When you go about hiring a new accountant, it is imperative that you ask them the right questions to gauge their experience and how well they will be able to get to grips with the way that your business works.
While some may think that all accountants work in the same way, smart SME owners know that this simply isn’t the case at all.
Read on to find out about the 6 questions you need to be asking your accountant now.
How long have you been in business?
Coherent finances can make all the difference to your SME, so an accountant that has been in business for a number of years and has relevant experience is going to be much better for you than one that is just starting out. Ensure that their portfolio aligns with your business- if they have worked with companies of a similar size and industry to your own, even better.
How do you communicate with your clients?
When it comes to managing money, communication is key and you need to make sure that you are on the same page as your accountant from the get-go. Do you want to hold regular face to face meetings with them or would you prefer everything to be handled electronically? Whatever your preference is, be sure to have this conversation early on so you can establish what works best for both parties.
How are you going to go about improving my bottom line?
The role of an accountant is to use all the means at their disposable to minimise your tax exposure. Be sure to provide the accountant with information regarding your current financial situation. They will then need to study this and present you with plausible ways that you can go about retaining more of your money each month.
Will my account be handled by one person?
Ensuring that your account is only managed by one person is going to result in more consistent reporting and will mean that you develop a better relationship with your accountant. A good firm will know the importance of this, so be sure to ask this question during your initial meeting.
Do you have references?
Would you ever hire a new member of staff without first checking their references? The answer to this is hopefully no, and the same should be true when you are shopping for a new accountant. You need to hear from other businesses about their experiences of working with a particular accountant. If they have developed a good relationship and experienced financial success, it’s likely that you may as well.
What do you think are the most significant risks to my industry?
This is a really important question as it will help you to determine how proactive an accounting firm is. If they are able to recognise potential risks, it’s likely that they are in the know and will be able to steer your firm in the right direction.