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Start a dialog with your prospective accountants to make sure they’re easy to talk to and interested in listening to what you need. On average, professional tax preparation costs fall between $220 (filing a Form 1040 for a self-employed individual) and $800 (filing a Form 1120 for a C corporation). If your accounting prospects are members of one or more professional organizations, the organization has done a bit of the vetting for you. Tax laws are complex, and an experienced accountant can help you navigate them and minimize your tax burden. Their response to this question shows their understanding of industry-specific tax issues and how they can help you avoid them.

• The accrual method of accounting tracks income and expenses as they occur.
• Many accountants offer flexible arrangements where they work hourly, per project, on a quarterly basis or other options.
• Tracking income and expense management can be messy, inventory tracking is next to impossible, and your sales tax liabilities may be more difficult to determine.
• For instance, do you want the flexibility of a cloud-based, online accounting software solution so you can access your financials from anywhere?
• If your accounting prospects are members of one or more professional organizations, the organization has done a bit of the vetting for you.

Key Question #2: How Do They Communicate with Clients?

Why pay for someone’s services when you can secure them for yourself for a fraction of a fee? Managing your business’s finances can be complicated and confusing if you don’t have a background in business accounting ― even if you have the best accounting software. “There can be a lot of loopholes that you’re not going to be aware of, especially with tax laws changing,” Cordano explained. It’s important to ensure your accountant is an expert in your chosen accounting software so that they can answer questions and provide training if there’s a steep learning curve. More than likely, unless you hire an in-house accountant, you’ll need to be doing some of the work in your small business accounting software. This may include entering and paying bills, invoicing clients, and reconciling your bank accounts.

• A good small business accountant can translate complex tax laws into actionable strategies for small businesses.
• It’s also important to keep records of any agreements with vendors and suppliers, bank statements, documents showing payment of estimated quarterly taxes, and annual tax returns.
• Listen for words like planned, restructured, educated and documented in the advisor’s answers — these are legitimate.
• Someone on our team will connect you with a financial professional in our network holding the correct designation and expertise.

Knowledge of Accounting Principles and Practices

• Small business owners need to be on guard for the places that tell them they can do it all.
• Susan Ward has run an IT consulting firm and designed and presented courses on how to promote small businesses.
• So you’ll be aligned with your accounting professional on accounting software upfront.
• Not all accountants offer all of these, so make sure they can do everything you need them to do.
• They track sales and expenses, keep an eye on cash flow, bill clients, and pay invoices.

And when a business accountant helps you with tax credits and deductions, you can end up saving hundreds (if not thousands) on your yearly taxes. If you already have accounting software you like, find out if they have an accounting partner program that certifies accountants in that software. They may match users with accountants who work with the same accounting software. So you’ll be aligned with your accounting professional on accounting software upfront. Plus, with software like FreshBooks that’s built for the needs of small businesses, you’ll be matched with a like-minded accountant or bookkeeper who is equipped to serve clients like you. Bookkeepers take your day-to-day transactions and record them in your accounting software (yes of course accounting software like FreshBooks).

Look for Experience

Find out if you will work directly with the accountant or if they have employees who will handle your books. Don’t weigh them down with dozens of written questions https://www.bookstime.com/ to answer. A ten-minute telephone call is likely to tell you far more about your prospective accountant than a three-page form full of bland written answers.

• These business credit cards that offer a convenient and efficient way to separate personal and business expenses, simplifying accounting and tax reporting.
• Good business accountants typically have recommendations, a positive track record and are responsive communicators.
• If your business doesn’t already have accounting, payroll, and tax software, now might be a great time to introduce it.
• Your business accountant will be an integral part in developing and reaching your business goals, so finding the right one needs careful planning.

Once you find a location, check out the IRS’s list of what to bring to your tax appointment before you go. According to the IRS, most VITA and TCE sites won’t appear in search results how to find accountant for small business until about three weeks before they’re scheduled to open. If you search for a site outside of mid-January through April, you may have a difficult time finding one near you.

How to Find a Small Business Accountant in 2024: Your Complete Guide

Before you sign up for just any business accountant, ask whether the candidate has any experience in your given industry. Many accountants specialize in certain industries, so if you run a very specific business with certain accounting needs, you’ll want an advisor who has experience in your industry. If you hire the right business accountant, he or she can be a trusted advisor throughout the entire lifespan of your business. They have a good grasp of how your business manages its money, after all, so you’ll want to put time and effort into finding the right business accountant for you. So if you’re bringing in a lot of revenue but having a hard time holding onto that as profit for your business, an accountant can help.

Use the local society of CPAs directory

They can identify industry-specific tax deductions and help streamline your financial processes based on what works best for businesses like yours. While not all small businesses need a CPA, if your organization is growing quickly, it’s definitely worth exploring options for outsourcing accounting to a third party. A common example is seen with the variations that a service-based business might experience.

An even better option is to choose collaborative, cloud-based accounting software with encryption built in. This will mean you don’t have to worry about the risks involved in exchanging data back and forth. When searching for an accountant, the ideal candidate might be right under your nose. Start by asking any friends or family members who own small businesses if they would recommend their accountant.

Should I use a CPA or tax accountant?