Feb 06 Working With A Business Accountant
More and more businesses accurately perceive the considerable benefits that there are in developing a relationship with a trusted business accountant. Whether they are choosing to hire their own internal accountant or accounting staff, or they are choosing to work with a Clifton NJ business tax service provider for their tax and accounting needs, these businesses are making a commitment to cultivating sustainable financial habits for their business. Let’s say you’ve developed an understanding of what a productive working relationship with an accountant would mean for your business; yet, you understand the importance of finding the right person. Many businesses avoid developing taking their accounting practices to the next level not because they have any aversion to doing so, they are simply mystified by the process of finding the right person to work with. Often, the more successful a business is, the more this may hold them back; successful businesses understand the necessity of working with the right people. When it comes to bringing in someone new to play a vital accounting role and develop a thorough understanding of the ins and outs of their organization, many business owners are understandably skeptical it can be done at all. If your business or nonprofit organization is looking to work with a business tax professional, here is a list of steps you can take and things you can look for to help make a decision that contributes to your long-term success.
Assessing Your Need
Perhaps the first thing to consider when trying to decide on the right accountant is a dilemma already mentioned above: Should you hire an internal accountant or hire an accounting firm? Ultimately, the answer to that question will depend on the nature of your specific business needs. In most cases, organizations do not perform a high enough volume of financial transactions to warrant the hiring of their own full-time accountant. If your organization has needs related to issues that have built up over time, or a specialty accounting issue that has been a surprising, recent development, an accounting firm may be the best option. They are often equipped to provide case-by-case analysis and problem-solving advice. Accounting firms are of course also able to handle the more routine aspects of accounting including preparing tax returns and financial statements. If you’ve settled on hiring a firm versus hiring an internal accountant, however, you still must make a considered decision about which firm to work with. Hiring a firm with experience in your particular niche or market is usually advisable. The size of an accounting firm may also play a role in your decision-making.
There are some basic qualifications to look for when you hire an accountant. One acronym commonly associated with accountants is CPA (Certified Public Accountant). These accountants have undergraduate degrees and have additionally met the requirements for state certification. State certification requirements usually entail an exam as well as an experience requirement. Certified Management Accountants are qualified and credentialed to handle the responsibilities related to business management in addition to accounting. Beyond the CPA and CMA, there are many other types of accountant certifications to look for—some may even be specific to your industry. Since these credentials often stipulate continuing education, experience and examination, they are a big help to those looking to hire a person capable of handling their accounting job.
Referrals may not be necessary if you have a very specific accounting need in a specific industry; however, they may also outweigh any of the other previous factors listed. In many cases, the testimony of a friend, business acquaintance or convincingly-satisfied customer of a financial services firm can be a powerful motivator in your decision. Do not hesitate to reach out to an accounting firm and ask for referrals, especially if they are able to put you in contact with a business they helped through an accounting situation similar to your own.