Five Critical Mistakes Small Businesses Make When Hiring an Accountant

Accountant Accounting CPA Hiring Business Small

Hiring an Accountant

Hiring an accountant can be a challenge, especially if you’ve never hired an accountant before. There is no “how to” guide on hiring a suitable accountant, and sometimes we can make bad decisions based on poor information. Below are five critical mistakes small businesses regularly make when hiring an accountant. If you’re in the market – or will be in the market in the near future – for an accountant, do your best to avoid making these potentially costly mistakes.

Not Checking Qualifications

Thanks to software programs such as QuickBooks and Turbo Tax, just about anyone can call himself or herself an accountant these days. Because of this, you will want to check the qualifications of your accountant. You can do this by checking with your local accounting association to see if your accountant is a certified member. While being certified is not a necessity, it could raise flags if your accountant says they have a certification and they really don’t.

Not Checking References

Just because someone is an accountant doesn’t mean they are the right accountant for you. Ask for references when hiring an accountant and actually call them. Determine what kind of accountant they were for previous customers and also find out about their character. Some of the best advice you can get on a new hire can be found in former employers.

Hiring Too Soon

Despite the widespread idea that you should hire an accountant as soon as you start a business, there is such thing as hiring too soon. Too soon could mean hiring an accountant before you have the money to pay him. You want to make sure you actually have funds allocated to paying for your accountant because they can’t work for free.

Hiring Too Late

Just like you can hire an accountant too early, you can also hire one too late. Hiring too late means hiring an accountant after you have gotten your business into a heap of trouble and suddenly need someone to pull you out. You should never hire an accountant as an emergency solution.

Hiring For the Wrong Reasons

Believe it or not, there is such thing as hiring an account for the wrong reasons. Some people hire an accountant just because they think it looks good for the company or some other fluffy reason. Your accountant should always bring something of value to the table.

What other mistakes can businesses make as it relates to hiring an accountant? Leave your comments below.

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