Finding a Great Accountant For Your Small Business
If
you're not a bean-counter by nature, then handling the
accounting tasks for your small business is probably a giant
headache. I'm not a bean-counter either, and my impulse is to
find a number-cruncher, and throw all my paperwork to that
person as fast as possible.
Not a good idea.
Did you
know that the U.S. Tax Code contains over 18,000 pages? And the
government keeps adding more pages, addendums, and memorandums
to that code every year. Yikes! What does this mean to you as a
small business owner?
You need a fabulous accountant.
Actually, you need more than a fabulous accountant. You need an
accountant who specializes in your area of small business. If
you run a manufacturing operation, you need a specialist who
understands how to maximize the tax deductions for
manufacturers. If your small business is farming or livestock,
you need someone who knows all about IRS Publication 225. I have
a couple of businesses, MLM and consulting, so I need an
accountant who has the low-down on how to maximize my home-based
tax deductions.
Finding a Great Small Business Accountant
To find
the perfect accountant for your business, don't flip through the
yellow pages. You'll just drown in the massive listings there.
Instead, follow these three simple steps.
Step
1: Get Referrals
Dig
through your network of business acquaintances and ask for
referrals from people whom know you well, and who are familiar
with your business. You might check with your attorney, your
banker, your real estate agent, and your insurance agent. You
can also get recommendations from people who own small
businesses similar to yours.
Step
2: Conduct Interviews
Remember, your accountant can literally hold your financial
future in his or her hands. Don't be tempted to hand over your
bank records to the first recommended accountant. Do your
homework first. Be sure the accountant specializes in small
business, and has a thorough knowledge of your industry. In
addition, find out whether the accountant is more of a
paper-pusher (filling out the right forms and sending them in on
time) or more of a tax advisor. You'll want to choose an
accountant who matches you goals. If you are willing to do quite
a bit of financial research yourself, you won't need a tax
advisor. If you want to focus more on other parts of your
business, then you'll need an accountant who can more actively
advise you.
Step
3: Negotiate an Agreement
Most
accountants work on an hourly basis when handling normal tax
questions or filing simple forms. When it comes to filing
federal tax returns, some accountants work hourly while others
charge by the page. Find out how your chosen accountant charges
for his or her time, and get the deal in writing before
proceeding forward. Most accountants, being excellent
administrators, will have an agreement already drawn up. If you
agree with the terms, all you have to do is sign. If you don't
agree with all the terms, try to negotiate a modified contract,
or pick a different accountant. One final point: find out what
the accountant charges should you need to defend your tax return
to the IRS. Some accountants charge extra fees while others
include this kind of work in your tax preparation fees.
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