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Money management is super personal. Entrust your accounting to a professional who is knowledgeable, experienced, and whose personality is a good fit with yours. An accountant is a person whose profession is inspecting and auditing accounts; think data analysis. A certified public accountant (CPA) is licensed by a state examining board as having fulfilled the requirements of state law; these professionals are required to uphold a code of ethics and conduct. They are also required to meet state specific educational requirements. If you choose to work with an accountant that is not a CPA ask questions to learn how they remain current on rules and regulations.
CPAs are generalists. However, many choose to work with a specific type of client, within a specific industry, business size, or stage of growth. C Corporations have a different tax structure than Partnerships. Non-profit organizations have different reporting requirements from sole proprietors. Consult with a lawyer to choose the best legal structure for your business and select an accountant that specializes in that type of structure. Ask questions to find a professional that is familiar with the opportunities and challenges that your business is currently facing. There are not separate rules for recording financial transactions as a start up versus a business that has been around for 30 years; architects follow the same financial reporting rules as photographers. However, the decision making may be different depending on your industry or time in business, and I encourage you to choose a professional that understands your financial position. Clearly state your expectations and the desired outcome for your partnership with an accounting professional. Are you looking for tax preparation only? Do you want to drop off a box of receipts and move on to their next task allowing the accountant to handle recording and reporting all the transactions? Would you prefer to sit and share the challenges that you have in business and work together to problem solve and make better financial decisions? Have conversations before you engage a professional to be sure that their personality and communication style will work well with yours and that they can meet your expectations. Be sure to check out the video from my Instagram LIVE post earlier this week!
9 Comments
7/25/2019 02:28:36 pm
I am thinking about hiring an accountant for my small business and I don't know where to start so I am glad that I found this article. It makes sense that you talk about having conversations with potential accountants before hiring them. This way I can make sure that their personality and communication style match with the needs for my business. 9/9/2019 02:51:56 pm
To be completely honest, I'm not really good at managing my money. I think that an accountant would be able to help me sort out my finances so I can finally learn to grow my money. Thanks for clarifying that I can hire CPAs since they're generalists that are good at many financing specialities, so I might consider that. 9/18/2019 09:51:42 am
I agree that you want a personality that fits yours. That way you'll be able to work with them better. It's easier to work with somebody you like than dislike. 10/11/2019 03:48:19 pm
You made a great point when you explained exactly what an accountant does and what they have to do to be one. My husband and I have decided we need help with our taxes and need to hire a professional. We will be sure to use these tips when choosing our professional. 11/12/2019 06:18:38 am
I liked that you mentioned you need to be sure about your expectations and the desired outcome before hiring an accountant. My husband owns a small business, and we are looking for advice to help him hire an accountant. I will recommend him to be clear about what he needs to choose the right accountant for his business. 11/25/2019 10:03:35 am
I like that you mentioned how you should convey what you expect from your accountant before hiring them. My uncle would like to open a cleaning service but worries that the costs of equipment and supplies will outweigh his profit. Maybe he should find an accountant that can help him decide how to approach his business finances. 12/10/2019 08:51:43 am
It's good to know that CPAs are certified have reached educational requirements, but they may still have particular experience with different sorts of clients. My friend and I started a business together at the beginning of this year, and we're starting to think of how we want to handle taxes. Maybe we'd benefit from finding an accountant who specializes in our sort of situation. 12/11/2019 06:16:35 pm
I like how you mentioned that money can be personal and that you should hire an accountant that matches your personality. My daughter is thinking about hiring someone who specifically does accounting for artists because she has a lot of paintings to sell and manage. I'll be sure to pass this information along to her so she knows the benefits of choosing an accountant with an art or painting background. 1/17/2020 09:06:55 am
I agree that you should ask questions to learn how they stay up to date so you can be sure that they'll be right for the job. My wife and I are really bad at taxes and finances in general. We both think it would be better if we just hired an accountant. Your comment will be posted after it is approved.
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