Tips For Choose Accountant For Your Small Business

Choosing the right accountant for your small business can mean the difference between success and failure. After all, it’s your financial numbers that make or break your business.

Unfortunately, once you’ve selected an accountant, it’s a pain to switch. Your accountant gains detailed knowledge of you, your business and your data —it makes it very tough to transition to a new accountant. The end result is that many businesses that work with mediocre accountants don’t make the change to a better accountant simply because the switching costs are too high.
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Given the inertia that settles in after you’ve selected an accountant, it’s important to make a good choice the first go-around. Makes sense, right?

Surprisingly, most business owners don't thoroughly consider their needs when selecting an accountant. That’s because many of us who don’t have a strong accounting background view all accountants as being equal.

But the reality is that all small business accountants are not created equal.

This article explains how accountants can assist your business and provides useful questions you should use to choose an accountant that truly can help your business grow, not somebody who just crunches the numbers.

Questions to Ask Your Prospective Accountant

The bottomline is that you should expect today’s accountant to be much more than a bookkeeper. Most do add considerable value. The trick is to separate the wheat from the chaff.

So, with your raised expectations, how do you choose the right accountant for your small business? Like any relationship, it boils down to a compatibility of interests, experience and outlooks. Seek recommendations from your peers and ask prospective accountants the following questions:

Do you have your CPA?
Business owners are often confused as to the certified public accountant (CPA) designation. A CPA has a surpassed accepted financial education levels, passed state-administered tests to prove competency and periodic re-certification exams. Certain situations, such as audits and many loan applications, require CPA involvement. Not surprisingly, CPAs can charge higher fees than a non-CPAs. But there are a great many non-CPAs who excel at small business accounting and financial and technology consulting. Again, getting to know them and your needs is the necessary first step.

What kind of creative business advice will you offer me?
A good accountant can deftly handle data and numbers but should also be able to demonstrate quick and creative business acumen. Ask the candidate to offer three quick ideas on how your firm might be able to save money right now. Ask them for three examples in which they offered useful business advice to other clients that went beyond just tracking the numbers. While “creative accounting” is usually a negative, having a creative business mind can be a huge asset towards helping your company to grow.

Do you consider yourself to be tech-savvy?
Small business accounting software has made powerful accounting tools available to everyone. But these accounting packages, most notably MYOB and QuickBooks, are only as useful as the person who installs them and runs the applications. Even if you are not a “tecchie,” do your homework to be able to determine whether the candidate understands the role computer technology plays in turning business information into business intelligence. For example, ask them how they will integrate your computer files with the technology in their office. What role will the Internet play in keeping in touch and interchanging financial information?

Who are your other clients?
Imagine this scenario. You hire an accountant based on the assumption that he understands the basics of your business. Then, you find out that he’s never had a client like you before. Instead, he’s only prepared tax forms for wealthy individuals that don’t own businesses. Avoid that possible disaster by asking who the accountant works with. If they are businesses that are similar to yours, that’s a good sign. In asking about their clients, you will also want to understand how busy they are and whether they have the time and resources to support you adequately.

How do you calculate your fees?
Ask the accountant what you can expect fees to be and will he guarantee that you will not exceed certain amounts that you agree upon up front. In a time-based fee structure, make sure to find out the hourly rate, as well as all fees for expense reimbursement. Find out now whether a simple two-minute phone call or a one page fax means an hour of billable time. If that’s the case, run for the door.

Are you active in the local business community?
Who do you know that can help me? Find out whether your prospective accountant can introduce you to people who might be useful to you, including prospective customers, suppliers, bankers, and investors. Since talk is cheap, take it one step further. Ask the accountant for examples of introductions they’ve made in the past for other clients and how those introductions played out.

Why should I use you?
As a final question, it’s always good to let the accountant make the case for why you should engage them. Find out whether your prospective accountant can introduce you to people who might be useful to you, including prospective customers, suppliers, bankers, and investors. Since talk is cheap, take it one step further. Ask the accountant for examples of introductions they’ve made in the past for other clients and how those introductions played out.

Save your Work in Business and Financial Software

Business and accounting tools up until now used to have Spartan, decidedly minimalistic user interfaces. This approach worked in the early days of text-based spreadsheets and black-and-white trading terminals. However, the latest trends in operating system and software design require a better, more usable and more visually appealing user interface. Is your team of designers prepared for the challenge?

Designing clear text messages, wizards and intuitive dialogs and window layout is only one side of a coin. It is still easy to spoil a good user interface with improperly designed, rushed graphics, with alternatives being spending more on graphic design or moving the deadline. There is another, less talked about alternative: using ready-made stock graphics to empower your accounting product or service.

What's so good about stock images? Stock images are a great way to make your product stand out with professional, balanced design and strikingly good looks. Stock graphics are readily available, meaning that you see exactly what you get, and you get it right away without the long wait. Stock icons are sold as matching sets, ensuring color and stylistic integrity of your project. Finally, stock icons are a much less expensive alternative to drawing icons even in-house, let alone outsourcing them to a contractor.

Working specifically on making a usable tool for business-oriented customers, you need stock images designed with that in mind. While there are many generic sets of icons available, there are only a few designed for business developers. Business Toolbar Icons by Perfect Icon (perfecticon.com) are hand-crafted by professional software designers for the purpose of integration with business and accounting software.

Business Toolbar Icons depict many objects, actions and symbols that are widely used in financial tools. Currencies such as Green Dollar and Euro, accounting terms such as Debit and Capital Gain, actions such as Forward, Down, Pick and Transfer, and human-related icons such as Staff, Employee and Administrator are supplied among many other images.

Technically speaking, your purchase gets over 200 icons in all standard sizes, color depths and file formats. Semi-transparent True Color images for Windows XP and Vista operating systems with high resolution displays are complemented with 8-bit, 256-color images. Each picture comes in all resolutions of 16x16, 20x20, 24x24, 32x32, and 48x48 dots, and is supplied in three different states: normal, disabled, and highlighted. All images are available in Windows Icon (ICO), Bitmap (BMP), GIF, and PNG file formats.