How to find the best contractor accountants

Choosing an accountant is similar to selecting a new business associate. As your small business expands, the right accountant will become a trusted colleague who can offer advise and support. So, what are the most important things to keep an eye out for?

The next step is to determine which accountant to hire once you’ve decided it’s time to get one.

It’s crucial to take your time with this, and there are a few things you should think about first. You’ll need to consider things like the accountant’s location, workload division, and the accounting software you’ll employ. Consider how much the contactor accountant fees and whether they’ll be able to help you save money on your taxes.

It’s in your company’s best interests to entrust one of the most crucial aspects of your business — your money – to an experienced, capable individual. Year after year, the correct employee will save you time and money. So, when it comes to picking an accountant, here are some things to think about.

Choosing an accountant: Some pointers

The next step is to determine which accountant to hire once you’ve decided it’s time to get one.

It’s crucial to take your time with this, and there are a few things you should think about first. You’ll need to consider things like the accountant’s location, workload division, and the accounting software you’ll employ. Consider how much you’ll have to pay the accountant and whether they’ll be able to help you save money on your taxes.

It’s in your company’s best interests to entrust one of the most crucial aspects of your business — your money – to an experienced, capable individual. Year after year, the correct employee will save you time and money. So, when it comes to picking an accountant, here are some things to think about.

RELATED: How To Choose A Contractor Accountant

Consider whether or not the location is important.

It used to be critical to have your company’s accountant in close proximity. Today, however, more businesses are cooperating online and managing their operations with cloud-based technologies. As a result, location is less of a concern. You and your accountant can both see the same real-time data using cloud accounting, no matter where you are.

It all boils down to what works best for your organisation when it comes to hiring an accountant. Your accountant could be based anywhere in the world, depending on how you wish to handle your accounts. You may be in New York and they could be in London, for example, if you’re happy to cooperate via email, phone conversations, video conferencing, or encrypted accounting software. You don’t have to make concessions depending on your accountant’s location if they can work from anywhere in the world. You can locate someone who truly comprehends the intricacies of your company or sector.

You may, on the other hand, prefer face-to-face communication and find it useful to have someone who can accompany you to business meetings. If this is the case, you’ll need to narrow your search to accountants that work in the area or are willing to visit your office on a regular basis.

Make sure they’re well-versed in the tax rules that relate to your company, regardless of where they’re headquartered.

Select a chartered or certified accountant.

Choose an accountant who is regulated by a professional body or recognised by the government for peace of mind.

From the beginning, an experienced and skilled accountant can offer value to your company. If you want your business to grow, hiring a professional accountant early rather than later is a good idea.

Of course, non-chartered accountants – or those with a similar professional degree – can be used for bookkeeping, tax preparation, and general financial management. If you apply for a loan or are audited, you’ll almost certainly need those better qualifications on your side.

Look for an accountant that has experience in the field.

You’ll need someone who has worked on tax returns and financial records for businesses with similar revenue and size as yours. If your firm relies heavily on cloud-based software, you’ll want someone who is familiar with the technology.

It’s even better if they’ve worked with businesses in similar industries to yours, as this will help them grasp your company’s particular requirements. You might want to inquire about their larger clients. If they do, that’s a positive indicator because it means they’ll be able to meet your rising needs in the future.

You might also request a client list with information on each company’s gross income and personnel count. Find out how their previous clients have grown and expanded over time to see if they’ll be able to handle your company’s changing needs.

Make use of your social media accounts.

When looking for an accountant, the best choice may be right in front of your eyes. Begin by asking any small-business-owning friends or family members if they would suggest their accountant. If so, what’s the reasoning behind it? And if not, what’s the hold-up? When it comes time to interview candidates, the answers to both questions may come in handy.

Remember that picking an accountant is a personal decision; what works for your best friend’s PR firm might not work for your manufacturing firm. Consider disparities in business structure as well. A single trader’s accountant may not be the greatest choice for a firm with ten workers.

