As a small business owner, you cannot underestimate the value of each dollar. Meticulous accounting will help you determine the viability of your business.  

You may choose to use one of the many accounting software available online. But you’ll reap more benefits when you hire a professional accountant.  

An accountant will provide the following services: 

• account and record-keeping,  
• business advisory services,  
• tax advise, and  
• auditing services 

So, how do you find the right Quickbooks or Xero accountant?  

Let’s find out below. 

7 Essential steps to choosing a good accountant 

Determine the Key qualifications you need  

What services do you need from your accountant? The answer to this question will help you determine the qualifications you are looking for in an accountant.  

You can hire a non-certified accountant to handle business financial statements and bookkeeping. But for in-depth tax advice and financial analysis, you need an accountant who is certified and licensed. You can go for a certified professional accountant (CPA) or certified management accountant (CMA). Both CPAs and CMAs have business experience and are required to obtain continuing education credits. 

Apart from certifications, go for accountants who have some experience in your industry.  

Find a referral 

Most experts agree that the best way to find an accountant is by getting a referral from other businesses, your colleagues, friends, or attorney. Ask about their accountants and whether they are satisfied with the services provided. You can also get a referral from the Society of Certified Public Accountants in your state.  

Check out the referrals  

Perform a careful analysis of your candidate’s resume and certifications. Ask for client references. Call the clients to determine if they were satisfied with the services offered. You can also do a background check and look online to see if there are any complaints about the candidates you choose.  

 Determine how much work will be done by the accountant  

The volume work you need the accountant to handle is a crucial factor when choosing the right QuickBooks or Xero accountant. The work will also determine if you’ll hire a fulltime or part-time accountant. You can divide accounting services into  

• Recording and assembling business transactions 
• Generating returns 
• Generating financial statements 

Interview the Referrals  

During the interview, confirm the range of services that the accountant offers and communicate about the services you need.  

Additionally, ask about their availability and their preferred working location. Find out if they have any questions for you.  

Remember, an accountant needs to be someone you can trust with your money. A good one will save you money and help you grow your business. 

Evaluate your compatibility. Check out the accountant’s personality and find out how they will handle financial issues in your business.  

Here are some questions that you can ask during the interview: 

• Are you a CPA? (Not every accountant is certified) 
• What degrees have you earned? 
• When did you receive a license to practice? 
• Where are you licensed to practice? 
• What’s your area of specialization?  
• Who are some of your clients?  

Confirm the rates and fees 

Many accountants charge by the hour. But if they are part of a firm, they might charge a monthly retainer. You can get quotes from different accountants and estimate annual charges. Remember that higher fees usually mean more experience, which translates to more efficient services.  

Spell out the terms of the agreement 

After choosing an accountant, draft an engagement letter that shows the details of the services to be offered, including preparation of returns and financial statements. 

Regularly meet with your accountant to review your financial statements. Go over the numbers and identify cost-cutting opportunities. You can make your accountant’s work more comfortable by maintaining a good record of your checks and income sources.  

As a small business owner, realizing profits is a top priority. You are always looking for ways to cut expenses. As a cost-cutting measure, many small business managers avoid hiring accountants. These managers figure that they can handle the financial paperwork without any trouble.   

Unfortunately, in the long run, not hiring an accountant can be costly. Small business accountants do not just fill and file forms. A good accountant will help you grow your business by providing valuable information on strategic financial planning. Professionals will also manage your tax return account and save you lots of money in taxes. 

In this article, we look at several reasons why you should look at utilising the services of a tax advisor.  

But first here’s an important question.  

How much will an accountant charge to do my business tax returns and personal tax return services? 

Tax preparation prices vary by region, depending on the size of a business and the number of services that will be required.  

Most tax preparers will give you a customized quote.  

According to SCORE.org, a small business nonprofit organization, small business owners spend $1000 to $5000 on accounting costs.  

According to the National Society of Accountants, for the 2018-2019 tax season, the average cost of having an accountant prepare a federal Form 1040 income tax return was about $200 for the most straightforward returns.  

Here are the benefits of hiring a small business accountant 

1. You save time and money  

It’s no secret that filing tax returns can be a tedious and time-consuming process. Trying to beat the deadlines and file accurate returns can leave many small business owners stressed out. By hiring an accountant, you can have more time to concentrate on your business.  

