Are you starting a business, but have no idea how to manage your business’ finances yourself? Do you find your business growing so quickly that you can no longer keep track of your business’ finances yourself? Perhaps it’s time to find an accountant! Below are a few things to consider to ensure you find the right accountant for your business.
Area of Expertise
If your business industry is an incredibly niche one, or you have complicated financial records and transactions that need to be managed, you may need to find an accountant who has worked with similar businesses or with the same conditions before.
You do not want to risk your business’ financial health on an accountant who is inexperienced in your business’ industry, as accounting duties such as filing taxes and managing your business’ financial accounts may be completed incorrectly.
For example, businesses in the mining industry have tax obligations such as fuel tax credits which regular everyday businesses do not. As such, it may be difficult for an account with n o prior experience working with a mining organisation to handle the tax obligations which mining companies have.
Similarly, large businesses have differing accounting needs than small businesses, and an accountant who is most familiar with working with small businesses may not be the best at meeting a large business’ accounting and bookkeeping needs. As such, it is important that you find an accountant who possesses an area of expertise that is relevant to your own business.
Online Versus In-Person
In today’s digital age, accounting services no longer need to be provided face to face. Especially with the increase of accessible accounting software, and professional online communication channels such as virtual video conferencing platforms (e.g. Zoom) and instant online messaging (e.g. Slack), online accounting services are also becoming much more popular.
Depending on your business needs and the communication methods you are most comfortable with, you will need to consider whether or not you want to work with a virtual accountant or an in-person accountant.
Costs may also play a factor, as virtual accounting services are often less costly than in-person or in-house accounting services. Be sure to weigh up the pros and cons, as well as research the accounting services available to you online and in-person before making a decision on who to work with.
Consider the Accounting Software Used
Most accountants will use popular record-keeping software such as Xero and MYOB to provide you with your services. Although – in most cases – you will not need to learn how to use these softwares yourself, you will still need to know how to navigate around them to track and understand your own business’ data. As a result, it may be worth considering the accounting software your potential accounts use, for the sake of accessibility and simple user interface.
If your accountant uses software which is unpopular, it may mean that the user interface is less developed, meaning it may also be harder for you to interpret your business financial information.
Make sure to consider the above factors when hiring an accountant and your business is sure to benefit from the extra hand!