If you're a small-business owner who’s considering hiring an accountant, it's important to understand that their work goes beyond balancing your accounting books. Nowadays, accountants also double up as financial advisors and can help you make better-informed decisions on various matters.
As a small-business owner, understanding the value of an accountant is just the first step. With so many qualified accountants to choose from, it can be an arduous task to know who to hire. No matter how young your business venture is, having an accountant is imperative if you want to set yourself up for success.
Keep reading to learn what to look for when hiring the right accountant for your business.
First things first: What’s the difference between a CPA, bookkeeper, and an accounting firm? An accountant prepares a company’s financial documents, ensures tax compliance, and in some cases provides financial advice to business owners.
Similar to an accountant, a bookkeeper simply records financial transactions and balances accounting books. On the other hand, a CPA is a certified accountant and based on their specialization, can work as accountants, auditors, tax consultants, and financial advisors. An accounting firm can provide all accounting services under one roof, including providing experienced bookkeepers and CPAs based on your specific needs.
Depending on the accountant’s qualifications, some also provide a complex array of financial services. Here are a few things they can help with:
- Calculate tax deductions
- Inventory management
- Cash flow management
- Identify potential growth areas
- Prepare financial reports
- Ensure tax compliance