Accountants can reduce the administrative burdens of running a small business. It also allows business owners to have more time to focus on tasks they love doing to manage a business. The accounting software has also made it possible for businesses to manage accounting tasks without in-house accountants. However, small business owners often have to rely on an accountant for a small business to manage accounting tasks and understand their financials. Moreover, there are several reasons for small business owners to outsource accounting services from accounting firms, such as GTA Accounting. One obvious reason for small business owners to hire an accountant is to overcome the stress of managing accounting tasks.
What Do Small Business Accountants Do?
Small business accountants can manage a wide range of accounting tasks for small business owners. They can manage the books of accounts for small businesses, analyze financial results, and help them file taxes. Moreover, they can offer small business owners the best advice to manage and grow their business over time.
However, small business accountants are well-known for conducting day-to-day bookkeeping activities for their clients. They keep track of income and expenses for small businesses. Further, they keep an eye on their cash flows, pay invoices, and ensure their clients receive payments from customers on time. Some small business accountants also manage payroll for small to medium-sized businesses.
At the end of the accounting period, small business accountants create financial statements, balance sheets, income statements, and cash flow statements. It helps business owners know the real picture of their business. Moreover, experienced accountants use the financial data of a business to prepare business taxes and file their returns. In addition, they can pinpoint the business areas for their clients that need improvement. Thus, small business accountants manage a lot for small businesses to help them accomplish their business goals.
Moreover, small business owners should ask 4 questions themselves before they hire a small business accountant to meet their business needs.
4 Questions to Ask Prior to Hiring a Small Business Accountant
Here are the questions that small business owners need to ask themselves before they hire a small business accountant:
Q1. What Type of Accounting Services Are You Looking for?
A1. You should know your priority for the accounting tasks you want the accountant to do for you. Searching for an accountant for a small business will become easier for you when you have the job description for your accountant. Here is the list of possible tasks you may want an accountant to do for you:
- Day-to-day bookkeeping
- Managing accounts payables and accounts receivables
- Tax preparation
- Payroll
- Drafting a financial statement
- Budgeting
- Financial planning and analysis
You should not only consider the current needs of your company but also future needs while hiring an accountant. You should not search for a bookkeeper when you think you would assign payroll duties to someone else. Hire an accountant who can manage both tasks for you. Besides, outsourcing accounting services from a reputable accounting firm is your best bet in this regard.
Q2. Are You Looking for an Accounting Firm or an In-House Accountant?
A2. Small business owners should also know whether they are looking for an in-house accountant or an accounting firm. Nevertheless, hiring in-house accountants proves more costly to businesses. Nevertheless, the advantage of hiring an in-house accountant ensures the dedication of an accountant’s time. On the other hand, outsourcing accounting services from a reputable accounting firm is cost-effective for the business.
Further, it also ensures the effective handling of accounting tasks as a business does not need to train a professional, unlike an in-house accountant. Thus, small business owners should know whether they are seeking in-house accountants or an accounting firm to outsource accounting services to make the right decision and hire the right accountant.
Q3. What Is Your Budget for Hiring an Accountant?
A3. Another thing you need to keep in mind while hiring an accountant is to know your budget. You should consider how much you would like to spend on the accounting services you need. The budget you have in hand should reflect the accounting services and expertise your business requires. You can get some quotes from accounting firms if you are looking to outsource accounting services from an accounting firm. It will aid you in building the right budget for accounting services to hire a small business accountant.
Q4. How Can the Accounting Software Overcome Your Burden?
A4. You can automate the accounting tasks with the aid of accounting software. A few of the reputable accounting software for small businesses include QuickBooks Online and Xero. You can also count on an accountant from a reputable accounting firm to manage accounting tasks for you via the accounting software you choose for your business.
Conclusion
An accountant for a small business can reduce the administrative burdens for small business owners and help them focus on important business tasks. Further, small business owners should ask the following four questions themselves before hiring a small business accountant:
Q1. What Type of Accounting Services Are You Looking for?
Q2. Are You Looking for an Accounting Firm or an In-House Accountant?
Q3. What Is Your Budget for Hiring an Accountant?
Q4. How Can the Accounting Software Overcome Your Burden?
