The importance of choosing the right accountant

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The importance of choosing the right accountant
1/4/2012 5:26:25 PM
Category: Business Finance

The best accountants for your startup or business are not only the ones that know what you should do with your money after you have it, but also have the know-how to help get you money in the first place, Business News Daily explains.

Because of the cost and commitment involved in an accountant's work, choosing the correct one can be an arduous process. Beyond tax advice, it's possible that a company may need assistance for acquiring financing, as well as selecting the right health insurance, employee benefits and 401(k) plans, the Atlanta Business Chronicle reports.

Knowing your company's needs will help determine what type of accountant (or firm) you're looking for. For example, if your business is in need of an audit, your only choice is likely to a certified public accounting (CPA) firm. Also, if your company can survive with a bookkeeper's expertise (typically $10 to $15 an hour), that may be preferable over a CPA that could charge upwards of $250 an hour.

Regardless of need, Jim Metzler, vice president of small firm interests at the American Institute of Certified Public Accountants, suggests the best way to find an accountant is via referral. Asking attorneys, bankers, other business owners or trade organizations which CPA firm they use can be integral in ensuring that an accountant is qualified.

Virtual Office suggests checking the accountant's website as well or asking his or her company to send over materials. The website should display qualifications, state how long the firm has been established and contain legitimate testimonials from satisfied customers.

In addition, the firm should also fit the relative size of the business.

"You want to get a firm that's experienced in similar-size companies but also similar-size industries," Metzler tells ABC.

Once the referral process and resume analysis has narrowed down three-to-five candidates, they should all be brought in for interviews. Questions to ask, according to VO, include those about fees, services offered and what certain service prices include. Also, discuss how they plan to communicate with you and what software they plan to use.

Once a decision has been made, a business' accountant should be an integral part of its advisory board and can provide counsel for a startup's optimal structure such as tax minimization strategies, changes in financial legislation and identification of business goals.

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