If you are the owner of a small business doing your own taxes to cut costs, you surely know that handling accountancy activities can be extremely stressful for anyone lacking the right qualification, especially as the applicable laws keep changing all the time. If you calculate how much time you spend working on your accounting and how much money you will be able to make, should you spend all that time focusing on your business activities, you will see that hiring a tax accountant for your small business is money well spent. However, you should not expect finding the right specialist to be easy – here are a few tips about what you should think of and look for when evaluating available specialists in the first place.
Employee vs. an Independent Accountant or a Firm
An important thing to make up your mind about is whether you need an in-house accountant to work from your office and to be there whenever you have a question or an issue or working with an out-of-house accountant that you meet with regularly to hand over relevant documents would be a better option. Most small firms do not have the volume of transactions that would require a permanent, full-time or part-time employee for tax accountancy purposes, therefore they usually work with independent service providers on a consultancy basis.
You need a tax specialist who is authorized by the right professional bodies to provide tax accountancy services and to file tax returns and other documents on behalf of their clients. This means that the first thing you should check when considering an accountant is whether the specialist is a certified public accountant with an updated license – certified accountants need to continue their education even after passing the initial exam to obtain their license, to be able to remain certified and licensed and to stay up to date about the legislative changes that affect their work.
While all chartered accountants have general knowledge about how to handle the accountancy of a small companies, the specialists who have been working for larger companies might not be familiar with the most recent legislative changes that affect the accountancy services for small businesses. To be sure that you hire the right accountant, discuss the topic during your meetings with potential specialists to hire.
The Larger Perspective
The basic activities that accounting services Highlands Ranch providers offer usually involve the preparation of tax return documents and of financial statements, such as income statements, cash flow information and balance sheets. However, ideally, your tax accountant should also be able to offer much more than correctly preparing and filing your tax returns and other tax-related documents. Ideally, your accountant is also your partner in developing long-term business and financial strategies, helping you with business planning, financial planning, even with planning for your personal finances. Before hiring an accountant, discuss this aspect with the candidates, too – a few sentences are usually enough to help you figure out whether the accountant you are talking to will assist you achieve your financial goals or you can rely on them only for your tax calculations.