operation? What is their policy on getting paperwork or documents from you? If local, do they pick them up or do you personally have to drive them over? If out of state, what methods do they use: mail, fax, and scan or on line?

 

 Do They Have A Working Demeanor Or Personality You Can Live With?

 

Nothing can be more frustrating than working with a bookkeeper or accountant whose personality or working demeanor is not compatible with yours. A good way to prevent this from happening is to ask them the other 6 questions on this checklist either face to face or by phone. Of course face to face would be the best, but if you’re considering outsourcing, a phone interview with the person who will be primarily handling your bookkeeping or accounting will give you a pretty good idea of their demeanor, personality and working philosophy as well.

 

 What Type Of Software Accounting Management Program Do They Use?

 

This is an extremely important factor to consider. Utilizing the services an accountant or bookkeeper who uses an entirely different accounting management system than what you’re use to can oftentimes create ongoing communication issues and increased frustration levels that you just didn’t bargain for. Make sure the accountant or bookkeeper is familiar with the nature of your business and their system can seamlessly integrate with yours. 

 

   

You need to ask how they charge for services. Do they charge by the hour? Are you on the clock for a phone call? In addition to fees charged for their bookkeeping or accounting services, do they charge extra to prepare corporate or business year end tax returns? If so, how much? What method of payments are accepted or perhaps - required? Do they offer any type of fee guarantee for their services? 
 

The average small business owner has plenty of tax reduction strategies available to them. The key in utilizing these strategies to the fullest is to have a professional accounting or bookkeeping firm on board who can correctly interpret the ever changing business tax codes in order to gain the advantage over the IRS for your business. This can best be accomplished by considering a firm whose primary clients are small business owners. 

 
A tax accountant or CPA who specializes in tax returns could probably prepare your business returns in their sleep. However, there’s a big difference between a good tax preparer and a savvy small business tax reduction specialist.

Don’t leave the tax consequences of your small business to chance. Following these 7 simple guidelines can help dramatically increase your odds of aligning yourself with a good accountant or bookkeeper who can help financially protect and grow your business.
 

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