Here's How to Find the Right Accountant for Your Small Business

Don't put the wrong person in charge of your business' finances.

If all small business owners were required to have training in accounting, it's a fair bet that a lot fewer people would open their own businesses. Fortunately, anyone can open a business, and according to the Commerce Institute, 5 million new businesses were started in 2022 alone. That creates a lot of work for accountants and bookkeepers, and if your business was among the 5 million begun last year, you might be searching for one yourself.

An accountant should be your first hire if you're a business owner, as a good one can help ensure your success by making it much, much easier to manage your finances. Here are the steps to take to ensure you end up with the right accountant for your business.

Figure out your needs

If you're in the early planning stages of starting a business, it's likely too early to formally hire an accountant, but you should at least be thinking about the income potential and structure of your business. These factors will impact your accounting needs. After all, it's much simpler and more straightforward for an accountant to handle you as a client if you have a sole proprietorship and mostly require help in planning for quarterly taxes and filing an annual return.

Put some serious time into creating your business plan and identify the financial concerns you'll need help with. This could include maintaining cash flow, doing payroll, and identifying areas for business growth.

Ask people you know for a recommendation

Thanks to the miracle of the internet, you are no longer limited by proximity for hiring an accountant. If you have an excellent accounting firm right in the neighborhood, you should definitely ask for a consultation to see if they're taking on new clients and can meet your needs. But don't be afraid to look further afield for recommendations.

For example, when I started freelancing last year, I knew I needed an accountant to help me handle taxes. I asked a bookkeeper I used to work with for a recommendation, and while both she and my accountant are in a different part of my state, it's easy to get in touch via email and phone, and I can email tax documents as needed. If you know a network of other business owners, ask them for some names and details of their experiences with accountants who work with businesses like yours.

Get the right information from your candidates

When you've got some names in mind to ask about accounting services, it's important to get the right information in those initial conversations. After all, you don't want to waste their time or yours. Focus on the following:

• What is your background? You want to know how much experience they have working with similar businesses.
• How do you communicate? There's nothing worse than having a list of pressing money questions and not being able to get them answered. Find out if you can have regular phone calls or meetings with your accountant, as well as the best way to share necessary documents with them.
• How much do you charge? You definitely need to know how much their services will cost you, as paying for them will come out of your business' profits.

Working with the right accountant is crucial to the success of your business, so it makes sense to take a measured approach to hiring one. Know what your needs are, get recommendations from people you trust, and when you make contact, ask the right questions to see if they're a fit.