Go Back
Small businesses often struggle to manage their finances, especially when they are just getting started. It’s not uncommon for business owners to feel overwhelmed by the day-to-day tasks of running their company and let their financial records fall by the wayside. This can lead to serious problems down the road, including inaccurate tax filings, missed growth opportunities, and even business failure. Hiring a bookkeeper can help small businesses avoid these pitfalls. In fact, one of the key benefits of hiring a bookkeeper is having accurate, up-to-date financial records that support smarter business decisions and reduce stress during tax season. A bookkeeper can manage your financial records so you can focus on running your business. If you’re ready to get your small business finances in order, this article will help you learn how to pick the best accountant for a small business to meet your unique needs.
Haven offers accounting services for small businesses that can help you get organized and stay that way. Our team of experienced professionals can help you manage your financial records so you can focus on running your business.
Key Qualities To Look For In A Small Business Accountant
Whether you run a multinational company or a small startup, selecting the right accountant for your needs can make or break your business. According to recent research from Onpay, 86% of small business owners view their accountants as a trusted advisor, and 82% believe their accounting firm knows their business inside out.
With these statistics in mind, this article explores five key characteristics to consider when choosing an accountant to match your business needs. Discover how these qualities contribute to building a trusting relationship with your accountant, spurring your business to new heights.
1. Technical Expertise to Streamline Accountant Support Tasks
Choosing an accountant with technical expertise in selecting the best financial reporting and management software will ensure that your business can automate tasks and streamline finance teams’ workloads. The latest accounting technologies can significantly reduce the risk of accounting errors, providing business owners with peace of mind.
2. Prioritising Deep Industry Knowledge to Drive Success
Choosing an accountant with experience in your industry will help you overcome your unique business challenges and seize new revenue-generating opportunities.
They can help you understand how changing tax regulations and market trends may impact your business, helping you prepare for all eventualities before they become an issue for your business.
3. Maintaining Strong Ethical Standards of Practice
Maintaining high ethical standards is vital in the accounting industry. This includes handling sensitive financial information securely, providing guidance to inform financial decision-making (such as corporate relocation strategies), and maintaining complete objectivity in financial reporting practices.
4. Communicating Accountant Support Services Clearly and Empathetically
Practical communication skills should be a top priority for modern accounting firms, as business owners are increasingly communicating across various digital platforms around the clock, seeking the advice and support they need to advance their businesses.
Choosing an accountant who’s skilled in explaining financial concepts in simple terms is an admirable and valuable soft skill for an accountant to possess. But, more importantly, the best accountants are empathetic and quick to respond to your queries, fostering a collaborative relationship that will last for years to come.
5. Attention to Detail, Contributing to Proactive Accountant Support
Meticulous attention to detail is a hallmark of an excellent accountant. This innate quality often draws people to the profession initially. Ensuring accuracy in financial reporting, tax filing, and compliance protocols is essential for avoiding costly mistakes.
A detail-oriented accountant will also provide proactive accounting support through data analytics findings. Their insights into your financial data will help you make informed business decisions to help you stay ahead of your competitors.
Related Reading
How Can You Find The Right Accountant For Your Small Business?
Get Recommendations from Your Network
Start by asking around. Your professional network understands your business and can provide reliable recommendations tailored to your unique needs. Speak with your company’s:
Legal counsel
Bank representatives
Business coach
Industry contacts
Check for a Certified Public Accountant (CPA) License
While an accountant doesn’t necessarily need a CPA license to be qualified, hiring a CPA offers key advantages:
Expertise in complex accounting concepts such as:
Business law
Ethics
Financial reporting
Auditing
Commitment to staying current with industry knowledge and regulations
A CPA ensures your business receives professional, compliant financial support.
Prepare Interview Questions to Assess Communication and Fit
Once you identify potential accountants, schedule an in-person or video interview to evaluate their compatibility with your company’s culture and workflow.
Because the accountant will be deeply involved in your business’s financial health, ask questions about:
Communication style, manner, and frequency.
How they handle complications and challenges.
Look for a trusted partner with strong attention to detail and a perspective aligned with your company’s goals.
Founder-Focused Financial Support That Scales With You
Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings and R&D credits that put cash back in your pocket, as well as fractional CFO services. Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses.
Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.
Related Reading
What Questions Should You Ask Your Accountant?
What Services Do You Offer?
Accountants have different areas of expertise. Some focus solely on tax preparation, while others offer a range of services, including bookkeeping, payroll management, and financial planning. If you’re a small business owner, you want to find an accountant who can handle your specific needs.
