Contents
Small business owners have numerous responsibilities weighing on their shoulders. Hiring the right employees, training them properly, and keeping them happy are a few of them. Providing high-quality products and services and keeping customers satisfied are also among the obligations entrepreneurs face. As if that weren’t enough, business owners must keep up with marketing and advertising, managing their supply chains, and remaining in compliance with any laws and regulations that apply to their respective industries.
Of course, numerous financial responsibilities also come into play. Those alone can be immensely stressful. They can also lead to a long list of problems if they’re not handled properly. As such, hiring a CPA is a wise move for small business owners. It can help you avoid the financial and legal issues that may arise due to inadvertent oversights. How do you choose the right CPA for your company, though? Keep the following factors in mind to help.
Know Which Accounting Services You Need
First of all, consider which accounting services you need for your business. Do you need an accountant for tax preparation alone, or are you looking for someone to handle your payroll, income, and outgoing expenses? Do you need help with keeping your financial statements in order? Do you need someone to help with strategic financial planning? Though all CPAs are technically certified to cover all of those needs, some prefer to focus on the more specialized, higher-level aspects of business finance. Be sure to choose one who offers all of the services you’re looking for.
Industry Expertise
Secondly, it’s important to think about the financial regulations, tax implications, and other factors that are unique to your industry. Those elements vary from one industry to the next. As such, you need to choose a CPA who’s well-versed in the requirements and regulations you’re up against. Hiring a CPA with that level of specialized knowledge can save you a great deal of money and prevent numerous problems for you.
Proactive Versus Reactive Approaches
Another factor to consider is whether a CPA uses a proactive or reactive approach. If you’re looking for an accountant to help you get through an IRS audit or one who can sort out your financials if you’re in trouble, a reactive approach may be more suited to your situation. On the other hand, if you want to avoid potential problems from the beginning, a CPA who will develop a proactive plan for working with your company would be the best choice. If you haven’t yet experienced tax issues, payroll problems, or other complications, hiring a proactive CPA will certainly pay off.
Fee Structures
Finally, be sure you understand a CPA’s fee structure before hiring them. Some charge based on the services you want whereas others charge by the hour. Some accountants charge monthly retainer fees. Consider which one might be more beneficial and cost-effective for you. At the same time, you may want to choose an accountant who is willing and able to scale their services and pay structure should your needs change in the future.
Finding the Right CPA for Your Business
Many small business owners try to handle financial matters on their own. Quite a few find it overwhelming, and some inadvertently cause serious problems for themselves. Hiring a CPA can help you avoid potential pitfalls. Though it’s an added expense, it can save you a great deal of money over the long term. Keep the factors mentioned here in mind to help you find the right CPA for your small business.
