How to hire an accountant: The ultimate guide
Below are technical questions to ask when interviewing an accountant. You want an accounting firm that works with businesses of your size. If you are a business with 100+ employees you may not want to contract with a firm that exclusively serves start-ups. If your business is using certain software, see if they are familiar with it or have used something similar. They enter a contract with your business that has specific deliverables.
As with any interview, when you interview potential accountants, you need to decide if they’re the right fit for your company while also helping them get a feel for your business. The best way to do this is through open and honest communication. Finding the perfect candidate can be a daunting task, especially if you’re a business that is just starting out.
You’re experiencing rapid growth or are about to make a large investment
An accountant takes on the role of bookkeeper, while doing their own job of maintaining a company’s healthy finances, performing audits, analyzing numbers, and writing reports. They will usually have a certified public accountant (CPA) license. While accountants usually work for large companies, CPAs (certified public accountants) work for a variety of large and small businesses. This title is only awarded to people who have passed a rigorous a two-day, nationally standardized test. Most states require CPAs to have at least a college degree or its equivalent.
You can likely combine these two tasks into an accounting clerk position. Even the fact that you have an accountant might sway the bank in your favor, as it implies you’re serious about your business. With good accounting software, your accountant can present facts and figures that back up your application for funding. They’ll also be able to answer any questions your bank might have about revenue projections and expenses.
How Much Does It Cost To Hire An Accountant?
There may be an accounting system that could be making your life easier. Multiple streams of income means more documents to prepare for tax season. An accountant can help you wrangle all of the receipts and reports to create a successful tax return.
However, as a business owner, you may not be an expert in accounting and you won’t necessarily know by heart all the transactions that come in and out of your bank account. However, you decide to manage your personal accounting, be sure to separate this from accounting how to hire an accountant for any business you own. Write down details of all the checks in your check register, whether they are for utilities, supplies and so on. The better you maintain your records, the less time your accountant has to spend and the lower your fees will be.
You’re unsure where your business stands financially.
Accounting firms can differ greatly on price, and you don’t want to get into a situation where you realize only years later that you’ve been overpaying for services. Business owners who’ve aced Accounting 101 can ask targeted questions during an interview to assess whether the candidate is ready to take on all they’re looking for. Check out our glossary of accounting terms if you need a refresher. As you can see, accountants can help you out during every stage of your company’s development. That doesn’t mean you have to hire one, but the right accountant should make life easier for you, so you can concentrate on what you love doing.
According to the latest Salary Guide from Robert Half, senior accountants are among the most in-demand accounting and finance professionals for 2023. On the other hand, if your business is structured https://www.bookstime.com/ as an S or C corporation, you’re paying dividends to shareholders as well as processing payroll for employees. Now your business needs are more complicated and an accountant has a bigger benefit.
Because these professionals do more for businesses than simply prepare their taxes once a year. They often wear many different, yet important, hats—including financial advisor for your business or type of outsourced CFO. Don’t dismiss this part of the hiring process for your new senior accountant as a mere formality — it’s an essential step toward hiring with confidence. Checking professional references can help you expand your understanding of a candidate’s professional qualifications and attributes. You can also get more insight into your potential hire’s contributions to previous employers. You can use our online Salary Calculator to localize national salary figures for your local market.