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, it makes sense to hire an accounting firm to manage your books and taxes instead of handling bookkeeping yourself. For almost every business, finding an accounting firm that offers personal and corporate tax planning, income tax preparation, business advisory, and bookkeeping services is best.
Accounting professionals are qualified and stay updated about new tax laws. In addition to bookkeeping, accountants offer financial advice and help businesses develop budgets and set financial goals. Accounting professionals provide invaluable services; however, not all accounting firms are equal. You may find some incompetent accounting professionals who offer services cheaply. But when it comes to your finances, finding a reliable and qualified accountant becomes crucial. With that in mind, here are some factors you must consider when hiring an accounting firm for your business.
Qualification & Certification
Ensure the accountant you’re hiring has undertaken a finance-related bachelor’s degree and preferably some postgraduate degree. If you need services more than simply filing income tax, find an accounting firm that employs Certified Practicing Accountants (CPAs). If an accountant is a CPA, 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 must 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, etc. Depending on the services you need, ensure the accounting firm you choose can handle all your financial needs. A full-service accounting firm offers various services for all your financial needs. In addition to this, make sure the firm is familiar with your industry. It’s important to hire an accountant familiar with your industry and the unique issues your business faces 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. Trusting any random individual claiming to offer accounting services can be risky. Before hiring an accounting firm, make sure to do some research to check the firm’s credibility and work experience. You should review the firm’s online reviews and social media accounts. You can also get references and speak to their clients. A reliable accounting firm will post clients’ testimonials on their official website.