No matter what stage of life your business is in, you'll need an experienced accountant not just to prepare your taxes, but to help you steer a steady course. A good small business accountant not only understands and keeps up with state and federal tax laws, but should know enough about your business to become a vital member of your advisory team.
Your accountant should be consulted before you buy any major equipment, sign a major deal, or sell or relocate your business. If you plan to sell your business or sell shares to the public, having a skilled accountant is essential.
But how do you find the right accountant for your small business?
If possible, look for someone with extensive background and experience in your specific industry. If you are in the apparel business, you want someone who knows the fashion business. If you are in the construction industry, you want someone who knows the ins and outs of leasing heavy equipment and dealing with subcontractors.
The best way to find a good accountant is via word-of- mouth and by asking your peers for referrals. Ask friends, neighbors and business associates for recommendations. In addition to being able to crunch numbers and understand complex tax law, a good accountant should be a good listener who genuinely cares about you and your business.
Remember, in order to do a good job, your accountant has to know just about everything about you, your family and your business. This is why it's essential to find someone you feel comfortable talking to. They should be both competent and a have good chemistry with you and your staff.
Once you assemble a list of potential candidates, call their office and ask someone there to send you a company profile, brochure or other written material. When the package arrives, study it. Is the material clear and well-presented? Is the cover letter neatly typed?
You want to make sure the firm makes a positive first impression. Why? Because they are representing you and your company to the Internal Revenue Service and the rest of the business world.
If the package looks good, call and make an appointment to meet with someone at the firm. Many entrepreneurs prefer to work with small accounting firms because they are more likely to work directly with a partner or principal. But, if your company requires a big company with international offices, don't be afraid to go with a Big Six firm.
Schedule at least an hour for an initial visit. If the person says they plan to charge you for the get-acquainted meeting, cancel it. A reputable accountant will meet with prospective clients at no charge.
Make a list of questions you want to ask during your interview. Remember, you want to find out if the person has experience serving your particular industry, as well as whether or not they are competent.
Sit back and listen to what they say. Ask yourself if you feel comfortable talking with the person. Remember, you will be sharing very personal financial information.
If the chemisty and credentials are right, ask for a short list of other clients you can call for references. If the person is reluctant to provide such a list, this is a major red flag.
You also want to ask whether or not they are up-to-date with the professional courses they are required to take by their accrediting organizations. You also want to know if they are a certified public accountant or not.
If their references check out, be sure to discuss these issues: - What does the accountant plan to charge you for various projects and services?
- Will he or she be doing the work or will they rely on others in the firm to help.
- Exactly how do they want you to provide information. By fax? On disk? In person?
- When specifically do they need information from you?
- Will they represent you in a dispute with the IRS?
- How often do they expect to be paid?
Remember, if things don't work out, don't be afraid to change accountants. There are thousands out there who would be happy to have your business. |