Tax advisory accountants will ensure that you don’t miss any tax return deadlines so that you can avoid penalties. Plus, they will check all your documents to ensure that your returns are accurate. You can avoid refilling taxes because of errors in your forms.  

You can try tracking how much time you spend filing and keeping track of your tax returns. Compare the time spent with your hourly rate. Check how much you would spend on an accountant per month. Most often than not, it is cheaper to hire a professional to handle your taxes and compliance issues.  

2. Reduce your tax liability   

As your business grows, you’ll want to reduce your tax liability. A professional accountant will advise you on how to run your business in the most tax-efficient way so you can save money.  

You’ll need to learn how to maximize your tax deductions. This will involve keeping track of every single expense throughout the year so that you can identify potential deductions. Without an accountant, it’s challenging to track and account for the essential things like depreciation and out-of-pocket expenses. Accountants will help you strategically plan for year-end deductions.  

Because of their in-depth knowledge of the tax regulations, accountants will help you work out tax-saving strategies. Such strategies include timing income to lower taxes, tax credits, and funding pension plans. With a good accountant, you can take advantage of tax law changes.  

3. You get strategic financial advice  

Apart from offering tax compliance services, a professional accountant will give strategic advisory services to help you make critical financial decisions for your business. You can consult them before investing in high-value assets. They will advise you about the implications of hiring more employees. Accountants will also help you with budgeting and monitoring cash flow. Plus, you will get advice on the best legal structure for your business.  

4. You will plan for the Future   

Building a sustainable business is not an easy task. You need to take the time to plan for the future of your business. Unfortunately, day-to-day business operations can keep you preoccupied. An accountant can look at the big picture and help you set financial goals to grow your business.  

By examining your financial data and records, accountants will advise you on how to stay viable and competitive. You’ll know when to buy inventory. You can determine the best time to make big investments.  

You don’t have to be alone at the end of the year trying to make sense of a pile of invoices and receipts. You can partner with an accountant who will provide expert guidance on your finances so that you can build a successful business.  

Money Management Intelligence offers a professional intelligent accounting services to businesses on management their company accounts and taxation services . We cover everything to do with money management, loans, tax and accounting services. Our tax and accounting team will help your business to thrive in a destabilised economy.

There’s a lot of work that goes into running a small business. As a small business owner you’re probably so busy trying to provide the best products and services to customers that you don’t have time to handle the accounting and finances. Small businesses benefit from hiring small business accounting services to take care of things for them.

Small business accounting services have the right people for the job. These services provide accounting, bookkeeping, and tax services – along with other financial services you may need. It’s like having your own financial department at a fraction of the cost.

Services Provided by Small Business Accountants

Small business accounting services for professionals cover the most important aspects of accounting and finance. An accountant will handle financial reports, tax returns, tax strategy, and CFO services. We’ll take a deeper look at the services a small business accountant provides. At the heart of it all, you can expect the talented team of small business accountants to manage any financial-related issue to give you more time to focus on running your business.

Financial Reporting

Accountants can offer daily, weekly, and monthly financial reports and updates based on what you need. These reports ensure that you are up-to-date with the latest financial information about your business. The reports include;

• Balance sheets
• Monthly business performance review
• Income statements
• Trial balance reconciliation
• Custom financial reporting

Tax Returns and Tax Strategy

Small business accountants help to come up with tax strategies as well as handle the actual tax returns. These strategies help you to comply fully with any rules and regulations while ensuring you get the most out of your tax credits and allowances. These services include;

• Preparing for income tax
• IRS representation
• Audit support
• Tax planning
• Creating and organizing entities

CFO Services

The CFO team can provide services such as labor optimisation, cash-flow forecasting, and budget analysis. CFO services include coaching calls reports, and the following services;

• Budget-to-Actual Reporting
• Break-Even Analysis
• Cash-flow forecasting
• Variable vs Fixed Expenses reporting
• Debt planning and reduction
• Labor cost management

If you run a business and need help taking care of your finances, don’t hesitate to consult a small business accountant. The services they provide will be invaluable to you. With an accountant handling the financial side of things, you’ll have more time to focus on running your business and providing the best service possible.