As a small business owner, managing your finances and staying on top of financial records and income tax can quickly become overwhelming. Whether you’re handling payroll, filing your tax return, or planning for growth, having a reliable accountant can make a big difference. But how do you know when to hire one? And more importantly, how do you find the right accountant for your business?
In this guide, we’ll walk you through the key steps to finding an accountant, what to look for, and how to ensure they’re the right fit for your needs.
Signs it’s time to find an accountant for your small business
As your business grows, managing finances can become more complicated. Here are some signs that you’d benefit from hiring an accountant to take those tasks off your plate:
😬You’re spending too much time on bookkeeping instead of growing your business: If most of your focus is on organizing and tracking financial records instead of activities that bring in more business, like marketing or customer outreach, you could use some additional support.
🤔You’re unsure of IRS tax laws, regulations, and deadlines: If you’re not an expert at something, it’s best to ask for help – especially when it comes to important things like tax code, tax preparation, deadlines, and deductions. Avoid making mistakes by bringing on a tax professional who knows what they’re doing, so you can make sure your business taxes are paid correctly and on time.
📈 Your business is expanding and finances are becoming more complex: As you grow your business’s revenue, you’ll probably want to increase your headcount. Suddenly, the need to manage business accounting, payroll, and financial reporting becomes even more complicated. The guidance of an accounting professional can allow you to manage these moving parts with confidence.
🚀You’re planning for a significant event: Whether you’re applying for a loan, seeking investments, or planning to expand your operations, an accountant can help prepare financial statements and projections.
😩Tax season is stressful: Tax regulations are one thing that most business owners need help with—but so is the regular process of filing your personal and business taxes. Unless you truly understand how deductions, credits, and the process of securing a tax refund work, it’d be nice to have a tax accountant making sure you’re handling those responsibilities correctly.
Professional help goes a long way in helping you stay on top of your financial situation and compliance needs without sacrificing the other important areas of your business.
Where to find the right accountant for your business
Once you decide to hire an accountant, it’s important to find one who understands your business and its unique needs. 🔍 Here are a two places to start your search:
📣Ask peers, mentors, or other business owners for recommendations: Referrals from fellow entrepreneurs – especially those in your industry – can help you find an accountant who’s already proven their value. These business owners know the specific challenges you face and can point you toward a good accountant.
🤝Leverage networking events, online communities, or industry-specific groups: Local business meetups and online message boards can be great opportunities for discovering accountants who understand your industry. An accountant familiar with the specifics of your industry can provide more personalized tax advice and solutions. Using Relay’s accountant directory can streamline this process by connecting you with trusted professionals.
Remember, every accountant is different. Not everyone specializes in small business accounting or financial planning. It’s important to your time and perform due diligence when choosing the right person for your business.
Now, let’s talk about what to look for once you start meeting potential accountants. 🤝
What to look for when choosing an accountant
When you choose an accountant for your small business, you're not just picking someone to crunch your numbers. 📊 You’re forming a strategic partnership with a financial advisor who will hopefully help your business grow, become more profitable, and avoid costly mistakes 🚫.
This person will have access to your sensitive financial records and provide guidance on your biggest financial decisions. That’s why it’s important to find an accountant you can trust and who suits your business's unique needs.
As you begin your search, be sure to keep these important factors in mind:
Areas of specialization
Finding an accountant with expertise in your industry and business size or stage is important. 🔍For example, an accountant who specializes in mid-sized startups will understand the unique challenges that these entrepreneurs face. Others may focus on self-employed individuals who are still in the beginning stages of their business journey.
Location, location, location
If you choose a local accountant, versus one on the other side of the country, you can be more certain that they are familiar with your state’s income tax laws, business regulations, and financial requirements. If you need help finding a match in your state or city, check out Relay’s accountant directory—it allows you to filter your search by specialization and location to find a great match. ✅
Credentials and experience
Verifying an accountant’s credentials and years of experience is key. Look for certifications like Certified Public Accountant (CPA) or Chartered Accountant (CA). If you’re hiring someone to help with your taxes, be sure that they have a Preparer Tax Identification Number (PTIN), too.
These qualifications indicate that they meet high ethical standards and have the knowledge to navigate complex situations. It's also a nice bonus to pick someone who has experience navigating different tax situations in your industry, specifically.
How to conduct interviews with potential accountants
Once you’ve narrowed down your list of candidates, it’s time to interview them. Just like hiring an employee in any other area of your business, take your time here. This is one of the most important decisions you might ever make for your business, so avoid rushing the process.
Questions to ask before hiring an accountant
Here are a few interview questions to ask any potential accountant you meet with.
📋What services do you offer? In addition to basic accounting tasks, see if they provide services like tax planning, tax preparation, financial analysis, or advisory support. A well-rounded accountant can bring extra value to your business. Remember that not all accountants also offer bookkeeping, too, so if you need that service, be sure to ask about it.
📞 How do you typically work with clients? It’s good to know their preferred communication methods and frequency. Ask if potential accountants prefer email, phone calls, video calls, or an in-person meeting to chat face-to-face. Find out how often they would provide updates on your financial information.