Five strategies to get additional information from your social media accounts

Investigate each candidate’s background using LinkedIn or other internet networks, and learn things like:

• Who do they have ties to?
• Is there a solid professional network in place for them?
• What language do they use to describe their services?
• Are they enthused and enthusiastic about their work?
• Have they gotten any referrals from their customers?
• What exactly do the recommendations say?
• What is their background?
• What were they doing before they started their business, and how long have they been in business?
• What are their credentials?
• Is he or she a chartered or certified accountant, a bookkeeper, a financial counsellor, or another profession?

Consult with government and corporate organisations.

Small enterprises are vital to the economies of many countries. Because of this, governments like to foster their growth.

Take advantage of the networks of business advisors available to you as a small business owner to assist you in making decisions such as selecting the correct accountant. Volunteer organisations and local chambers of business are frequently willing to assist you. Use them because they are there to assist you and their counsel is usually free.

They can also be beneficial for networking and conversing with other business owners. After a few attempts, you may discover that other business owners have recommended an accountant to you. If nothing else, it might help you narrow down your list of potential interviewees.

Make a plan for how the accounting work will be distributed.

Accountants are skilled in all aspects of bookkeeping and accounting for small businesses. You can usually package your bills and invoices, pass them all over, and they’ll take care of the rest. However, this isn’t always the greatest strategy.

Making accountants undertake simple data-entry chores isn’t the best use of their time – time that you’re paying for. As a result, take command of the situation and become more active in the accounting process (if you can). This will provide you a greater understanding of your spending and income in real time, as well as a heads-up on any potential issues.

For example, you may enter the fundamental accounting data yourself and then delegate the rest of the work to your accountant. Then they can handle more complicated activities like bank account reconciliation, tax return form completion, payroll, and capital depreciation calculations.

Accounting software of good quality will make it simple for you to participate in your accounting process. It will make duties like billing, sending invoices automatically, and recording their contents easier. If your accounting software is cloud-based, you may easily grant your accountant secure access to your accounts with a single click.

Find out what accounting software the accountant employs.

Accountants frequently use their own accounting software. They’ve probably been in business for a long time and have grown accustomed to a specific brand of software.

This could be an issue. There may be difficulties sharing data if your organisation employs a different sort of software. Although data can be exported and imported in an appropriate format, doing so can be time-consuming and error-prone. Because email is approximately as secure as a postcard, there’s also the possibility of your very sensitive financial information being seen as you send it back and forth.

So look for an accountant who uses the same accounting software as you. Alternatively, one who is willing to do so. There’s no reason they couldn’t use separate accounting software for various clients. This is particularly true if the software is simple to use.

It’s best if you can agree to utilise industry-leading, user-friendly accounting software and only share files that have been properly protected. A collaborative, cloud-based accounting software with built-in encryption is an even better solution. This means you won’t have to be concerned about the hazards associated with data exchange.

Before making a decision, interview multiple candidates.

Don’t take the first offer you get, just like you wouldn’t accept the first offer you get in life. Arrange your materials in such a way that you may compare a number of accountants. Then you’ll be able to figure out which one is best for your company.

An interview can be a useful tool for determining how well you’ll get along with someone. Furthermore, a series of interviews will not only assist you in better defining the type of accountant you require, but will also provide you with vital free advice. This may even assist you in better defining your own business requirements.

Perform a background check

Before you sign on the dotted line, speak with some of your potential accountant’s clients. There are professional services that can assist you with this, but if the accountant is genuine, they will most likely be prepared to provide you with a list of references.

This will help you verify some of the information provided by the accountant. It will also provide you the opportunity to learn firsthand about the accountant’s relationship with their other clients.

When contacting referees, use caution. Don’t make them feel weighed down by a slew of written inquiries to answer. A ten-minute phone chat will certainly reveal significantly more about your potential accountant than a three-page questionnaire filled with dull written responses.

Good accountants will aid in the expansion of your business.

There’s a reason why everything sounds more like a marriage than a business arrangement. It’s not a decision to be made lightly because your accountant will become closely involved with the operation of your business. You’ll need someone you can rely on, who has the required experience, and who will be available when you need them.

Good accountants assist businesses in growing by managing difficult financial tasks and providing realistic business advice. This will undoubtedly save you money both in the short and long run. The greatest ones will be your spouse in all but name – and you can’t go wrong if you choose correctly.

FURTHER READING: Do I Need an Accountant as a Contractor?