How to Hire an Accountant for Your Company: A Step-by-Step Guide Leave a comment

However, many business owners hesitate to hire an accountant because they deem them unaffordable or lack the financial knowledge to test accountancy skills. Hiring a skilled business accountant who meets your needs is easier than you think. Unlike hiring a full-time accountant, you can lean on an accounting firm as needed, allowing you to only pay for the services you need when you need them. There may be a required retainer agreement, so be sure to do your research when deciding on an accounting firm. Most small businesses don’t need a dedicated employee for accounting. Having a member of your team who handles everything financial might seem tempting, but remember to factor in the salary and benefits you would be responsible for providing.

In their role as auditors, accountants assess financial statements and all business financial records to ensure they comply with relevant regulations and accurately reflect business finances. But handling finances can become overwhelming in no time — even the tiniest financial recordkeeping mistakes can result in a headache. A certified public accountant can tidy up your finances in a big way and even help you during tax time. But needing an accountant and knowing how to hire an accountant are two very different things. Filing taxes for a business is very different from filing taxes for yourself.

When do I need a small business accountant?

You want to feel secure telling them about your mistakes or asking silly questions without feeling judged. Pick an experienced accountant who can break down complex information and explain it in a way you understand. It’s also vital to let your accountant know about any kind of reporting preferences here. The accountant will most likely know best practices, but if there’s a certain report you’re after, this is the perfect time to put it on their radar.

They advise managers about how to reduce overall liabilities within the law. It’s also important that you make yourself available to answer any questions from your new accountant and that they have the proper resources to do their job effectively. Review the background of Brex Treasury or its investment professionals on FINRA’s BrokerCheck website. Please visit the Deposit Sweep Program Disclosure Statement for important legal disclosures. For example, if you’re new to an industry and struggling to make your business model work, an accountant with relevant industry experience may have knowledge and insights to help you. Andrew Lokenauth has over 15 years in leadership roles across Wall St., tech, and start-ups, having held roles at Goldman Sachs, Citi, and JPMorgan Asset Management.

What are some benefits of using an accountant?

And once your business starts growing, you likely won’t have the time or knowledge to accurately keep track of all your books. They can serve as your business’s financial guide by overseeing a large portion of your company’s financial planning and recordkeeping. They can handle your bookkeeping and help how to hire an accountant with tax planning and preparation of financial documents like tax returns. You can also use an accountant to help you avoid common accounting mistakes, such as financial inconsistencies, overpayments and cash flow shortages. Using an accounting firm or independent accountant also brings benefits.

• Set a time to speak with the accountant candidate over the phone or in person.
• Still, you’ll want to put a few guidelines in place during onboarding.
• He holds his degree in accounting and finance, and his insights have been featured in a variety of media outlets, including the Wall St Journal, Forbes, Fortune, TIME, and Business Insider.
• No, accountants and financial advisors are two entirely different professions.

At this time, you must inform your new accountant of any reporting preferences you have, as well as anything else you’d like them to know about your desired accounting processes. As you can see, business accountants can provide value for you and your business all year round and are not only needed for small business tax prep. If any of these services sound like something you’d like to have for your business, you might consider hiring one.

Assess the right accounting skills

While you’ll always want to hire an employee with the technical skills you’re searching for, finding someone you’ll enjoy working with is just as important. With an understanding of exactly what you’re looking for in an accountant, you can begin drafting a job posting to attract the accountant of your dreams. In addition, you’ll also want to prepare a collection of interview questions that can help you vet potential hires.

Don’t hesitate to provide constructive feedback or make a switch if the relationship isn’t proving fruitful. If you ever need to cut your accountant loose but are worried it will keep you from filing your taxes on time, file Form 4868, which gives you an extension on your filing deadline. Communication is key in any relationship, including the one you’ll build with your prospective accountant.