As a small business owner, you may be taking care of your bookkeeping yourself. However, as you try to scale your business, you may find that you need more technical financial advice and assistance. An outsourced accountant can provide detailed financial reporting, business forecasting and financial data analysis, as well as tax planning, preparation and filing.
There are a number of factors that will influence your search for accounting services. Let’s take a look at a few of those factors here to help get you started.
First, you will want to consider the benefits of hiring outsourced accounting services. As pricing is an important factor, we provide a look at some of the pricing models that are available, which vary depending on a range of factors.
You will want to find an accountant with the right qualifications who fits with your business. Let’s take a look at those qualifications and what makes a good fit. And finally, we will suggest some questions for you to ask potential accountants to help narrow your search.
Inspired Accounting, LLC, offers competitively priced small business accounting services. Our team would love to earn your trust and your business which is why we want to ensure you are equipped with enough information to make an informed decision.
Most small business owners likely have limited accounting knowledge, unless they are a CPA or have an accounting degree. By tapping outsourced accounting services, you can gain a clearer financial picture of your business, make better financial decisions and have a higher level of confidence in your tax submissions. But there are more benefits as well.
There’s an old adage that you have to spend money to make money, which may or may not be accurate, depending on the way you look at it. But if you carefully spend money, it can often result in savings, as in the case of outsourcing your small business accounting services.
An outsourced accountant can help you develop strategies for inventory management and budgeting, make recommendations on contracts, keep financial records organized, and more. One of the best things they do, however, is free up the small business owner’s time — allowing them to concentrate on running and growing their business.
An outsourced accountant can help you properly prepare and submit all needed tax documents. As they stay current with business tax laws, they can provide the expertise needed to properly maximize tax deductions and minimize tax liabilities to decrease financial risk and help your business remain compliant with tax laws and get the appropriate tax returns.
To grow your business, you must first know your business’s exact financial status. By outsourcing accounting services, you will get a clearer picture of your finances, get advice on reducing business expenses and learn ways to increase cash flow.
Accountants and accounting firms utilize various pricing models. When trying to determine which would work best and be the most cost-effective for your business, you need to consider your specific needs and what outcomes you are looking for. The average cost of an accountant will depend greatly on which pricing model is being used.
Retainer — A monthly rate paid for what is basically a financial maintenance plan for your business. This model is especially helpful if your business needs regular accounting services.
Hourly rate — One of the more popular models is payment on an hourly basis. According to the Bureau of Labor Statistics, in 2021, the average hourly rate of pay for accountants was $37. However, factors such as location, industry being served, experience and qualifications can impact that rate.
When researching accountants, you will want to consider factors such as their experience level and whether they have worked in your industry or with businesses your size. Also, the specific services you need and the type of software they utilize may also influence your decision.
Accountants can hold bachelor’s or master’s degrees, be a Certified Public Accountant (CPA), a Certified Fraud Examiner (CFE) or Certified Management Accountant (CMA). The more certifications, the higher rates they will most likely command. A lot think a CPA is necessary, however, the only things a CPA can do that a non- CPA can not is Attest and Audit. You may find a non-CPA to be able to provide more value for the money you spend.
Once you have determined your business’s needs and completed your research, you will want to schedule a consultation with your top candidates to determine which will provide the best fit for handling your day to day accounting tasks.
Being prepared when you meet your top candidates will help you get the information needed to make your decision. We’ve listed some questions below that you can use in your interviews.
Inspired Accounting, LLC, is the trusted financial partner you need to improve your small business’s financial picture. We can provide the financial assistance you need to free your time to focus on growing your business. We would love the chance to meet with you to see if we meet your expectations!