At a point in the growth of every business, there will be the need for an accountant to help you manage your account. Some business will require that you employ an accountant from the outset. The truth is that, the role a professional accountant play in a business or company cannot be over emphasized. This is because it is one role that has to be taken seriously.
Accountants help small businesses to keep and balance their books, they help in sorting out financial transactions with clients, third parties, vendors and the bank, they help in calculating interest and also accountants help young businesses prepare financial reports.
Accountants are also in – charge of financial data management, auditing and also they ensure compliance. Depending on the nature of the business you run, an accountant can also double as an administrative officer, manage the company’s payroll, tax and also prepare financial reports for the company.
So when you are making plans to start your own company, then you should make plans to choose the right accountant for your business. The truth is that beyond the roles you want the accountant you want to employ to play in your organization, your budget and the qualification of the accountant will determine if you will be able to employ him or her. Now let us quickly go through the 10 factors to consider when choosing an accountant for your business;
10 Factors to Consider When Choosing an Accountant for Your Company
1. The Size of Your Business
The size of your business is one of the factors to consider before choosing an accountant for your business. The truth is that, if your business is small, you would not need to keep an account in your payroll. All you need to do is to hire an accountant that will operate on a part – time basis not on a full time level. However, if your business is big, then you don’t have any option other than to hire a competent account to help you handle all your accounting concerns.
2. Your Financial Capacity and Budget
The financial capacity of your business is yet another important factor that you need to consider when choosing an accountant for your business. There are different levels of accountants; some are chattered and some aren’t chattered. If you deal in high volume of cash, it will be to your best interest to hire a chattered account to help you keep your book, but you would have to pay more. In case you don’t have enough money to pay a chattered accountant, you can still make do with an accounting graduate.
3. The Nature of Your Business
The nature of your business is another factor to consider when choosing an accountant for your business. For instance, if you operate a rental service business, you would not need a well experienced accountant to help you keep your book. But if your business involves the flow of heavy cash and also if you have business partners, then you should endeavor to hire a well experienced and qualified accountant to help you keep you book and prepare financial reports.
4. The Qualification of the Accountant
The qualification of the accountant is yet another factor you need to consider when hiring an accountant for your business. There are various professional exams for practicing accountants. If you operate a large company with a large staff strength and huge annual turnover, then you must endeavor to hire a certified / chatter accountant to help you keep your book and also to prepare your financial report.
5. The Experience of the Accountant
If you run a manufacturing company, you should consider hiring an accountant that is experienced in the manufacturing industry if you want him / her to be very effective. The experience of the accountant is one of the factors that should influence your choice of accountant to recruit for your business.
6. The Added Advantage the Accountant Will Bring to Your Business
Beyond recruiting an accountant to perform accounting role in your company, you should also consider the added advantage the accountant will bring to your business. The truth is that it will pay you as a business owner to recruit an accountant that will perform other administrative roles in your business.
7. The Kind of Clients, Vendors or Third Party That You Deal With
If your business requires that you deal with professionals and big time clients and vendors, then you must endeavor to recruit a qualified and well experienced accountant to work or you. The kind of clients, vendors and third parties you deal with is factor you need to consider when choosing an accountant for your business.
8. Willingness of the Accountant to Join in Growing Your Business
If your business is still small and growing, the willingness of the accountant to join in growing your business should be one of the factors to consider. So ensure that you look out for this quality during interview and screening session.
9. The Accountants Computer Skills
Another very important factor that you must consider before choosing an accountant for your business is the computer skills of the accountant. The truth is that no accountant may be effective if he or she is not good with computers.
As a matter of fact, you must be good with computers to be able to make use of accounting software. It is safer, faster and convenient to make use of accounting software to run the account of your company. It makes it easier to operate your payroll, to prepare financial data and report. It makes it easier to audit your company’s account.
10. The Professional Body the Accountant Belongs to
Another factor that you need to consider before choosing an accountant for your business is to know if the accountant belongs to any professional body. The truth is that it is safer to hire accounts that are members of the relevant umbrella body for accountants in your country – they are accountable.
There you have it, the 10 factors to consider before choosing an accountant for your business.
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