Three-quarters of all small business owners agree that small business taxes is one of the top challenges they face.
The tax code is confusing and always changing. It’s hard for anyone to keep up. On top of that, small business owners have to meet deadlines and manage their finances. All while running a business.
The only way to make it easier is to outsource to a small business accountant. You just have to find the right one for your business.
Do you want to know what to look for in an accountant? Keep reading to find out!
1. Your Accounting Needs
The first thing you have to look at is your business need. Do you need a firm to just do your taxes or do you need year-round bookkeeping? Your business might need tax advice, reporting, and financial statements.
If you need general tax preparation, you could hire an accountant. If you need a deep dive into your financials, then a certified accountant would be your best bet.
Experience matters in accounting. Experienced accountants understand different tax issues. They’ve probably worked with the IRS on behalf of previous clients.
You have to have an accountant that has at least a few years of experience. It also helps if they’re familiar with your industry.
3. Additional Services
Does the accounting firm offer other services beyond tax preparation? The more you can consolidate services, the easier it is to manage. You won’t have to bounce back and forth between service providers.
A PEO like Avitus Group offers more than accounting and bookkeeping. You can have marketing, HR, and payroll services under one roof.
Accountants might charge a monthly fee for their services. Another common pricing model is to bill for tax preparation by the document. The more complex your tax returns are, the more the return will cost.
You have to look at the experience of the accounting firm and the services they provide. You’ll have to weigh that against your budget. You might be able to negotiate a payment schedule with an accountant.
5. Accounting Approach
Accounting firms take different approaches to manage your books and taxes. There are some accountants that just do your taxes and are available to answer questions during the year.
Other accountants help you with tax planning. You can meet with them in the fall and determine if you should invest more in the business at the end of the year. That kind of insight can help you lower your tax bill and grow your business.
You should also assess how your taxes are done. A team approach to taxes limits the possibility of errors because several people look at your tax returns before they’re submitted to the IRS.
Find the Right Small Business Accountant
You have the tools and information you need to find the right small business accountant for your business. Always start with your business needs, then look for the right accountant to help your business grow.
Visit the Finance section of this site for more helpful financial tips!