Finances are crucial to any business owner, and a successful company knows that every dollar counts. Some business owners believe that “do-it-yourself” accounting software is all they need to manage their finances, but the most successful companies know that they need to bring in experts to help.

Before you hire an accountant, make sure you know what qualifications and services your business needs.

Why Choose to Hire an Accountant?

Hiring an accountant can be beneficial at any point of the growth of your business. The right accounting hire will give you the financial security that your company needs. While your books are being handled by a professional, you will have time for other tasks. With all that free time, you will be able to focus on building your team, expanding your customer base, and generating revenue.

Accountant Qualifications

An accountant should have the experience and qualifications necessary to perform the required tasks. Before you can hire the right accountant for your business, you need to know what qualifications to look for.

Here are some general guidelines for choosing the right candidate to handle your books.

College Degree

Requiring accountants to have a college degree is a common business practice.

Most available positions in the country require at least a Bachelor’s degree.

Some businesses prefer to hire and train inexperienced candidates. These employees may not have a lot of experience, but they are often innovative, have good skills and instincts.

If these qualities are more important to you than experience, you may want to consider hiring an accountant who is looking to continue their education and train them on the job.

CPA or CMA

Before hiring an accountant in a business organization, check whether they need to be a certified public accountant (CPA). The lesser title CMA, or certified management accountant, means that the candidate has passed the necessary exams and has a good understanding of business accounting and income tax.

Integrity

Whoever you hire as an accountant will be responsible for your business’s financial records. You will want to be sure that this person is honest. Make sure you do a thorough background check on the candidate before hiring them.

Areas of Expertise

There are four main areas of expertise in accounting practices. Knowing about the details of each accounting area will help you make a more informed decision about what you are looking for in a candidate.

Business Advisory Services

Whoever you choose to employ should be someone who is familiar with your business environment, your tax situation, and your financial records. Consider hiring someone who can perform a broad range of services such as helping you develop a business plan and personal financial plan.

Accounting and Record Keeping

Accounting and record keeping are basic accounting practices. Accountants manage day to day records. They are also capable of setting up bookkeeping and accounting systems and teaching you how to use them.

Tax Advice

Accountants who provide tax-related assistance will typically do so in two areas: tax compliance and tax planning. While tax planning lowers your tax burden, compliance refers to tax law enforcement. Both are necessary for running a successful business.

Auditing

Banks are most often expected to provide auditing services as a requirement of a loan.

Interviewing and Hiring an Accountant

Now that you are ready to fill the accounting position, consider getting an accounting referral from your attorney, your banker, or a business colleague. Referrals ensure that you are interviewing candidates who already have professional experience, qualifications, and positive reviews.

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