Many small business owners try to do their own books, but many times, that can lead to profit loss in the best case scenario, and a meeting with a representative from the IRS in the worst case.  These business owners believe that by doing their own books, they’ll save money because they won’t have to pay accounting fees.  But that may not be case.  A good accountant will act as more than just a number cruncher—he can usually save a business owner money by evaluating business financial practices, and even by helping plan for expenditures and expansions.  If you’ve never thought of hiring an accountant for your business, let’s first take a look at what you’ll need to consider, and then how to keep the costs to a minimum.

Considerations When Hiring an Accountant

Just hiring an accountant isn’t enough—he or she will have to be the perfect fit for your company or it may just end up being a bad investment.  But you can help ensure that the fit is a good one by paying close attention to these three areas.

• What’s their experience?  Many accountants specialize in a particular industry, and your best case scenario is to find one that specializes in your industry.  By doing this, you’ll ensure that your account is already up to speed on the subtle nuances of your industry.  For example, if you run a window coverings business, you’ll want an accountant who understands that you should keep your books on a cash basis, rather than an accrual one. If you need a referral to an accountant, check the American Institute of CPA’s or check with your local Society of Certified Public Accountants.
• Do you get along? When working with someone who will be giving you financial advice and guidance, it’s important to determine not only whether you get along personally, but whether your business styles are compatible as well.  For instance, if you’re not a big risk taker, you wouldn’t want financial guidance from someone who sees big risks as a part of doing business.  When interviewing accountants, be sure to ask them each about how they would handle specific scenarios to determine whether or not you think alike.
• What do they charge?  Accounting fees can vary—from about $100 per month to close to $300.  A larger firm generally charges more for their work than an independent accountant, but they also may be able to offer more services, like tax and estate planning.  Be very specific when you interview accountants, and ask not only for their fees per service, but try and get an estimate of your yearly fee total, as well as their payment schedule for a monthly retainer plan.

Once you’ve hired an accountant, it will be up to you to keep the fees as low as possible.  Luckily, there are things that you can do to accomplish this.

• Do the Daily Maintenance.  By simply marking who a deposit is from, or what account you’re writing a check against, you will save your accountant loads of time.  And since most bill by the hour, that amounts to valuable savings for you.
• Communicate often.  If you dump a huge box of information on your accountant’s desk every couple of months, you’ll end up paying a lot of fees for them to go through everything and get up to speed.  But if you submit your information once a week in an organized fashion, your accountant will simply be able to log it in—resulting in a reduced number of billable hours for you.
• Ask for advice.  Before making a big financial move—such as a purchase or expansion—talk to your accountant and tell him your intentions.  Because he will be intimately acquainted with your books, he may see something that you hadn’t thought of, which could result in savings for you.

Hiring an accountant is an initial outlay financially, but it’s one of those that may end up saving you money in the long run.  The key is to hire thoughtfully, work together intelligently, and plan towards a common goal—the success of your business.