By Rieva Lesonsky
It’s that time of year…time when an entrepreneur’s thoughts turn to year-end tax planning. And that’s a good time to think about your business’s accountant. Do you have one? If you’re still doing your own books or taxes, it’s time to reconsider. A good accountant can quickly recoup the money you spend on him or her by making smart choices on your taxes. Beyond year-end taxes, a good business accountant can help your business in innumerable other ways:
- Setting up accounting systems and training you and your staff to use them
- Keeping up to date on tax changes throughout the year
- Offering business advice
- Assisting with strategic planning issues
So how do you find a good accountant? Ask around and get recommendations from other small business owners, your banker or your attorney. Once you’ve gotten a shortlist of names, arrange to meet with each. At these meetings you’ll want to know:
- What kinds of services does the accountant offer? Most accountants offer tax planning and preparation, but they may also offer bookkeeping, consulting, investment management and estate planning services. Some accountants prepare and audit financial statements, prepare documents for loans or other forms of business financing, and manage company retirement plans.
- How well does the accountant know your industry? Look for an accountant who not only has experience in your industry, but also works with lots of businesses of your size.
- How does he or she charge? Accountants may charge by the hour or offer a monthly retainer. Be sure you understand the costs for the specific types of services you’re interested in.
- Is it a good match? Your accountant will be a key partner in your business, so it’s important that you think alike. Ask the person how he or she would handle some situations your business is now facing. What do you think of the answers? A good accountant should be ethical, explain all your options and offer in-depth advice.
Get references, and call them after your meeting. You should also check the accountant’s credentials at the American Institute of Certified Public Accountants website and by contacting your State Board of Accountants.
To benefit from your accountant’s experience, meet with him or her regularly and seek advice as your business grows.
Photo Courtesy: Karen Axelton
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Tags: accounting, small business, taxes
Posted in Accounting and Taxes, Compliance, Small Business | 2 Comments »
