Have you considered the questions to ask before hiring an accountant for business?
As a business owner, one of the most important decisions you’ll make is choosing the right accountant to manage your finances. Having the right accountant on your team can make a huge impact on your financial success and help you avoid costly mistakes. But with so many accounting professionals out there, how do you know which one is right for your business? That’s why it’s crucial to ask the right questions before making a hiring decision.
Most business owners understand the importance of managing their finances. You must properly track the flow of cash, income, and expenses to understand the business’s financial health, which makes accountants and bookkeepers essential in this field.
They know how to record your transactions, create organised reports, and analyse the results. They can advise you on possible steps to ensure the success of your business and give a financial forecast of your business. If you plan to hire an accountant, here are some important questions you need to ask to ensure you find the best fit for your needs.
1. Are you comfortable working with small businesses?
Before hiring an accountant, you need to make sure that they know how to work with your type of business. There are different types of businesses, and managing their financial transactions is also different. For example, a large business has several departments with key job roles.
These functions often don’t apply to small businesses. An accountant who knows how to work with your business can understand the dynamics of the small organisation and the challenges entrepreneurs go through each day. Some examples of questions you may ask them include:
- Have you worked with small businesses before?
- Do you have knowledge and experience in my industry?
- Are you comfortable working with small businesses?
- How do you work with clients?
- What was your approach to the challenges faced by your clients?
These questions allow you to know how the accountant will work with you. Communication is key to a healthy business relationship. You need to know how well they express facts and ideas. You may also want to consider how you will communicate with the accountant.
Some accountants prefer to meet with the client. Others tend to converse through phone or email. They can also help you with tax reporting obligations and assist you when you call for help. Other accountants will assist you in improving your business plan.
They can create a business budget, suggest ways to improve your processes to minimise expenses, and monitor financials. Some accountants constantly keep in touch with their clients by giving them daily or weekly informative newsletters and workshops to keep them up to date with the latest trends. These workshops are helpful for every business owner because it informs them of how they can adapt and grow their business.
2. Do you understand our accounting needs?
Your accountant must understand what you are looking for. They can check if their background and services are aligned with your goals. It is challenging to start working with each other, only to find out that your accountant can’t do the job. If the accountant specialises in large businesses, then it may not be the right fit for you. You must explain your needs and goals to your accountant.
3. What kind of accounting software do you use?
Accounting software makes it easier for an accountant and a business to store and record financial transactions. If they haven’t used any of this software, it is a major red flag because it means they haven’t adapted to the fast-paced market. Ask them what they are used to because there will be times they will need to log in to view or update your data.
Hiring an accountant can help you significantly with your business. Ask them these questions when you meet them to gauge if they are the right fit for your company. Don’t forget to ask them who you will be working with to establish rapport.
There are a couple of accountants near your area. Wardle Partners Accountants & Advisors have the best accountants along the Sunshine Coast. We help businesses with their accounting, bookkeeping, and tax needs. Contact us today!