How to choose the right accountant.

Choosing the right accountant can be the most important decision a small business can make. In the end, a good accountant is not just a bean counter but a valuable financial consultant. They can help you maximize your revenues and minimize expenses by uncovering key success factors in your business.

Your accountant gains detailed knowledge of your business and its operations. Over time they can quickly audit your business and provide you with the required reporting. It is this familiarity that makes changing accountants very painful. The causes many businesses with mediocre accountants to keep with them year after year instead of finding a better accountant.

Knowing the pain involved with changing accountants it is surprising how many people don't spend the effort to find the right accountant for them. They know little about accounting and think one is like another.

But the reality is that all accountants are not created equal.

So how should I decide who is the right accountant for me? Start by considering what accounting services you need and who you would work best with:

• Area of Specialization. A small firm may not have access to the area of specialization you need. Accounting covers a broad range of topics and most accountants narrow their range of specialty. It is impossible for any one accountant to handle all accounting topics well. Find out which topics a firm concentrates in or has access to.
• Firm Size. Do you prefer the one-on-one contact typical of a smaller firm? Or would you prefer to work with a larger team? This is more the norm of a larger firm. At a larger firm your work may be done by junior staff or subcontracted out.
• Services Needed. Do you need a firm just to prepare a tax return and year-end financial statements or are you also interested in more detailed financial planning or business advice. You may also need more routine bookkeeping help. Accountants can also manage your payroll and employee benefit plans.
• References. Check the references of any accountant before you hire them. Make sure they contact their clients more than just during tax time.
• Experience. If possible, hire accountants who specialize in your needs or at least have experience with other companies in your industry. Experience in your industry reduces the time it will take them to understand your business.
• CPA Requirements. Many people are confused as to what is meant by a certified public accountant (CPA). A CPA has a passed a competency test, has met levels of education and experience and must meet continuing education requirement. While certain situations like audits demand a CPA's involvement; other tasks including bookkeeping and tax preparation can be handled by a non-certified accountant.
• Comfort level. It is important to be comfortable with your accountant. They should become a valuable member of your business advisors.

But don't forget that the most important factor in choosing an accountant is the value they can bring to your business. Evaluating the above criteria of each accountant is a great way to help you pick the right one.