When you run a business, there are a lot of different things that you have to keep track of. One of the most important things is your finances. This is why it is so important to choose an accountant that you can trust.
Most business owners make mistakes in choosing an accountant. Below are common mistakes you need to avoid.
1. Choosing An Accountant Based Solely On Price:
One of the most common mistakes businesses make when choosing an accountant is basing their decision solely on price. While it’s important to save money where you can, choosing the cheapest option may not always be the best idea. When it comes to your business finances, it’s important to choose an accountant who will provide you with quality service and advice – even if it costs a bit more.
2. Not Doing Your Research:
Another mistake businesses make when choosing an accountant is failing to do their research. With so many accounting firms and CPAs to choose from, you must take the time to learn about each one before making a decision. This means reading online reviews, checking out their website, and talking to other business owners who have used their services.
3. Failing To Interview Multiple Candidates:
One of the best ways to find the right accountant for your business is to interview multiple candidates. This gives you a chance to ask questions about their experience, services, and fees. It also allows you to get a feel for their personality and see if they would be a good fit for your company.
4. Not Considering Specialties Or Services Offered:
When choosing an accountant, it’s also important to consider any specialties or services they offer. For example, if you have a complex financial situation, you may need an accountant who specializes in tax law. Or, if you’re looking for someone to help you with financial planning, you’ll want to find an accountant who offers those services.
5. Hiring Someone Without A Cpa Designation:
While there are many qualified accountants out there, it’s important to make sure you hire someone who has a CPA designation. This designation is a sign that the accountant has met certain educational and experience requirements and is committed to ethical standards.
6. Not Checking References:
If you’re considering hiring an accountant, be sure to check their references. This will allow you to learn more about their work style and abilities. It also allows you to get a sense of how they interact with clients and handle difficult situations.
7. Failing To Communicate Expectations:
Before hiring an accountant, you must sit down and discuss your expectations for the relationship. This includes things like how often you need financial statements or what type of advice you’re looking for. By communicating your expectations upfront, you can help ensure that both you and the accountant are on the same page.
8. Not Having A Written Agreement:
Another mistake businesses make when choosing an accountant is failing to have a written agreement in place. This agreement should outline the services to be provided, the fees charged, and any other terms of the arrangement. Having a written agreement helps to protect both you and the accountant in case of any misunderstandings.
9. Ignoring Red Flags During The Relationship:
Even if you’ve done your research and chosen a qualified accountant, there may be times when red flags appear during the relationship. If you notice things like missed deadlines or unprofessional behaviour, it’s important to address these issues right away. Ignoring red flags can lead to bigger problems down the road.
10. Firing Your Accountant Without Cause:
If you decide to end your relationship with an accountant, it’s important to do so for the right reasons. Firing your accountant without cause can damage their reputation and make it difficult for them to find work in the future. If you do need to let them go, be sure to do so professionally and respectfully.
Choosing an accountant is a big decision for any business. By taking the time to do your research and avoid these common mistakes, you can help ensure that you find the right fit for your company.
Check out accountant Glen Waverley.