04/ 15/ 2002
Whether an accountant will be keeping your books on a daily basis, working with your attorney, or periodically preparing the formal financial statements, choosing the right person (or firm) is an important decision for a new business owner. In today's Workshop, Edith Helmich gives some advice for hiring your firm's accountant.
Shop around for accountant just as you would for any other service provider. Solicit recommendations from the business community and interview several candidates. Allow sufficient time for a full discussion of your business needs and expectations.
Ask yourself the following questions after the meeting:
- Does this accountant specialize in businesses like mine?
- Does this accountant adequately understand my business and its unique problems?
- Does this accountant have a college background and professional status as a Certified Public Accountant (CPA) or Accounting Practitioner (AP)?
- Is this accountant qualified to prepare income tax returns as well as keep the books?
- Has this accountant received positive recommendations from my peers in the business community?
- Did this accountant explain the fee structure so that I completely understand how much the total services I need will cost?
- How do I feel about using this person as a business advisor?
- Did this accountant seem genuinely interested in acquiring my business as a new client?
Selecting an accountant is an important decision and should include the goal of a long-term association. Feeling comfortable with the person who will be privy to your financial records is second only to feeling confident that the person is well qualified to do the job. While initial cost may be a consideration, the on-going assurance that your financial records will sustain audits and examination should be the determining factor. A well designed accounting system is the base for many important business decisions and will provide information for growth and profitability as well as tax purposes.
The ideal person to maintain your business accounts may be a composite --secretary, accountant and attorney, for example. When this is true, frequent communication and full cooperation between or among the group is absolutely vital. Determining the responsibilities and expectations of each individual at the onset will facilitate a smooth coordinated system.
Do not wait for an upcoming tax deadline -- or crisis -- to begin your search and to make your decision about an accountant. Allow sufficient time to consider all the implications for your business.
workshop.accounting.tue
10.03.00
