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by admin Many small businesspeople have a hard time dealing with the financial aspect of their business. They may be great innovators, have plenty of enthusiasm, and be the best salesperson around, but ask them to create a balance sheet and watch their eyes glaze over. Even the most power ful accounting software is useless if you cannot input or understand the data. So sometimes, nay often, hiring an accountant or bookkeeper is smart business.

Duties of an Accountant
While accountants cannot guarantee your success, they can be an important adjunct to your business. Their basic services include keeping track of how much your business owes, how much it is owed, creating financial statements (such as balance sheets, income statements, and cash flow statements), and reconciling bank statements. Beyond that, a CPA might
• Handle taxes. A good accountant can save your business thousands of dollars through proper tax planning.
• Do your payroll. Payroll is often outsourced.
• Handle audits. An accountant might prepare an audit for a small business whose potential investors require audited books.
• Deal with the IRS. The other sort of audit, the unwelcome one, is another place where accountants can come in quite handy.
• Offer business and financial planning. A CPA can help with succession and estate planning, or help value the business for sale purposes.

So where do you find a good one? Referrals are the best source. If you know someone who has a good accountant, get their name. Get referrals from friends, business associates, your banker, your attorney, or from other entrepreneurs whom you know. After you get a few names, set up some appointments. Interview a few and find out.

• Their experience. You want someone who deals with small businesses, especially in your field.• Whether timely service is delivered. Numbers are constantly coming in from your business, so make sure that you will get reports at least monthly.
• Who will service the account? Will it be the person you are meeting, or some junior accountant you do not know?
• What services can you expect beyond reporting? Will they handle your taxes, payroll, or what?
• Will you get business consulting as well? A good accountant or bookkeeper should become a valuable member of your team, helping you in areas where you are weak.
• How much will it cost? You should know fairly accurately how much time they will put in each month and what you should expect to pay.

Again, as this person should become a dependable business advisor, you want someone whom you can trust and with whom you get along well and feel comfortable. Independent accountants or small accounting firms can provide personalized service, while a Big Five firm offers more services and can lend prestige to your company. This in turn may help you raise capital, establish credit, and open doors.

Cutting Costs
Accountants are professionals and their fees are not inexpensive. Even so, there are a few ways to keep your accounting costs down.
• Keep great records. Keep receipts organized. Have your ledger legible and up-to-date. Have your records automated if possible.
• Handle the small stuff. The stuff that you can do, do.
• Use a bookkeeper. If all you need is someone to do the books, a bookkeeper is much less expensive.