For any business owner, it can be overwhelming to keep up with the ever-changing tax laws. Whether you’re a sole proprietor or you own a mid-sized business, taking care of everything from cash flow management to minimizing tax liability can be a daunting task. Unless you’re a financial expert, understanding every aspect of tax laws can leave you scratching your head. So, instead of handling bookkeeping all by yourself, it makes sense to hire an accounting firm to manage your books and taxes. For almost every business, it’s best to find an accounting firm that offers personal and corporate tax planning, income tax preparation, business advisory and bookkeeping services.
Accounting professionals are qualified and make sure to stay updated about new tax laws. In addition to bookkeeping, accountants also offer financial advice and help businesses develop budgets and set financial goals. Accounting professionals offer invaluable services; however, not all accounting firms are equal. You may find some incompetent accounting professionals who offer services at a low cost. But when it comes to your finances, it becomes crucial to find a reliable and qualified accountant. With that in mind, here are some factors you need to consider when hiring an accountant firm for your business.
Qualification & Certification
Make sure the accountant you’re hiring has undertaken a finance-related bachelor’s degree and preferably some postgraduate degree also. If you need services more than simply filing income tax then find an accounting firm that employs Certified Practicing Accountants (CPAs). If an accountant is a CPA it means that the person has passed an exam and meets certain state-specific criteria. This certification also ensures that the professional has up-to-date knowledge of tax laws because CPAs are required to periodically renew their certification. The best firms also have a membership in organizations like the Institute of Chartered Accountants. Only qualified accountants can become a member of these bodies.
Accounting Services Offered
Most businesses need multiple services such as tax filing, auditing/reporting, cash flow analysis, and more. Depending on the services you need, make sure the accounting firm you choose is capable of handling all your financial needs. A full-service accounting firm offers a wide range of services to deal with all your financial needs. In addition to this, make sure the firm is familiar with your industry. It’s important to hire an accountant who is familiar with your industry and the unique issues faced by your business to provide you with the right advice. This means that an accountant specializing in retail tax is not the right choice for agricultural clients.
Reputation and Experience
Dealing with business finances and taxes can be quite complex. It can be risky to trust any random individual who claims to offer accounting services. Before hiring an accounting firm, make sure to do some research to check the firm’s credibility and work experience. You should take a look at online reviews of the firm, as well as their check social media accounts. You can also get references and speak to their clients. A reliable accounting firm will also post clients’ testimonials on their official website.