3 Steps to Hire the Right Accountant for Your Business

Tax season is almost upon us and many of you may be wondering whether it’s time to hire a CPA or bookkeeper to help you better navigate your financial picture in 2016. Here are some things to consider:

If you don’t currently use a bookkeeper or CPA to manage your daily work, you should hire someone if…

Your books are not kept up to date (at least weekly) or information is spread out between QuickBooks and Excel spreadsheets.
You’re not sending invoices or paying bills in a timely manner.
You don’t understand what your financials are telling you or you aren’t using the information to make decisions.
You’re spending more time in QuickBooks than you are growing and managing all the other areas of your business.

If you use a CPA or bookkeeper NOW or have used one in the past, it’s time to make a switch if…

They don’t return your phone calls or answer your questions in a timely manner.
They make you feel stupid or uncomfortable when you ask questions.
They always have to use extensions to finish your taxes.
You were completely unprepared for what you owed last year.
You need better advice based on your industry.

If one of more of these items are true for you and you’re ready to improve the overall financial health of your business – it’s time to hire the right CPA or bookkeeper. Whether you bring them in-house or contract the service, here are some steps to make sure you hire the right person.

Do These 3 Things to Hire the Right CPA and/or Bookkeeper

Ask for Recommendations

When you’re hiring a new team member or contractor, you should always ask for recommendations. Ask other business owners and your personal and professional networks. Check with your local Chamber of Commerce and the Better Business Bureau as well. Using a recommendation is more likely to deliver the outcome you’re expecting. If you have no one to ask personally, make sure you do thorough research before you invite them in for a conversation.

Take the Time to Interview & Verify

Don’t rush into a decision – take your time to ensure you make the right hire. Always check certifications and gather references (and actually call them). You may even consider asking to see their license to verify the person or company you’re considering is legitimate.

You should interview at least three candidates or companies then weigh the pros and cons. Ask what types of services they provide, how long they’ve been in business, and why you should hire them over anyone else. Check out this article from Inc. or this one from Entrepreneur for some great questions to ask.

Use the 60% Rule

We recommend choosing someone who has 60% or more of their experience working with businesses similar to yours. For example, if you’re a retail operation, find someone with retail experience. If you are a “C” corporation, make sure they’re well versed in doing corporate taxes.

Accounting demands can change based on industry and hiring someone with the right expertise and experience will mean they’ll likely be more fluent with the current laws and regulations that are most pertinent to your business.

Bottom Line

Hiring the right CPA can add a lot of value to your business by giving you the information you need in a timely manner. Don’t wait until you get to a breaking point before you take action –hire the right CPA or bookkeeper by following the three steps listed above and start 2016 on the right path.

Want to do some more research? Here are a few in-depth resources:

http://www.inc.com/guides/2010/04/choosing-an-accountant.html

http://www.inc.com/magazine/19911101/4959.html

http://www.businessnewsdaily.com/8039-find-small-business-accountant.html