As a new business owner, you want to focus on running and growing your company. You may have thought about hiring a full-time or a part-time accountant as a solution depending on your workload. An accountant could be the only person who will ease off the financial paperwork that is taking too much of your time. This post looks at why you should hire an accountant, how to hire and how much it costs.
Why Should You Hire an Accountant?
Small businesses also need an accounting professional. Below are reasons why you need an accountant as a small business owner.
Perfect Financial Records and Financial Statements
A professional accountant will ensure that your financial records and statements are in order. As a business owner, you will be able to get a snapshot of all the necessary financial information whenever you need it. This information will help you in doing an analysis of your business and assist you in sticking to your plans to grow the enterprise.
Keeping Up With Laws On Taxation and Saving Tax
A certified public accountant will ensure that your business complies with the latest tax laws. An accountant will also ensure that you get tax write-offs when you file your taxes and assist with tax planning.
How to Hire an Accounting Professional
It is crucial for you to find a person with the financial knowledge that matches your business and how it operates. Taxation and financial needs for various companies are different. For instance, a sole proprietorship business setup without employees is different from a business with employees. Below are things to consider when hiring an accountant:
- Make a list of the services you would like the accountant to handle
- Network and consult with business owners to find out the accounting firms or accountants they chose to work with and why. For example, you can choose to work with an accounting firm such as Pherrus Financial for business taxation compliance services.
- Create a list of questions to ask a prospective accountant or an accounting firm, then make an appointment. There are some accountants or firms that offer free consultations.
- Issues to discuss during the hiring process include fees for tasks such as payroll, financial statements, financial reporting, first tax filing and all tax-related charges.
- During the interview, ask for recommendations for accounting software.
The Cost of Hiring an Accountant
Costs will be different depending on the accounting service that you need. The amount of money you’ll pay will also depend on the qualifications of the accountant and their experience.
Costs for a CPA with a college degree without experience will differ from a certified professional with five years of experience. If you wish to work with an accounting firm, you will pay between $100 to $250 an hour. A self-employed accountant working as a subcontractor will cost you $40 an hour.
As a startup business, you don’t want to hire an accountant who will be available during the tax season only. This type of accountant leaves you without a solution for other areas, such as tax advice and payroll.
You need to ensure that your accountant will be available throughout the year. Ensure that your CPA will solve other business challenges in addition to record statements and taxes. Most startup owners utilize an accountant’s services such as discussing:
- Business Planning
- Financial Management
- Operating Costs
- Tax Laws
- Tax Preparation
- Recording transactions
Your accountant should not only deliver the tax return but also talk to you about all the above.
An Understanding of Your Industry and Business
While you seek professional candidates who know all aspects of accounting, look for someone with the right background for your business. The ideal accountant is familiar with the operations of your specific business. They should have experience working with similar businesses in your industry and understand the operating procedure and costs associated with managing your business.
Additionally, you should hire a professional with experience working with companies at a similar stage as your business. With this kind of experience, the accountant knows the challenges and opportunities ahead, so they will not be caught off guard as the business grows.
Hiring an accountant for your startup is a wise decision. You will have more time to concentrate on growing your business. You don’t have to be an expert in bookkeeping and taxes to run a business, but you can find someone who is certified to help you out. If you have not hired an accountant yet, start by following the steps above and grow your business.