Picking the right accountant is a huge driver of success for any business. Whether you are investing in a startup, leading a growth company, or running a long-established business, a good accountant will ensure that your finances are monitored, and your business is compliant with laws and regulations. Beyond just filing taxes with the IRS and state, a good accountant should be a business partner who helps you understand your numbers, manage costs, help you plan for growth, and avoid costly mistakes. Here is the way you can get the right fit for your business, while also considering the modern trends such as cloud-based accounting, and the hiring of global accountants.
Identify Your Business Needs
Every business is different, as are their accounting needs. Some businesses may only want basic bookkeeping, which involves organizing daily transactions and reconciling bank statements. Others may need guidance in payroll processing, inventory costing, preparing monthly financial reports, etc.. Some businesses require assistance with tax planning and compliance, while others simply need strategic advice or support in fundraising. The most affordable option is to know the tasks you expect your accountant to oversee.
Understand Types of Accountants
There are many types of accountants in the accounting profession. To ensure that you find the right fit for your business, you should be aware of the most common types: Certified Public Accountants (CPAs) are one of the most recognized and best accepted accountant classifications, they are rigorously licensed and can prepare tax returns, conduct audits, and represent the client before the IRS. Enrolled Agents (EAs) are licensed at the federal level (not state level); they specialize in tax matters. Bookkeepers may not be certified but can be extremely useful for you in your routine financial operations and may have varying levels of training for advanced types of financial operations. The other profession that some companies will turn to with more complex operational issues is tax attorneys and this is usually done to address legal or regulatory issues and for tax planning / filings.
Additionally, in a global economy such as the one Realtaxpk, a company has the option of using qualified foreign accountants. Accountants from different districts such as Pakistan, or the Philippines would have an ACCA (UK) + ACA, Chartered Accountant title and would provide excellent service for a very low cost. They can complete your daily bookkeeping, financial statements, and assist you with consolidations and unique calculations. They usually have lower hourly rates than CPAs or EAs and may be valuable to new companies or small businesses where they are trying to maximize their budget.
The Shift to Cloud-Based Accounting
In the past few years, the tax and accounting space have transitioned from desktop software to extremely robust cloud accounting solutions. With new tools like QuickBooks Online, Xero and Wave, business owners and accountants have new methods to work collaboratively with small business owners across the world. Cloud accounting means your financial numbers are alive, you have access to your data anywhere and cloud accounting is safer than desktop accounting. The advancement in cloud accounting allows for the ease of collaborating with virtual bookkeepers, as collaborating with a local bookkeeper.
Finding Accountants and Bookkeepers Online
Finding competent accountants and remote bookkeeping service is more accessible than ever with the use of applications such as Upwork or Fiverr. Professional freelance applications such as these provide thousands of professional accountants and bookkeepers that can perform work on a freelance or contract basis, including accountants with quality accounting education in their home countries like Pakistan or the Philippines. When you use Upwork and Fiverr, you can view profiles and ratings and client reviews to help find professionals that match your needs and pay rates.
Confirm Their Credentials and Experience
The first thing to do when you have decided on the type of professional to look for is confirm their credentials. As a starting point for U.S. CPAs and EAs, you will want to check their licensing databases and ask for their Preparer Tax Identification Number (PTIN); for international professionals, you may wish to ask for professional certificates, degrees, and memberships in established accounting organizations. You may also want to ask about their practical experience relevant to your industry, and familiarity with U.S. regulations if your business is based in the U.S. or serves U.S. clients.
Ask for Referrals and Interview Candidates
Referrals from people we value will always be an effective way to find someone trustworthy in accounting. Ask other business owners, financial advisors and even your lawyer if they know someone. If you are considering freelancers from Upwork or Fiverr check the reviews, ask for samples of previous deliverables, and meet with video interviews to talk about your needs. During meetings, ask each candidate what deliverables they provide, how quickly they respond, and how they stay current on the latest trends in accounting standards and software. These discussions will help you assess if they are initiative-taking and able to provide ongoing value for your business.
Identify a Proper Size or Freelance Professional
Accounting services are available from solo practitioners, small firms, large firms, or even freelancers based overseas. A solo accountant or freelance bookkeeper may provide more personal attention and a lower rate, but they may not be available at peak times. Small and mid-size firms and agencies will provide most of what a larger firm can provide (and often at lower rates), without the unnecessary costs. Larger, reputable firms may be able to provide an only source for all accounting needs including audits, tax planning and help with writing consulting reports. Whatever option you choose, put your needs up against the price and find the best fit.
Clarify Their Fees and Billing Practices
Pricing is all over the place. Some professionals charge hourly; some have a flat fee for services like tax preparation. Many of the virtual accountants and bookkeepers on Upwork and Fiverr are also charged hourly or by project (which might also be a little cheaper). New Startups may also enjoy the flexibility. Regardless, always ask for a written proposal, including fees, payment schedules and overall service. This will help to limit any surprises.
Take the Time to Assess Compatibility and Communication Style
Utilizing an accountant or a bookkeeper is like a partnership, not an obligation. You will be giving access to sensitive information and relying on their word for some of the most important, if not the most important decisions that you could make. You should be clear on how and when they communicate, how quickly they respond to emails and whether they understand your industry and objectives. Also ask them how they might deal with time zone differences if they are working remotely from another country. A great accountant might feel just like an extension of your team.
Examine Their References and Online Presence
Before dealing with the deal, ask for client references (wherever possible to use similar businesses). Go through their Upwork, Fiverr, LinkedIn and/or own website profiles for testimonials and client references or simply reviews. These reviews and ratings can provide lots of clues to how dependable they might be if they are knowledgeable and how responsive they or their team members can be.
Final Thoughts
Selecting the right accountant is about much more than the numbers. You want someone who you feel comfortable with and who you can trust to assist you through the challenges of your business so it grows, someone who can embrace and utilize modern technology and someone who can work in a relaxed format. Whether you hire a local CPA, an accountant overseas or a freelance bookkeeper, be sure the professional you are speaking to has the knowledge and expertise along with the ability to communicate in your style so you can manage to thrive in today’s cloud-based, global or quickening market.