Small businesses and startups often have a hard time selecting between CPA firms. After all, the lack of experience is a factor that cannot be ignored. Given the diverse needs of contemporary businesses, it makes no sense to hire a full-time accountant, when outsourcing is much more affordable and efficient. The accounting process, regardless of the business size and niche, should be as transparent and systematic, as possible. In this post, we will talk about the mistakes that small business owners often make often hiring CPA firms.
1. Focusing on wrong things. Well, all accountants are not CPAs, but all CPAs are accountants. This is an aspect that many entrepreneurs fail to note. They often look for cheaper accounting firms and tax preparation services that are just trying to make money in their own ways. When you talk to a CPA, you need to know their qualifications in detail. Also, some firms are more experienced when it comes to handling matters of small businesses.
2. Not understanding the specific needs. As a manager or entrepreneur, you have to understand the requirements of your company with a more dedicated approach. Some startups just require assistance for filing taxes, while others might need help for managing the records. Depending on these smaller factors, you have to choose a firm that’s ready to offer custom services.
3. Hiring a CPA who isn’t available. No matter what type of business you have, you will need regular assistance from the concerned CPA firm. Don’t hire a company that crops up with a set of services for the last two months of the financial year. Communication is a relevant and essential factor, which must be considered. Check the response time of the concerned company, and make sure that the firm has time to attend to your requests. If a company has too many clients, it might be a matter of concern.
4. Working with a firm that doesn’t focus on finances. An accounting and tax preparation firm does more than just managing records and filing returns. They are supposed to guide their clients on all financial matters. They should discuss and suggest things as and when required, and their team of accountants and CPAs should mention the possible concerns related to investments. This kind of financial counseling is beneficial for taking the right business decisions at the right time.
5. Saving money by doing part-time DIY accounting. Well, many companies just hire CPAs for tax requirements, keeping the accounting work to themselves. This can lead to a lot of chaos, because accounting is a systematic process, and unless you keep track of everything in the right way, the tax experts cannot do much at the last minute. To be more specific, just hire a company that can handle everything, including accounting and tax matters.
If you can keep a check on these aspects, selecting a firm for your accounting needs should not be a hard task. Just take your time to ask questions, especially when you are unsure of their work and expertise.