Dig Deeper: What to Ask Your Accountant
Choosing the Right Accountant: Finding a Referral
For an outside accountant, find out who and/or which firms your friends and colleagues are using. Ask people in similar industries for names or referrals. Mention that you are looking for an accountant at the country club or health club. "Word of mouth is one of the best ways to identify good candidates for your business," Chamberlain says. "Maybe your corporate attorney can make a recommendation. Your industry trade association also can be a good resource."
If you are planning on hiring an inside accountant, get the word out to colleagues and friends. Newspaper advertisements, employee search firms, and Internet websites are all resources that can be tapped. "Search firms charge fees, so know exactly what they are providing -- of the scope of work -- before committing to that service," Chamberlain says.
"In a lot of relationships, the accountant is a trusted business advisor to that small business. They act as more than just outside accounting help," says Koziel. "They're a counselor to the family, a priest and a rabbi, and they are involved in so many aspects of the owner's business that the relationship has to be a trusting relationship."
Choosing the Right Accountant: Interviews and Reference Checks
Keep in mind that small business can ill afford to make a hiring mistake -- especially with an accountant. The accountant will have access to the company's books, records, and other proprietary information, Chamberlain says.
It is imperative that the business owner take the time to interview the firms and individual candidates. Check if they have experience in your industry, your size of company, and software sophistication.
If you are interviewing outside firms, ask to meet with the staff members who will be servicing your account. Get comfortable with the firms' culture and most importantly, the time they will dedicate to service your business in a prompt manner. Make sure communication is clear and direct even with negative news or advice.
Finally, check references. This is an important decision and the business owner must perform adequate due diligence before making a decision.
"Choosing an in-house accountant or accounting firm is a milestone for a small business," Chamberlain says. "It is a signal that the company wants to strengthen its financial function, improve its management reporting, and position the company for growth. Many companies wait too long before making this decision resulting in sloppy and inaccurate reporting at a crucial time in the company's growth." Therefore, do your best to hire the right candidate for your business.
Dig Deeper: Recruiting and Hiring
Choosing the Right Accountant: Additional Resources
American Institute of Certified Public Accountants
Consumer information including 'Find a CPA.'
Building Your Team
What the right accountant can do for a small business.
Professional Association of Small Business Accountants
Information, resources and 'Find an Accountant.'
AICPA Guide to CPA Services
How a CPA can help a small business.
Peer Review Database
Searchable database of CPA firms around the country and their participation in peer review programs.
