Being a business owner is hard work, so there’s no shame in getting an accountant to help you manage your finances. But to find a good accountant, you need to ask them the right questions to let you know what expertise they can bring to your business.
What should I expect from My accountant?
Not all accountants may have the same approach to handling your business finances, but a good one will know how to keep your financial reports organized and accurate.
So aside from being proactive during tax season, it would also be great if your accountant can give you ongoing advice on how to analyze and manage your finances better.
But the most valuable trait you should expect from your account is the ability to communicate well. Since you’ll need to collaborate on keeping your business afloat, it would be great if you’re kept up to date on where your finances stand.
Since not all business owners may have the mastery of understanding accounting jargon, a good accountant can help you comprehend the system.
Questions to Ask your CPA
Finding the right accountant can be a critical decision for your business. So to help you decide on the right one, here are 7 important questions to ask your CPA when hiring:
Do you have any Accounting Experience in this Industry?
Having certifications and skills can make an accountant a valuable member of your team, but a CPA that has a solid experience in your industry can help improve your business.
Especially when you’re still starting out, since having a knowledgeable accountant can guide you through the ins and outs of which business and financial plans work best in your industry.
What Financial Statements do I need to Keep?
As a business owner, it’s important to keep track of your business’s financial documents to make filing taxes, analyzing data, and monitoring funds easier for you. So a good accountant would know that balance sheets, tax returns, profit & loss statements, and cash flow statements are a few of the most critical documents you’ll need to keep.
So if you have any questions or clarifications regarding these reports, your accountant should also be able to interpret and explain the contents to you.
How do you Keep Financial Records Accurate?
Keeping financial records accurate is a pivotal part of an accountant’s job. So having a CPA that has a keen eye for detail can save your business from making expensive financial mistakes in the long run.
Having an accountant that knows how to operate an accounting system is also a plus as this will make your operations easier. Having your documents digitized will save you a lot of time and effort from making your reports manually.
How can my Business Manage its Cash flow Better?
One key to your business’s success is its ability to manage its cash flow. So your accountant should be able to pinpoint changes you need to apply if you want your business to improve.
Since your cash flow pays off your business’s expenses, debts, and employee salaries, having an effective financial strategy can prevent your business from shutting down. So make sure to ask your accountant for advice on how to keep your business profitable.
What Source of Finance is best for Business Expansion?
Expanding your business may require you to spend money. So if the budget is tight but extending your business is a worthy investment, you might benefit from getting financial aid.
So make sure to ask your accountant which source of finance is best for your company Loans, investors, or crowdfunding are all great sources of funds, but the option you choose should be reasonable for your business.
How do I Prepare for the Tax Season?
A requirement for keeping a business compliant is its ability to pay its taxes on time. So to save you from any snags and surprises during tax season, make sure to ask your accountant what documents and reports you need to prepare ahead of time.
It won’t also hurt to ask your accountant if there are any upcoming tax law changes that may affect your business so you’ll have time to prepare.
Will my Business Finances be Managed by the Same Accountant?
When working with an accounting firm like Lear & Pannepacker you can rest assured you’ll get an experienced CPA to handle your account.
Since trust is an important aspect of creating a long-lasting client relationship, a good firm would know that having one accountant work on your finances will be beneficial in the long run. This will allow your CPA to keep an eye on minute details that will keep your statements accurate.
Knowing your business’s financial history will also be more effective for creating future business strategies that will help you obtain your goals.
So if you’re interested in partnering with a dependable accountant for your business, contact our team now to know more about our services.
Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.