Running a small business means dealing with a lot of financial tasks. You have to keep track of what you owe, what others owe you, yearly reports, employee pay, future earnings, cash flow, taxes, and whatnot. All these responsibilities can take up a lot of your time, especially taxes, which are also in line.
Adding to that, when you try to manage every part of your business on your own, it’s very likely to miss important details. And if you make mistakes in accounting, especially with taxes, it can cost you a lot of money.
For any expanding business, it can be challenging to allow another person to handle these tasks. Nevertheless, if there’s a domain where it’s wise to allow an expert to lead, it’s accounting. A good accountant can help you prevent expensive errors and act as your company’s financial advisor.
So, how to find an accountant for a small business? And how to evaluate the best one?
Let’s take a look.
Determine Your Small Business Accounting Needs
Before you start figuring out how to find an accountant for a small business, consider your business’s priorities. Clarify your goals and specify which responsibilities you would like your accountant to manage for your business. Here is a collection of standard accounting services for small enterprises tailored to your unique needs:
- Establishing business procedures: Every organization needs specific tactics to guarantee smooth operation. In the absence of these processes, you cannot guarantee that tasks like shipping, receiving, and billing are executed correctly. An accountant can collaborate with you to ensure that everything operates smoothly.
- Creating invoices: An accountant can produce and send invoices to your clients, helping you to collect payments professionally and generate income.
- Monitoring invoices: Staying updated on the payment status of your invoices can be difficult, especially as your business scales. Your accountant can monitor who made their payments and who hasn’t, allowing you to gauge your available cash and decide if reminders should be issued.
- Maintaining sales records: To ensure your business grows, understand what you’re selling, the quantity you’re selling, and your profits. An accountant can monitor your sales and create frequent reports, keeping you updated about your business.
- Prepare and submit your tax returns: Numerous small enterprises must file their taxes quarterly, and if you’re not vigilant, those deadlines can arrive fast! An effective tax accountant will assist you in staying organized and in preparing and submitting taxes while ensuring all deadlines are met.
- Managing payroll: An accountant can calculate your staff’s salaries, inform you of the amount to withhold for quarterly payroll taxes, and take care of everything else.
Get all of the above and more with Focus CPA. Even beyond, receive personalized solutions like bookkeeping services, CFO advisory consulting, and business valuation services to keep your business afloat in the long run.
Qualifications to Look for in a Small Business Accountant
An accountant should hold a basic accounting degree. While figuring out how to find an accountant for a small business, look for both professional and industry-specific accountant qualifications for small businesses.
Professional Certifications
An accountant can pursue different professional certifications to offer specialized services in the role of :
- Enrolled Agent (EA)
- Certified Public Accountant (CPA)
- Certified Management Accountant (CMA).
| Certification | Description | Requirements | Best For |
| EA | Experts in individual and business tax laws, with unlimited rights to represent clients before the IRS. | Pass an in-depth IRS exam + 72 hours of continuing education every 3 years. | Small businesses who need tax preparation and IRS audit representation. |
| CPA | Licensed to prepare and sign tax returns, perform audits, and represent taxpayers before the IRS. | Pass the CPA exam + meet state-specific licensing requirements. | Businesses requiring comprehensive accounting services, including audits and tax filing. |
| CMA | Specializes in business strategy, risk management, budgeting, and financial data analysis. | Pass the CMA exam + 2 years of professional experience. | Companies seeking leadership in financial planning, strategy, and management. |
Industry-Specific Experience
One of the most important factors in choosing a CPA is industry-specific and software experience. Here’s what to check:
- Industry Experience: Accountants who understand your specific industry can give you advice that really fits your needs.
- Technical Skills: The accountant should be skilled in using software like QuickBooks, Xero, or other online accounting systems to work efficiently.
Know how Focus CPA provides Quickbooks accounting services.
Where to Find Qualified Small Business Accountants?
