Elevation requires delegation!
You can no longer afford to be a jack of all trades. It's wasting your time and money!
Hiring an accountant to help you in your business is a huge step!
Having someone to work virtually adds another "am I ready for this" to your already long list of worries. You're a bag of nerves. You're somewhat afraid to trust someone with your baby!
But, it doesn't have to be that way.
Before we get into what you should look for when hiring an accountant, let's clearly differentiate between bookkeeper and accountant. Okay? Okay.
Bookkeeper: Record keeping, data entry and bill payments.
- Prepares adjusting entries
- Prepares company financial statements
- Analyzes costs of operations
- Completes income tax returns
- Aides the business owner in understanding the impact of financial decisions
Virtual CFO: Assists in strategically planning and looking to the future
Now, that we've gotten that out the way, here are four questions you should ask:
1. How do you bill for your services?
Some accountants charge by the hour, while others, like myself, bill a flat rate. A flat rate allows you to always know how much you're paying versus being charged hourly, you don't know what the end fee will be. With hourly rates, technical issues are also billed for! So, if it normally takes 2 to 3 hours to complete your bookkeeping, but today the software fails. .Guess what? You incur that fee. Regardless of the billing approach, be sure to get an estimate of an accountant's likely fees.
2. How often will you all chat to stay updated?
Delivery of financial statements are all fine and dandy, but if you can't use them to grow your business or receive advice from the expert when you need it, what's the point? I schedule 2 monthly accounting + accountability calls with my clients and I'm available anytime for them. Together, we'll set goals, create a plan to reach them and monitor them.
3. Can you understand them?
Not because they speak with an accent, but do they talk to you in plain English without financial jargon? You don't care about the things you can't use or vocabulary you don't understand. You need insight to build a profitable business. Are you priced correctly? Is your cost of doing business too high? Simple questions answered in plain English to boost your business's bank accounts.
4. What is your goal for working with them?
I'm all about preparing the financial documents needed, but I want your business to be profitable. It doesn't matter to me that your business brings in $200k monthly if your expenses outweigh that amount.
So, before you hire, you should get crystal clear on what you need.
Do you just want someone to input the transactions, reconcile them and create financial statements? Bookkeeper.
Do you want someone to point out the trends in your business finances? Help you determine your top earning service or product? Explain these things to you? Accountant.
Do you want someone that understands the dynamics of your business? Translates your goals into a budget/forecast? Take the past trends of your business and projects them into the future? Assists you when making the tough decisions in your business? Like can you afford to hire that assistant long-term? Virtual CFO.
Note: You’re probably asking yourself, “Can’t one person do all of this?” Yes, but the reality is not all do this. (A to Z Financial Group, LLC/Posh Profits does ALL of this.)
Building the team for your small business is a huge step, but if you want to grow, which I'm sure you do, it's a step you need to make like yesterday.
Who and for what reason you hire is a matter of opinion and preference, of course. You might think you need a virtual assistant first or a project manager or sales person. But, because I'm a little biased, I know you should hire an accountant ASAP.
Want to work with me?
Check out my services here! Schedule a call and let's get you clear on your business's finances.