Hiring an Accountant
Sometimes
lessons are learned the hard way. This is exactly what
happened to Ken Kramer of Austin,
Texas when he opened his boutique clothing store four
years ago. He realized that he would need to hire an
accountant, so his first instinct was to use a friend,
thinking he’d save a little money that way. Just the
opposite happened.
"Hiring someone who’s a friend,
but is not necessarily the right person for the job, was
an enormous and costly mistake,” according to Kramer.
"He had no experience whatsoever in the small business
sector, and that turned out to be critical.”
Although large and small businesses are governed by the
same accounting rules, their decision making processes
are vastly different, and there are diverse sets of pros
and cons to making certain business-critical decisions.
Kramer was fortunate in that he recognized his error of
judgment early enough to rectify his mistake. He
subsequently hired the right professional, and it did
not take long for the positive impact on his business to
become apparent.
His new CPA instantly proved his worth by disputing a
tax bill that saved Kramer over $5,800. "I had resigned
myself to paying the full amount even though I didn’t
think it looked right," Kramer says. "My new guy sorted
it out right away, and you’d better believe he’s the
partner I’ll be working with from now on!”
A Good Accountant Is
Invaluable
Accountants are crucial to any business and
choosing a good accountant is vital if a business is to
get the right advice on issues that can make or break
it. Accountants will provide guidance on key business
issues such as how to generate capital, the nature and
impact of taxes, and planning for growth.
Hiring the right accountant for your
business can bring many other benefits, as well.
Make the right choice, and
your accountant will prove his or her worth to your
business in ways that do not always have to do with
crunching numbers. For example, whether you need advice
on how set up and maintain a payroll system for your
employees or advice concerning the timing of the launch
of a new product or service, a competent, experienced
accountant will have the answers.
Business Planning
Business planning is all
about finding and maintaining a competitive advantage
over your rivals. You can achieve this in many different
ways, from introducing a new and better product or
service to reducing the price of what you supply.
However, these decisions mustn’t be taken lightly as
they will certainly have an impact on the financial
performance of your business. A good accountant will
provide you with the expert advice needed to ensure you
make the right decisions.
Even when a business is
fully set up and operating efficiently, it is prudent to
retain the services of an accountant to offer advice and
review your accounting systems.
- Business Tax
Planning
- To get the best value from your
accountant it is a good idea for them to be
involved right at the beginning of the tax planning
stage and not just when you are ready to file your
tax returns.
-
Personal tax planning
- Often, personal tax and business
tax issues can go hand in hand. “My initial need was
for advice on setting up my business," says Ray
Herbert, president of Sound Solutions, Inc., a firm
that supplies sound and music solutions in Houston,
Texas. "Later my accountant also helped me with my
personal tax issues, providing invaluable advice on
inheritance tax planning."
- Networking – There is no reason why you shouldn’t utilize your accountant’s network of contacts, for they can potentially be an excellent source of new business for you. Accountants will undoubtedly have other clients with mutual requirements. For example, there may be one client who is looking for an opportunity to invest in a business and another client who, at the same time, is seeking financial backing to get his or her business off the ground. Accountants are also a good and reliable source of referral for other professionals. They can assist your small business with recommendations for attorneys, bankers, insurance brokers, and attorneys.
What You Should Pay (New page and link)
