Vault’s Viewpoint
- While human accountants aren’t necessary for every small business, they are essential if your business is scaling rapidly or if you need help with financial strategy.
- You can find a small business accountant by asking people you know for recommendations, seeking connections from your social networks and looking in directories.
- A small business accountant might seem like an unnecessary expense today, but depending on your industry and financial needs, it will produce untold ROI in the form of time savings, tax refunds and a solid framework for growth.
How to Know If You Need a Small Business Accountant
Before diving into the search for an accountant, ask yourself the following questions:
How Much Time am I Currently Spending on Accounting?
Time is money, especially for small business leaders. If you are spending time reconciling statements and processing invoices instead of strategizing for growth or making pivotal hiring decisions, consider searching for an accountant. In a similar but different vein, if you are not spending enough time on accounting and suffering from sloppy books or missing filing deadlines, finding a small business accountant is definitely a smart move.
How Fast Is My Business Scaling?
The faster your business grows, the more overwhelming accounting will become. More customers and employees means more complex accounting and tax filings. If you’re looking at a healthy growth trajectory for the next year, find a small business accountant today. Do not wait until you have an accounting mess to hire help.
Do I Need Specific Compliance Advice and/or Financial Planning?
If you’re in an industry with particular regulations or compliance requirements, you will eventually need an accountant. An expert with experience in your industry will be invaluable for helping you stay compliant and make savvy financial decisions specific to your market sector.
Can I Use Software Instead of Hiring a Human?
In many cases, opting for small business accounting software can be a smart alternative to outsourcing accounting to a firm or individual contractor. If you have less complex accounting needs such as basic payroll for a few employees located in the same state, software could be a solid choice. However, if you need strategic financial advice, you’ll need to find a human accountant.
How to Find a Small Business Accountant
Start With Word-of-Mouth Recommendations
While you might be tempted to start with a Google search, we recommend you begin with personal references. If you know any other successful small business owners, send them a quick email asking for recommendations. The breadth of internet-based options will likely only overwhelm you—and possibly leave you stagnated by information overload—so pinging your personal circle is a wise first step.
Ask Your Social Networks
After tapping your personal network, tap your online network. Creating a post on LinkedIn detailing your need, for example, may elicit responses from people in your business periphery. Your connections may even directly tag their trusted small business accountants in the comments of your post—facilitating a quick introduction. Quora and Reddit may also serve as helpful forums.
Consult Official Directories
The National Association of State Boards of Accountancy and The American Institute of Certified Public Accountants offer listings of official accountants by state and region.
Set up Introductory Meetings
You will want to vet any professional before committing to a partnership. Any reputable accountant will be happy to set up a free introductory meeting with you.
How to Identify the Accountant That’s Right for You
Finding a small business accountant that’s right for your organization is easy if you conduct interviews with the following questions in mind:
Is it Easy to Communicate With the Candidate?
You’ll want to choose an accountant who is responsive and clear when answering your questions. Ideally, you choose someone you can have a longstanding relationship with, so confidence in your mutual communication capacity is key.
Do They Have Positive Reviews or References?
It’s within your right to ask a candidate for a couple of references. In today’s day and age, with scams abound, any accountant who has a proven track record should willingly supply a reference or two to secure a new customer.
Have They Raised Any Red Flags?
You’ll need to use your judgment and intuition when choosing an accountant, but there are a few red flags to keep an eye out for. Steer clear if the candidate’s communication is unreliable or if they ask you to sign documents without explanation.
Are You a Technological Match?
Modern accountants use software, so if you already use accounting software, it will be a huge plus to have the same system in place that your accountant prefers. If you use a different system—or none at all—inquire about how your existing processes will mesh with the candidate’s preferred working methods and tools.
Do They Check All Your Boxes?
Keep a checklist of needs handy as you interview candidates. The right accountant should keep hours that make sense for your business, have expertise in your field, have a demonstrable track record of successful small business customers and offer services within your budget.
Benefits of Hiring a Small Business Accountant
If you think paying a third party to take on your accounting and tax work is a waste of money, consider the following benefits.
Time Savings
As a small business leader, you know how valuable an hour is. You’ll be able to devote all the time you spend on accounting tasks to strategic planning and decision-making that supports your growth goals.
Flexible, Expert Help
You don’t have to sign an expensive contract to leverage the help of a professional small business accountant. Many accountants offer flexible arrangements where they work hourly, per project, on a quarterly basis or other options. If a more ad-hoc service is best for you, make that one of your checklist components so you can narrow down your candidates by their flexibility.
Assured Compliance and Accuracy
An accountant is dedicated to making sure your finances are clean and accessible. As your business grows, it will be increasingly difficult for you to stay on top of this task amid all the other requirements begging for your time. An accountant will also lift the weight of maintaining compliance in certain areas off your shoulders.
Tax Benefits
Accountants—especially ones specific to your industry—stay on top of all the possible deductions and tricks of the trade to maximize your tax refund and save on your tax bill.
Guidance For Growth
If you want to make the smartest possible decisions for your business, you’ll need a knowledgeable financial resource. Accountants make it their business to stay on top of evolving economic conditions that can affect your plans, so leveraging one allows you to make moves, create budgets and project future needs using seasoned financial advice.
Frequently Asked Questions
Do I Need a CPA for My Business?
A Certified Public Accountant (CPA) will be a boon for your small business if you are spending too much time mired in accounting tasks, want to maximize tax deductions or need financial planning advice. While not all small businesses need a CPA, if your organization is growing quickly, it’s definitely worth exploring options for outsourcing accounting to a third party.
Should I Use Accounting Software or Hire an Accountant?
Accounting software can be a valuable tool for small businesses that need a middle-ground solution between doing accounting themselves and hiring a human. Keep in mind that while accounting software can automate some tasks and save you time, it cannot provide intuitive financial planning guidance.
How Do I Know if an Accountant Is Legit?
Take a few steps to verify an accountant before you commit to a working partnership: ask for one or two references to start. Any legitimate professional will be happy to provide them. Look for reviews of their work online. If you’ve found the accountant through a listing on The National Association of State Boards of Accountancy or The American Institute of Certified Public Accountants, the chance is high that they are legitimate.
