How to Hire an Accountant
Using an accounting professional to oversee the annual closing of your company's books and to prepare its taxes leaves you, the business owner, more time to concentrate on your core duties. You might also want to have your personal finances overseen by an accountant if you have several sources of income and/or a variety of deductions.
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Instructions
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Learn How to Hire an Accountant
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1
Understand the different accounting functions that take place within a year. Bills are paid and revenues are received throughout the month, accounts are closed on a monthly basis, financial documents are prepared on at least a quarterly basis and taxes are filed each quarter at a minimum.
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2
Know which tasks are done by which type of accounting employee. Accounts payable and accounts receivable are often handled by a bookkeeper and accounting clerks. Even small companies usually have a controller who oversees the monthly and quarterly closing of the books. Accountants supervise the year end closing of accounts and the filing of tax returns.
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3
Recognize the differences between accountants and Certified Public Accountants (CPA). In order to be designated as a CPA, an accountant must pass a rigorous, multi-part examination given by the American Institute of Certified Public Accountants. CPAs may also have to certified by the states in which they practice.
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Differentiate between the duties of an accountant and a CPA. Accountants are qualified to handle most of the day to day business of a firm and they can also be controllers of a company. Only CPAs can sign off on the audited results of a company.
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Ask appropriate questions about education and experience when interviewing potential accountants. Know what type of degrees and certifications the applicant has and if he or she specializes in a certain area of accounting law. Make sure that the candidate has been keeping up with requirements for continuing education.
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Ask appropriate questions about billing and response time during the interview. Accountants not hired as full time employees generally charge by the hour. Have a definite, guaranteed response time.
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Ask if the accounting work will be done by a senior member of the firm or a junior member of the firm. If you hire an accounting firm rather than a single accountant, make sure you know who your direct contact will be.
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Tips & Warnings
Consider using a non-traditional year end period to close your company books. Accountants are busiest during the periods leading up to April 15 and December 31. Many will offer double digit discounts to have your business year end on another day, such as June 30.
