An accountant’s profession is to maintain or inspect financial accounts. Unfortunately, they can also be used as a sort of fiscal cleanup crew. All too often, a business will only choose to turn to an accountant when fiscal challenges have simply become too difficult for them to face without expert advice. Whether you are seeking to improve the money management of your business or your financial statements are coming out incorrect or incomplete, the right Certified Public Accountant (CPA) can be a tremendous help. Here’s just how you can determine if an accounting firm or individual accountant has the qualifications and experience necessary to provide you with the highest quality service possible.
Hiring a Firm or an Outside Accountant
A vast majority of entrepreneurs starting their own businesses begin their venture trying to do too many aspects of the business for themselves. Doing your own taxes is simply too complicated for most. Despite such bookkeeping software as QuickBooks and Quicken, there comes a time when an expanding enterprise must pass the torch to a tax professional so they may focus on other functions of their business. Hiring the proper accountant can offer your business more than just tax returns. With an accountant for your small business, you get long term tax planning, business development, personal tax planning and even networking. However, first and foremost, you must determine whether you require the assistance of a firm or an inside accountant.
Choosing When to Hire an Accountant
While a large number of small businesses don’t actually have the volume of fiscal transactions to mandate a full time bookkeeper or accountant on staff, most could benefit greatly from routine financial review, planning and updated accounting. As opposed to leaving all of the company invoices and receipts to hand over to a tax preparer at year’s end, to hire an outside accountant or accounting firm on a consulting basis is an advantageous first step in the growth of any business. Even with the most up-to-date accounting and tax software, businesses typically find that a CPA firm can manage their books just as easily.
Knowing the Difference Between an Outside and Inside (or Staff) Accountant
Though every company is different, accounting firms will usually handle tax return prep, financial statement preparation and problem solving advice/analysis based on hourly rate schedules. On the other hand, an inside accountant will tackle a general ledger/chart of account maintenance, daily transactions, financial statement prep and analysis, cost accounting/variance analysis, treasury and cash management and payroll/fixed asset accounting. Since compensation level requirements may vary, you should always examine guidelines carefully.
Also you can look on any accounting firm website to get know more.