Habits of a Good Accountant=Habits of Good Business
What are the habits of a good accountant that makes an accountant good? The bottom line is that searching for a good accountant will be worth every cent you pay them as they will be able to see what’s missing, offer short and long term solutions and suggest various reports that will benefit you. They are a major resource in every successful business. There are lots of great accountants out there, which you can oftentimes find through referrals. Ideally, do recruit one with experience in your industry and exercise a reasonable amount of caution as said person will be very intimate with your accounting books. A good accountant will undoubtedly cost a fair amount of money, but is certainly much cheaper than having to resolve cash flow shortage issues every other day.
Should You Hire an External or In-House Accountant?
Many small businesses prefer to employ part-time or external accountants due to costing reasons. However, hiring an in-house accountant should be one of the main priorities in any fledgling business as these are the professionals most qualified to provide you up-to-date advise on your cash flow condition, while also ensuring that your bookkeeping is up-to-date. After determining the type of accountant you need for your business, you can then consider hiring according to the following criteria:
An in-house accountant might not require certification as their main role would be to handle your business’ financial statements, analysis and practice bookkeeping. At the very least, he or she may be a Certified Management Accountant (CMA). However, you will require a Certified Public Accountant (CPA) to prepare your tax returns and provide advice on taxation as well. The CPA would also have other qualifications, including being Accredited in Business Valuation (ABV), Certified Valuation Analyst (CVA), and Personal Financial Specialist (PFS).
Besides qualifications, your accountant should also have experience in your industry. An advantage to hiring an accountant with a relevant background, such as in the fitness, construction or retail industry, is that they are specialists who can help in resolving certain special cases or issues that may arise.
Three: Size Matters
This criteria is applicable to businesses who choose to hire external accountants. With a wide array of accounting services provided from sole practitioners to large, name-brand firms, selecting the perfect accountant for your business can be overwhelming. At the end of the day, your accountant should be one who can fit into the culture of your business. Large firms may seem much more assuring, but do take note that firms working at over capacity can also sometimes contract out work to smaller accounting firms as well.
Choosing the right accountant for your business can make all the difference in your cash flow condition. Read more about Inc’s article on what you should ask your prospective accountant before you hire.