For instance, if you want help with your business’s ongoing financial health and not just tax season, look for an accountant who offers year-round support. Ask potential candidates about their service offerings and make sure they match what you’re looking for. If the accountant can’t meet all your requirements, see if they can refer you to someone who can.
What are Your Fees?
Small business accountants charge fees in different ways. Some work on an hourly basis, while others may offer a flat rate for specific services. It’s a good idea to ask about pricing early in the interview process to make sure the accountant fits within your budget. If you’re looking for ongoing help, see if the accountant offers any packages or discounts for long-term clients. Be upfront about your budget and ask if there’s any way to reduce fees.
What Certifications Do You Have?
The CPA designation is the most recognized certification in the accounting world. CPAs have gone through extensive training and have passed a rigorous exam. While you don’t necessarily need a CPA to handle your small business’s accounting needs, it’s a good idea to find out what certifications your potential accountant has. If you’re looking for someone to handle complex financials or tax issues, a CPA may be your best bet.
How Long Have You Been in Business?
Experience matters when it comes to small business accounting. Find out how long your potential accountant has been in business and how long they’ve been practicing. You’ll also want to know if they have experience working with businesses similar to yours. Ask for references and don’t be afraid to contact them to get a better understanding of what it’s like to work with the accountant.
Who Will Handle My Tax Work?
If you’re interviewing a small accounting firm, be sure to ask who will be handling your tax work. In some cases, it may be a junior accountant or someone who isn’t part of the interview process. You want to know this ahead of time so that you can feel comfortable with the person who will be managing your finances.
What are the Common Issues in My Industry?
A quality small business accountant will know the common financial and tax issues that affect your industry. They should be able to tell you about these issues and how they can help you avoid or mitigate them. This is a great question to ask during the interview process to get a sense of the accountant’s knowledge of your niche.
How Do I Contact You for Questions?
Clear communication is vital when working with a small business accountant. Ask about their availability and preferred method of contact. Some accountants may only offer email support, while others may be open to phone calls or even in-person meetings. Find out if there’s any limit to the number of questions you can ask and if you’ll be charged for ongoing support.
What Is Your Tax Planning Style?
Your small business accountant should be able to tailor their tax planning approach to fit your goals. For instance, if you’re aggressive about business deductions, your accountant should help you find every possible write-off. On the other hand, if you prefer to play it safe, your accountant should help you minimize risk. Ask about their tax planning style and how they’ll help you achieve your goals.
Will You Help Outside of Tax Season?
Tax season isn’t the only time you’ll need an accountant. Ask your potential candidate if they’ll be available to help you during the rest of the year. If you’re looking for ongoing support, make sure the accountant is willing to provide it. You may also want to ask about their experience with business growth strategies and how they can help you improve your financial standing.
7 Benefits Of Partnering With The Right Accountant For Your Small Business
While it might feel like an added expense at first, the advantages of hiring an accountant far outweigh the costs; here are just some ways they can make a difference.
1. Accurate Financial Record Keeping
One of an accountant’s most important roles is keeping financial records accurate and up to date. For small business owners, juggling this with daily operations can lead to costly errors or oversights. A professional accountant ensures your records comply with all regulatory requirements, keeping you aligned with financial compliance and helping you avoid tax penalties.
Realizing too late that you missed a filing deadline or made a critical mistake in your records, no business owner wants to face these nightmare scenarios. Accountants bring their expertise to the table, ensuring your records are accurate, audit-ready, and error-free. This doesn’t just prevent potential mistakes and fines, it also makes financial reporting and decision-making a breeze.
2. Time Savings And Efficiency
Running a small business means wearing many hats, but accounting doesn’t have to be one of them.
With a professional accountant, you can hand over time-consuming tasks like:
Payroll
Bookkeeping
Invoice management
Receivables tracking
Outsourcing these routine accounting processes doesn’t just free up your schedule. It also reduces stress. Managing your business’s day-to-day operations while dealing with complex financial data can lead to errors and inefficiencies. An accountant handling your small business's cash flow management means fewer headaches and better decision-making.
Maximising ROI Through Strategic Financial Guidance
This is one reason why the accountant ROI for small businesses can be relatively high; with an expert available, you can boost efficiency and spend more time on strategy.
Professional guidance on your finances means you can make quicker, smarter decisions when it matters most. From identifying opportunities for growth to solving cash flow challenges, accountants provide the clarity and confidence you need to keep your business moving forward.
3. Expertise And Specialized Knowledge
No small business owner should have to become an expert in everything, and that’s where an accountant shines. The accountant’s role in small businesses is to bring specialized knowledge that allows them to focus on management, strategy, and operations while they handle the financial details.