If you’re wondering how to find an accountant for a small business, it starts with knowing where to look. Here are some reliable places to begin your search:
- Word of Mouth: Getting recommendations from your friends, family, or other business owners who have had good experiences with hiring accountants.
- Professional Organizations: The American Institute of Certified Public Accountants (AICPA) is a trusted place to find accountants. They have a directory of local business accountants and CPAs.
- Industry Associations: Many industry groups maintain lists of recommended accountants with experience in your specific sector.
- Online sites: Use job websites or networking sites where you can find accountants who have ratings and reviews from clients.
Evaluating Potential Accountants for Your Small Business
Knowing how to find an accountant for a small business begins with asking the right questions. After potential candidates are narrowed down, carry out comprehensive interviews to assess their fit for your company. Here is a compilation of inquiries you can pose to assess prospective accountants for your small business:
Below is the list of questions that you can ask to evaluate potential accountants for your small business:
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Understanding Accounting Service Fees
Accountants may bill by the hour, provide a fixed fee, or use a mix of both. Ensure you comprehend their billing process and the services provided to make the optimal decision.
Typically, the accounting expenses can differ based on your geographic area, the services you need, and the accountant’s expertise.
On average, an accountant costs $150 to $400 per hour if he is a Certified Public Accountant. However, for a junior-level accountant, it costs $40 to $100 per hour.
Here are some common accounting fee models:
| Fee Model | Description |
| Hourly Fees | An accountant charges a set rate per hour for their services. The fees increase as per the experience. |
| Fixed-Fee Pricing | Some accountants charge a flat monthly rate based on the size of your business and the certain number of services you need like tax preparation |
| Value-based pricing | This is based on charging fees according to how much value their services provide to clients. They can charge higher for their expertise and strategic advice that helps a business succeed. |
Pro Tip Always ask which services are included in each fee structure to get the exact support you need. |
Ready to Find the Right Accountant for Your Small Business?
Hiring a good accountant assures two things: one, it saves your time, and another, it makes sure that your business runs smoothly. And what else can be better than getting help from an accountant who knows a lot about finances?
The solution is simple: At Focus CPA, we handle everything for you, from overseeing your finances to keeping your business on the correct path.
We have accountants who grasp your objectives, align with your growth vision, and can provide you with valuable insights that can positively transform your business.
Are you ready to find the best accountant for your small business? Visit the CPA firm in California that offers their services nationwide for your business needs today.
Apart from this, we can help you with incorporation services, virtual CFO services, and more. Get in touch now.
Frequently Asked Questions
For small enterprises, it's advisable to consult with your accountant a minimum of once every three months. In this manner, you can review your financial status, discuss any problems, and prepare for tax deadlines.
Yes, an accountant can help you with your business loan application. A skilled business accountant can help you manage your finances effectively when it's time to apply for a small business loan.
They can answer lenders' questions about your current financial situation and your expected revenue. They can also give you advice on interest rates, terms, and conditions related to your loan offer.
A small business accountant needs to be skilled in utilizing the newest accounting software, such as QuickBooks, Xero, or FreshBooks. They must also feel at ease with cloud-based platforms to receive updates instantly and access your data effortlessly.
When you employ an accountant, the fundamental accounting principles remain unchanged. However, a significant distinction exists between online businesses and physical small businesses regarding transaction tracking. Online enterprises typically require specific abilities to manage numerous digital transactions and oversee their inventory. Conversely, physical retail stores engage more in conventional accounting activities, such as tallying tangible inventory and monitoring sales receipts.
When choosing an accountant for your small business, watch for warning signs and red flags that could indicate they aren't the best fit for you, including:
- Delay in answering: If an accountant takes an extended time to respond to your inquiries or is vague, it could indicate a lack of professionalism.
- Insufficient industry expertise: Avoid accountants who are unaware of the unique obstacles your business encounters.
- Ambiguous charges: If an accountant isn’t clear about their fees, that serves as a red flag.
