Running your business is difficult enough without including managing your business’s finances and books. Financial management of your company can involve potential landmines. If you make a wrong choice, your business could lose money, face penalties, and deal with tax consequences. To make sure that you avoid accounting errors and ensure your books are accurate, you might consider hiring an accountant. Finding the right firm for your small business accounting needs will require you to know the steps to take. Here is some information to get you started from TMD Accounting.
Why Do I Need an Accountant for My Small Business?
If you’ve never worked with an accountant, you might not understand whether you need one for your business. There are multiple reasons why you should work with an accountant to help with your business’s finances. Some of the benefits an accountant can offer include the following:
- Ensure the accuracy of your books
- Assist your business with budgeting
- Simplify tax filing
- Provide strong device for business decisions
- Answer your accounting questions
- Ensure your bases are covered in the event of an audit
An accountant can ensure that your books are current and accurate. While accounting software can help with tracking day-to-day transactions, you should partner with an accountant to review your books on a regular basis.
Identify the Accounting Services You Need
Once you’ve decided that you should find an accountant, you will need to determine which accounting services you will need. Some of the types of services accountants offer include the following:
- Financial analysis
- Tax return preparation
- Management of your books
- Financial statement preparation
- Management of payroll and payroll taxes
- Ensure regulatory compliance
- Completion of year-end taxes
After you have determined which services your business needs from an accountant, you can move forward with searching for the best accounting firm to meet your needs by taking the following steps.
Ask for Referrals From Other Business Owners
A great way to narrow down your list of potential accountants is to ask others you trust for referrals. Ask your family, friends, and fellow business professionals for their recommendations of the accounting firms they trust. You can also ask your attorney or your banker for recommendations and ask members of your business network.
Once you have gathered several referrals, research the options by reading online reviews. Make sure the reviews you read are authentic by checking their consistency over time and the validity of the profiles that the reviews are attached to.
Research on Your Own
Whether or not you receive quality referrals, it is also a good idea to research on your own to find the best accountant. Try searching online, reading reviews, and looking at a business directory. When you read reviews, be sure and read both those that are positive and those that are negative. This can provide you with a picture of the experiences of others. If you identify accountants in a business directory, follow up by searching the firms online to read about others’ experiences. Once you have done your homework, you should have a list of a few prospective firms.
Interview Prospective Accountants
Once you have a list of a few accounting firms, schedule time with each one to interview them. This can help you see which accounting firm will be the right fit for your company. Prepare some questions to bring with you so that you know what to ask. Some of the types of questions you should consider include asking about their services, their fees and fee structures, any additional fees they charge for specific services, their communication methods, and the types of clients they typically do business with.
You should also ask about the accounting programs they use, their credentials, and their experience with businesses in your industry. You should ask more questions than you might think are necessary because doing so can help you identify red flags. For example, if an accountant overpromises, doesn’t have credentials, or seems to embellish their accomplishments, you might want to steer clear. Make sure to interview several accountants so that you can compare the pros and cons of each before you decide.
Once you have interviewed potential accountants, you will need to make a decision about which one to hire. In addition to weighing the pros and cons of each one, make sure to consider whether you are compatible with the accountant you are considering. You will need to work closely with your accountant, so picking one you trust and believe you can do business with is important. After you decide on a firm, contact the accountant to get started.
Contact TMD Accounting
If you are searching for an accountant for your small business, it is important to take the necessary steps to research and interview several potential firms to ensure you find one that meets your business’s accounting needs. TMD Accounting has provided small business accounting services to many different businesses throughout New Jersey for 40 years and has extensive experience helping companies in a variety of different industries. To learn more about the services we can provide, contact us today to schedule a consultation by calling 1-856-228-2205.