This includes:
Up-to-date expertise: Accountants stay current on changes in financial regulations, tax laws, and industry best practices, ensuring your business stays compliant.
Tailored guidance: Whether navigating industry-specific challenges or aligning with your financial goals, accountants provide advice that fits your business’s unique needs. This includes everything from strategic tax planning to managing financial statements.
Additional services: Beyond compliance, accountants can offer consulting services like:
Advising on securing funding and preparing a compelling business plan
Crafting investment strategies
Assisting with long-term goals like succession planning
With their expertise, you’ll have a clear view of your company’s financial health, empowering you to make informed decisions and plan confidently for the future. By leveraging professional accountant benefits, you’re not just hiring help. You’re gaining a partner invested in your success.
4. Enhanced Financial Reporting And Analysis
Accountants go beyond balancing the books. They provide in-depth financial reports that give you a clear view of your business’s performance. Financial reporting isn’t just listing numbers on a page; it’s a task and tool that helps you make informed decisions.
Financial reports provide:
Clarity on performance: Monthly and quarterly reports help you track profitability, manage expenses, and identify growth opportunities.
Real-time insights: With up-to-date financial data, you’ll always have a snapshot of your business’s health, enabling quicker and more confident decisions.
Cost-saving opportunities: Accountants can highlight areas where you might be overspending and suggest ways to cut costs without compromising quality.
Regular financial health checks ensure that you’re meeting your goals and staying ahead of potential challenges. This proactive approach to economic analysis enables your business to maintain its competitive edge in a challenging landscape.
5. Strategic Financial Planning And Budgeting
Strategic financial planning isn’t just about numbers; it’s about turning your business’s data into actionable insights.
This is where an accountant’s expertise can make the most significant impact:
Data-driven insights: Accountants analyze cash flow trends and provide detailed budget management to keep your finances on track.
Realistic goal-setting: They help set achievable financial goals based on your business’s current performance, ensuring your plans are grounded in reality.
Projections and tools: Using advanced tools, accountants prepare you for seasonal fluctuations and unexpected costs by creating realistic financial projections.
Long-term growth strategies: They align your budgeting with your overall business objectives, ensuring every dollar is working toward sustainable success.
Having a professional handle these tasks saves time and provides clarity and confidence in your financial decisions. With their help, you can approach the future with an actionable and adaptable plan.
6. Tax Preparation, Planning, And Compliance
Dealing with taxes can be one of the most stressful aspects of running a business, but having an accountant on your side makes all the difference. Tax laws are complex, and even minor mistakes can result in penalties or missed opportunities for savings.
Accountants bring their expertise to ensure that your filings are accurate, compliant, and optimized for tax savings with accountant oversight, including:
Accurate filings: Accountants meticulously prepare your returns to avoid errors and ensure compliance with all regulations.
Maximizing deductions: With professional oversight, you can rest assured that no eligible tax deductions go unclaimed.
Year-round strategy: Instead of waiting until tax season, accountants provide ongoing support to help you plan, saving you money and reducing stress when deadlines roll around.
Risk reduction: By managing your tax planning and compliance, accountants minimize your exposure to audits and penalties, providing peace of mind.
A year-round tax strategy saves money, helps you avoid regulatory changes, and prepares your business for long-term success.
7. Risk Management And Fraud Prevention
Financial risks are unavoidable in running a business, but an accountant can help you manage and reduce them effectively by:
Identifying risks: Accountants are skilled at spotting red flags in your financial records, helping you avoid potential issues before they escalate.
Fraud prevention: By establishing robust internal controls, accountants can safeguard their business against unauthorized transactions and financial mismanagement.
Reducing errors: Professional oversight minimizes the risk of mistakes that could lead to costly penalties or reputational harm.
Impartial oversight: Having an accountant provides objective insights and safeguards the integrity of your business’s finances.
With an accountant’s expertise, you can feel confident knowing your business is protected and positioned for sustainable success.
Related Reading
Best Outsourced Bookkeeping Services
Hiring a Bookkeeper for a Small Business
Best Bookkeeping Services
Bookkeeping Services for Startups
Organizing Small Business Bookkeeping
Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)
Haven is an accounting firm that specializes in helping startups and small businesses manage their financials. The team at Haven knows what it’s like to be a startup because they have been there themselves. They understand the unique challenges that growing businesses face, and they can help you navigate your financial runway so you can focus on taking your business to the next level.
With over 400 startups on their client roster, Haven has saved millions in tax credits, assisted numerous companies with administrative tasks, and ensured that no filing deadlines were missed. Their dedicated team of CPAs offers 24/7 Slack support to help you with your bookkeeping and accounting needs.