📂Can you provide examples of clients in a similar industry? Ask if they have experience with businesses like yours. Relevant experience ensures they understand industry-specific challenges and tax requirements, making them better suited to meet your needs.
💰How do you charge for your services? Find out whether they charge flat fees, hourly rates, or project-based pricing. Clarifying this helps you understand their billing approach and any additional costs you may have to pay.
🧑💻What tools or software do you use? Compatibility with your existing accounting software is crucial. Whether you use QuickBooks, Xero, or another system, ensure they are familiar with it to make sure they integrate smoothly with your business operations.
As you’re interviewing accounts, don’t overlook the importance of checking an accountant’s background. Ask for references from previous clients and look for online reviews.
Speaking with past clients can also give you valuable insights into their work quality and reliability. 📞And if you want to speed up the process, Relay’s accountant directory can give you access to pre-vetted accountants with verified reviews. ✅
Know what you’re paying for: accountant fees
Before signing an agreement with an accountant, make sure you understand an accountant’s fee structure and what services are included. Here’s what you need to know about the different ways that accountants charge for their services.
Understanding accountants’ fee structures
Accountants often offer various pricing models, and knowing which model best suits your business can lead to a more cost-effective partnership. Here are the common fee structures:
⏳Hourly Rates: Some accountants charge an hourly rate, which is a good scenario if you only need assistance periodically or for specific issues. You only pay for the time needed to accomplish what you need. However, for ongoing services, this fee structure can become unpredictable.
💰Flat Fee: Alternatively, a flat fee provides a set price for a defined scope of services, offering more budgeting stability for year-round support. Small businesses may benefit from flat fees, especially if they need continuous support with clear boundaries, such as monthly bookkeeping or annual tax filings.
📦Packages and Retainer Models: Some accountants offer tiered packages or retainer agreements that bundle several services, which can be beneficial if you have multiple needs, such as payroll, tax filing, and financial planning. These packages often come at a discounted rate compared to selecting services individually.
💡Tip: When discussing fees, ask exactly what services are included. 💬For instance, a monthly flat fee may cover bookkeeping, basic tax support, and financial reporting, but might exclude advisory services or additional filings. 📋This clarity helps ensure you’re getting the support you need without surprise charges.
How to find an accountant that fits your budget
You don’t need to sacrifice quality to find an accountant who fits into your preferred budget. First, assess what accounting support you truly need and then determine what level of service those needs require.
Here are a couple of tips to help you find an accountant within your budget:
💰Compare pricing and fee structures: It’s always smart to shop around and make comparisons. Meet with multiple accountants and compare their pricing models and what they include. This approach allows you to understand market rates and evaluate who offers the best value for the services your business needs.
📈 Plan for flexibility: If you anticipate growth, it may be worth investing in an accountant who offers scalability, meaning their services can expand as your business does. This may involve a higher initial cost but can save you from switching providers as your needs evolve.
🎁Ask about package deals: Some accountants may offer a bundle of services at a discount price, such as combining tax preparation, bookkeeping, and financial advice. Ask about bundled packages to possibly get more services for a lower overall cost.
Cost matters, but so does compatibility and communication
Finding an accountant who is not only skilled but also a good fit for your business is a big part of your long-term success. In addition to their financial expertise, an accountant's communication and working style can significantly impact your business relationship and growth. Here’s how to evaluate these aspects.
Assessing communication style
A great accountant does more than just crunch numbers. They also communicate clearly and are responsive to your needs, especially if you lack financial expertise.
For example, an effective accountant should explain financial terms and concepts in simple language, ensuring you’re comfortable with your business’s financial picture. Clear communication fosters confidence and prevents misunderstandings. 🗣️
Reliable accountants should also maintain regular contact with you and respond in a timely manner to questions and concerns. 📅 Their responsiveness helps you stay informed and prepared for any important financial developments or deadlines.
💡Tip: If you ask the interview questions outlined above, you’ll be on your way to properly assessing your accountant’s communication skills—before you sign the dotted line. ✍️
Assessing long-term compatibility
An accountant’s working style also matters. Consider what you personally need from your accountant, and how you like to operate in your business. Then, look for an accountant to complement you, so you can collaborate closely to grow your business. 🙌
For example, do you prefer proactive or reactive communication? Some accountants are very proactive, offering insights and recommendations for improvement even when not explicitly asked. 🔍 Others may be more reactive, waiting for issues to arise before acting. Determine which approach aligns better with your business style and needs.
Ready to find the right accountant for your business?
Finding the right accountant for your small business can make a world of difference in managing your finances and fuelling your growth. 🌟 As we’ve discussed, it’s important to recognize when you need help, know where to start looking and understand what to prioritize in your search.
Ultimately, an accountant who understands your goals and shares your growth vision can offer valuable, ongoing advice that can transform your business. This type of alignment can enhance financial planning, improve cash flow management, and support sustainable growth.
Ready to find the perfect accountant for your small business? Check out Relay’s accountant and bookkeeper directory to connect with professionals who have the right experience, are nearby, and offer the services you need. 📈
