As the saying goes, there are only two things that are certain-death and taxes.
As a result, Accountants are highly desired professionals. After all, everyone has to file personal or business taxes.
When you think about hiring an accountant, we often look at top level resume information. These include;
- Are they licensed-meaning do they have their CPA or CGA?
- Are they organized?
- How long have they been practising?
- Are they efficient?
One additional area that should be considered is whether your accountant or bookkeeper is entrepreneurial.
About four years ago, I had a client who was interested in purchasing a franchise. He had spoken to a few other franchisees and they were successful. So he decided to go after it.
He took the information to his accountant, and without understanding the business model and the corporate group who he was working with, the accountant advised the client to not to go for it.
Several years later the client still feels that he missed the window of opportunity, when he sees how well the business is doing.
On another note, I had an acquaintance who was in direct sales and her accountant was advising her to leave the business because it couldn’t be making any money.
She fired him.
He didn’t understand the business model and couldn’t see the possibility. She went on to make multi-millions and became the top leader in the business.
If you are running a Direct Sales, Party Plan or MLM business, you will need an accountant who understands how you generate revenues and clients for your business.
They should also understand how you earn incentives and acquire customers.
When you are looking for an accountant, you need someone who understands your industry and your category of business.
Just like how all doctors are not created equally – not all accountants are the same. You wouldn’t go to a Podiatrist if you have heart problems, and you shouldn’t go to an accountant who only works on personal taxes if you are a Business Owner.
If you run an online business, or create apps, then you need an accountant who understands your business. Not all industries are created equally.
Why monthly bookkeeping matters?
An accountant completes your taxes at the end of the year. Accountants summarize money that has been spent. They count the money that has already been made. This is important for three reasons:
- We need to file our taxes.
- We need to determine how much Profit we have made or lost
- We need to know the overall performance of the business and its operations.
Bookkeeping done every month helps you to keep track of cash flow. You will be able to make smarter spending decisions. You will be aware if you are on track to meeting your goals or if you need to be increasing your sales.
What to look for when choosing an accountant?
- Hire an accountant or a bookkeeper who is entrepreneurial.
- Your accountant should be talking about numbers that are happening in the future, not just in the past.
- Is your accountant working with other business owners? The benefit is that they would be familiar with what is going on in the business environment, and can advise you accordingly. Also, they would be able to refer clients to you so that you can collaborate with other business owners. You will be able to benefit from their client’s list.
- Your accountant should be able to help your business identify areas that are negatively affecting your profitability and growth, and develop solutions that are practical and technically sound.
Leave a comment below and tell me if your accountant or bookkeeper is entrepreneurial.