When you’ve come to the point in your business where you realize you need to find a great accountant, congratulations! It means you’ve built something, which often comes along with a more complicated situation come tax time. Choosing an accountant can be a daunting task, but you’re going to need some tax help, or at least some advice. You want to find an accountant before you’re in the last weeks before the tax deadline, you need to have your tax expert chosen well in advance. Fear not – We have advice to help you find the right accountant who will understand you and your needs.
Building a close relationship with an accountant is a major milestone.
What should you consider when choosing an accountant?
There are many factors to keep in mind when looking for an accountant. After all, you need someone who understands your specific business and is qualified to help you manage your finances throughout the year and get you the best possible return, or tax bill come tax time. Everyone hopes to avoid an audit, but if it happens, your accountant will need to be your number one sidekick.
That said, you should have high standards. When looking for an accountant, consider…
- Fee
Finance is probably not an area in which you want to find the cheapest option. However, it is important to make sure that an accountant’s fee aligns with your budget and that you are being charged fairly. Accountants may charge a flat rate based on the services you need, such as a tax return, or they may bill hourly for ongoing assistance. Consider which model suits your needs and inquire with a few different qualified accountants to ensure prices seem relatively aligned. If one accountant is quoting far less or far more than the others, they may not be the best option. - Qualifications
Did you know that there are different qualifications accountants can have? Even though they all fall under the accountant umbrella, it’s important to understand the distinctions. Enrolled Agents are the most advanced and are the best for dealing with extremely complex tax situations. Certified Public Accountants (CPAs) pass a rigorous exam and are licensed by the state they practice in. They have both formal education and experience. Most business owners use a CPA, the IRS maintains a database of accountants with recognized credentials.
Before hiring an accountant, it’s a good idea to double-check their credentials. Doing so ensures that they are qualified to help you and give sound advice. Additionally, should you end up in an audit, a CPA or Enrolled Agent will be able to show that you have been doing everything by the books. If your accountant lacks these qualifications, you could find yourself in a difficult situation. - Specialty
Accountants specialize in many areas. If you work in a specific niche, like real estate investing, you’ll want to find an accountant with experience working with businesses similar to yours. They don’t have to be specialized exclusively, but it helps if they can give a few examples of similar companies they have worked with. Try to find an accountant who has assisted businesses of a similar size as yours but has also worked with larger businesses. By doing so, you can be assured that they can support your growth.
If an accountant has experience in your specific industry they’ll be more able to help you find tax deductions and navigate legal requirements. They may have suggestions that help you operate the financial area of your business more effectively based on what they have seen other companies do.
Choosing an accountant is an important decision. Making the right choice could help your business operate more efficiently and give you a trusted advisor when it comes to taxes and financial decisions for your business. It’s important to establish your search criteria based on what is important to you.
How do you find an accountant that’s right for you?
Having a high standard and clear requirements is the first step to hiring the perfect accountant for you. But how do you actually find accountants that meet those needs? Fortunately, there are many resources available to help you narrow down your options.
First, start with your network (real-life and digital). Check in with peers and friends in similar positions to see if they have an accountant they love. Take advantage of any professional associations you’re a part of. They may even have a list of recommendations. You can also try searching for a Facebook group. There may be a group for people in your industry or business owners in your area that can provide suggestions.
Your state most likely has a database of CPAs you can search to find a qualified accountant. For example, Georgia has the GSCPA website. This is an easy way to find CPAs near you and narrow down by experience from there.
Be sure to check reviews and schedule a phone call or in-person meeting before hiring anyone. Even if someone looks great on paper, they may not be the right fit for you personally. You’ll be sharing personal details and trusting this person with your financial information, so it’s important that you click!
Most towns and cities have a Liberty Tax franchise. My accountant who’s a fantastic CPA owns his own Liberty Tax franchise. I have a link for $25.00 off your tax preparation if you want to give them a try.
Get up to $25 Off Your Online Tax Preparations at eSmart Tax. File by 4/18
Key Takeaways
Choosing an accountant may not be easy, but it’s certainly worth it to take your time and find the perfect match. Make sure you know exactly what you’re looking for and double check credentials. Don’t wait until taxes are due to start looking – Many accountants will be fully booked by then! It’s important to maintain a relationship throughout the year, whether with quarterly check-ins or just phone calls as needed. A good accountant will help you decide the right frequency and services for your business.
Remember to keep track of all your earnings and spending through the year to make tax season easier for you and also for your accountant, this can reduce the cost of the fees.
If you only have one, or two returns that are simple then using online TurboTax is a reasonable option for you. Pay for a meeting with the right accountant to make sure you have everything in place then save yourself some money by using TurboTax, I have a link for TurboTax 2021 tax season.
This post was written with Fiverr. I hire Fiverr writers to provide posts written by industry professionals. Haleyiacuele is financial services writer specializing financial advising, retirement planning, personal and business finance. Subscribe for more business, sales and investing posts. Have a lovely day.
