Choosing an Accountant: 5 Essential Tips for Business Owners

9/26/2024 - By Jess Schultz, CPA

Every business needs a good accountant. You need someone who can translate your business activity into organized (and useful) financial data. Finding this person or persons can be challenging, and determining the cost-benefit of an external or internal accountant can be a difficult decision - you will be trusting someone with your sensitive data, hoping that they have the expertise to translate your business activity correctly, and needing them to be there when you cook up another strategic business move.

As an external auditor, my team and I have a unique position of seeing the "make or break" moments when the time comes for business owners to benefit or suffer from the selection of the accountant they have made for their enterprise. An excellent accountant knows your books like the back of their hand, they have detailed and complete records, and they answer questions about the year confidently. An accountant who's a bad fit will be uninterested in your success, be satisfied with incomplete or incorrect records, and may have little to no answers to important financial questions.

1. Experience

When I mentioned "translating" your business activity, I was serious. The proper language of accounting basics takes time to learn, and industry-specific accounting takes even longer. Similar to the tax code, the requirements for recording and reporting your financial data is subject to changes and amendments. Look for a qualified CPA who has multiple clients in your industry and your size. They will offer confident feedback for you and have a sense of industry benchmarks and standard practices you can benefit from.

2. Reputation

The best place to start when looking for an accountant to trust is with professionals that you already trust. Ask your representatives with your bank, insurance company, and surety. They see the good and the bad aspects of local accounting firms' work and will be able to give you a good recommendation. From there, do some research and reach out to your shortlist to discuss your needs further.

3. Fees

More work will be more fees. If you want an easy bookkeeping service for a non-complex industry you can expect fees will be lower than if you need a full-service firm that will also manage your payroll and billing, and perhaps have an experienced CPA operate as a fractional CFO for you in a new industry. Different firms excel in different areas, so have an idea of what you're looking for and what you are willing to pay for having confidence and peace of mind in the professionals you choose.

4. Communication

A good accounting professional should be responsive and competent. They should be able to communicate accounting issues and questions to you in a way that you can understand, and they should be committed to your success. Be wary of firms who make things overly-complex and aren't available to explain or check in with you on your accounting questions.

5. Integration (Internal or External?)

There are three major factors you’ll want to consider here:

How large is your business? Do you feel like someone on the outside can keep a good grasp of your records with periodic check-ins or is there enough activity that you will need someone on the inside who's fully immersed and always plugged in?
Is your business complex? Do you need someone to become your "expert"? External accountants can certainly meet that need, but at that point, balancing your cost-benefit against someone internal will be crucial.
How fast are you growing or changing? Are you an owner who is always dreaming and pivoting in a new direction with your business? Internal or external, having a trusted relationship with a full-service accounting firm can help in unimaginable ways that you may have not considered yet. More importantly, that connection with a financial powerhouse will allow for you and your business to maximize your growth potential all the while knowing your financial needs are handled by an expert team.

In the end, selecting the right accountant can help you achieve great heights with your business; a poor choice could weigh it down. Remember to consider experience, reputation, fees, communication, and connection.

Questions?

Our team at Saltmarsh has had the opportunity to work with many external and internal accountants at the times when it matters most, and we would love to answer any questions you may have. We achieve success through the success of others, and we'd love to see you and your business thrive.

About the Author | Jess Schultz, CPA

Jess is a senior in the Audit & Assurance Services practice of Saltmarsh, Cleaveland & Gund. Her primary areas of expertise include providing audit and assurance services for the firm’s manufacturing, construction and healthcare clients. Jess also has experience serving nonprofit organizations, and prior to joining Saltmarsh, worked as a tax analyst for a Big Four firm.