What you the Entrepreneur should expect from your Accountant

Yes, you need an accountant. However, its not like car insurance, where many people buy it just to be legal to drive hoping they never have to make a claim. No, the services of an accountant will effect your business in many real ways. So one should be selective when hiring and obtaining the services of a certified public accountant. An accountant can help you structure your business, and prepare you for self employment taxes and estimated taxes so that at the end of the year, you aren't suddenly in denial when Uncle Sam comes a calling. But a CPA can do more than just prepare your estimated taxes. Here are a few services that a quality CPA can provide. And yes, it is important to hire a quality CPA. I would discourage the entrepreneur from hiring a friend to do your accounting, when they boast of taking accounting classes at the local community college. Or trying to do the work yourself, hoping to save a little money. The mistakes you make can cost far more than what you pay a CPA. So, here are some key issues that a quality CPA can provide.

For starters, a good CPA can help you write a business plan. They can also help you produce data that along with your business plan, you can go to the bank and obtain loan. A CPA can help you set up your business structure, and tell you if and when you need to incorporate. A CPA can help you find the right software for your business, which will help you with record keeping and billing statements. You need software that is inline with your business's needs. Also, a good CPA will help you set up said software and get you started using the program in a consistant way. Sometimes you should pay with cash, and sometimes you should borrow money for a purchase. A CPA you have a good relationship with can help you know when each is appropriate. A good CPA will help you set up a tax deferred retirement plan for you, your family, and your employees if you so desire. If you want to transfer your business to your spouse or your children, a CPA can help you with that. They can advise you when you may need an attorney, or a financial consultant, and often make suggestions for you based on your specific needs. And finally, a quality CPA that you have a professional but close relationship with can help you see which aspects of your business are doing better than others, and thereby help you focus on areas that will increase your business's growth, and trim back or eliminate those areas of your business that are dragging and non cost effective.

So how do you find the right CPA? Well if you are a small business, try looking for a small accounting firm. Bigger is not always better. So if your business has 10 or less employees, try finding an accounting firm that has 10 or less employees. Look for a CPA that has knowledge in your specific business field. Make sure your CPA is proficient with technology. Computers play such a huge role in todays economy... so your father's accountant may not be your best bet in today's market. (your accountant should be able to text you atleast). You should not only meet with your CPA regularly (quarterly) at their office, but have them come to your place of business too. There may be simple suggestions they can make just by seeing how you operate.

Hiring the right accountant could be one of the most important decisions during your entrepreneurial experience. Many people may make the mistake of thinking "well, an accountant doesn't make me money... So I will spend more money on a new fangled espresso machine, and less on a quality accountant". This is a mistake. Money management is more important than total cash income, because even if you have a small budget, if you manage your money wisely, you will 'feel richer' than if you have a large cash income, but make bad decisions, and you will feel like you are always in debt. A quality CPA can help you trim here, and spend there, make wise purchases, and avoid bad ones, and ultimately increase the amount of black ink in your check book, and cash in your pocket.