Every dollar coming in and out of a transaction counts in business, regardless of the amount. It becomes a basis for profitability, which is important when making relevant business decisions. When a company begins to expand, the number of transactions increases and the demand for accounting work grows.
Keeping good financial health is a crucial aspect of running a business. While some can get by with DIY bookkeeping and accounting, it becomes difficult to handle when other aspects of your business need utmost attention. Getting an accounting professional onboard can help you monitor and analyze financial data in more extensive, organized, and worry-free ways.
This article covers the importance of working with professional accountants and how your company can hire the right person.
What is An Accounting Professional, and Why Do You Need to Hire One?
An accountant collects, interprets, and analyzes a company's financial data. From organizing previous documents to handling financial growth transitions, accountants are the people you can count on to manage your finances properly. They work for an individual or large organization with a wide range of responsibilities. Moreover, they help ensure the continuous growth of your business.
An accountant will help you save time and avoid mistakes that create a huge impact on the overall financial health of your business. Managing cash flow, stocks, pricing, payroll, and other financial transactions can be difficult to track. So lift some weight off your shoulders with outsourcing and let an accountant handle this work and collaborate in nurturing your business.
Pointers to Review When Hiring a Professional for Accounting
Begin with finding and hiring a reliable accounting professional. There are many promising accountants in the industry, but you only need one team that fits your needs. Here are significant pointers you should consider when looking for a trusted accountant.
Let's start with the basic credentials that make an accountant a true professional— someone who’s fit to work and whom clients can trust.
Professional Accounting Certification
A Certified Public Accountant (CPA) license is one of the most important qualifications to look for when hiring an accountant. Although non-CPAs can work in the accounting field, a CPA offers more expertise in the various aspects of an organization's finances. Additionally, CPAs have gone through meticulous examinations and passed necessary training requirements, making them more reliable.
Range and Level of Expertise
Depending on your needs, there are various accountants with different specializations available. For example, you can choose from auditors, forensic accountants, government accountants, management accountants, cost accountants, and staff accountants. Selecting any of these is fine as long as they are capable of doing the job well. However, it is still best to hire a CPA professional that can work on more than one aspect.
Traits That Seal the Deal
In hiring a professional, certification and other official documents are not enough. In addition to paperwork, you need an accountant that you can easily communicate with, help you collaborate effectively, and who has the same commitment to your business.
Presents Data in Layman’s Terms
One of the main reasons you hire an accountant is you want someone to help you understand the complexities of financial management. If you're not specifically trained for the accounting profession, it won't be easy to comprehend data. As a result, it causes discrepancies in your financial statement or report. Therefore, find an accountant who can present data in terms that you can understand. In addition, you need to have a clear grasp of the issues present and solutions required when coming up with business decisions.
An Industry-Specific Expert
Seek a certified professional accountant with a background suitable for your business. They might be skilled in many aspects of accounting, but it's useless if they don't know how to apply it in your industry. Since companies operate differently, cost procedures (especially tax preparation) differ, and your accountant needs to understand them to get the job done. Additionally, it would be great if your candidate has the knowledge and experience working within your industry. This eliminates the time a new hire might need to adjust.
A Compatible Character
When hiring an accountant, you must ensure that they have an approach compatible with yours. To figure this out, give them examples of problem-solving situations during the interview and listen to how they handle them. However, this doesn't mean the "opposites attract" principle doesn't work anymore— an accountant with a different approach can still help you. Just ensure they aren't forceful and uncomfortable to work with.
Technology has been bringing huge transformations in various industries. When looking for an accountant, ensure that they are informed about the latest and best accounting tools in the market. Ask them about their knowledge and perspective towards embracing new technologies. Moreover, ask why they'd prefer a particular tool or software. From there, you can decide whether it can be useful in achieving your business goals.
Knows How to Avoid the Bad Side
Get an accountant who stays on the safe and righteous side of things. Note that if they break any of the financial laws and regulations, you are the one responsible for them. For example, it's a big no for an accountant who sends false information to the IRS or has no identification number for tax preparation. Consider these scenarios when searching for your ideal accountant.
A Good Background From References
Last but not least, it is best to consult trusted references to find out more about your accounting candidate. Ask clients within your industry or network about their experience with the accountant. Get some feedback on the services, fees, level of expertise, and character. From this, you can gather more important information about your candidate and eventually make a wise hiring decision.
Hiring an accountant is as significant as your company's financial health. Keep in mind that you are turning over an extremely important aspect of your business to someone else. Therefore, ensure that the assigned person or team acquires all necessary qualities to perform accounting duties successfully.
If you're looking for trusted professionals in bookkeeping and accounting services, Unloop is the perfect business partner for you! We accommodate businesses all over the US, Canada, and also serve remotely. In completing your books, we offer a subscription plan that includes efficient and the latest accounting software: Quickbooks, Hubdocs, and A2X. Should you have more questions, you may contact us for a consultation.