One of the most difficult aspects of running your own small business is the pressure to do everything by yourself.
This is very evident in the fact that most small business owners take all the responsibility on their shoulders.
While that’s understandable for many aspects of their business, it’s not really a good idea with finances.
The business owner may have some experience in finance, but you should never do your own accounting (unless you’re an accountant).
That’s why many small business owners turn to outsourcing accounting to take care of their needs.
This allows them to pay a specific hourly or monthly fee to have their accounts taken care of, which is a good way to cut expenses.
But how can you decide what the best accounting is for your business? We’ll look at the 3 most important questions to ask first.
“How long have you been in business?”
This is the first and perhaps most important question you should ask your potential accountant.
It may seem a bit unfair to many people (as a younger accountant may have more talent than an older one). However, experience is generally better than inexperience.
That’s why you shouldn’t be scared to ask your accountant this question.
Those accountants that have lots of experience with businesses of your size and type will be a great match for you.
“Can I talk to your references?”
The implication is that they do have references. Any good accounting agency you are considering hiring should have references.
When they provide you with the list of references, you should make it a point to call those people and ask them specific questions.
These questions should revolve around the types of processes and results the accounting firm was able to achieve.
It is best to find references that have businesses similar in scope and size to yours.
That way, you will know that their answers are not just applicable to your niche, but also suited.
“How much will it cost?”
Some variation of this question is very important.
Naturally, this is a question you should ask at some point during the interview or research process.
Finding out how much it will cost before you commit to using the accounting services is a good way to prepare yourself for the financial burden.
For many business owners, they simply cannot afford the top tier accounting firms, so they tend to settle for lesser (though still effective) accountants.
Accountants will usually charge by the hour or for a fixed (for example, monthly) fee.
If you need more flexibility, then per hour is a great way to get started. That way you can change your order month-by-month and week-by-week.
If you’d like the stability of knowing exactly how much you’ll pay, you can choose to pay a fixed fee.
Outsourcing your accounting doesn’t have to be hard
Even though it can be daunting to try to find a good accountant for your business, it doesn’t have to be so hard to outsource your accounting.
With the right strategy and these three all-important questions, you’ll find the perfect match for your business.