By Preston Lee
You have finally decided to outsource your accounting work to a professional team. For small businesses, that’s often the most practical decision, particularly when there is an evident lack of in-house expertise. As a founder, you already have multiple priorities to deal with, and the chances are high that you are spread thing juggling many roles. Finding the right small business accountant in Roseville, California, can make all the difference, and in this post, we have shared the mistakes you need to avoid.
Mistake #1 – Not looking for comprehensive solutions
Small businesses don’t have vast resources, which means they cannot afford to hire five different services. Many business owners just assume that they can hire an accountant for now and manage their regular work, only to realize the need for expertise for tax planning and filing tasks. Avoid that trap! Instead, choose a firm that can do most things you need, such as
- Preparing financial reports every month, quarter, and year
- Bank reconciliation
- Cash flow statements to track expenses and income
- Tax planning strategies
- Tax preparation and filing
- Payroll services
- Bookkeeping and implementing an accounting system
Mistake #2 – Choosing the cheapest service
If an accounting firm is doing all of the above things, they are likely to charge more than others. When comparing local services in Roseville, focus on what’s included rather than the final estimate. You don’t want to go for a discounted service to deal with inaccuracies and lack of support later. While it is pertinent to ensure the quote fits your budget, avoid services that are offering cheap prices by cutting corners.
Mistake #3 – Not understanding the qualifications
A Certified Public Accountant (CPA) is always better than someone with a basic accounting certificate. While accountants do understand accounting and can handle tasks like bookkeeping and preparing financial statements, a CPA is way more versatile and has completed the rigorous licensing process. A bookkeeper, on the other hand, is great at recording and tracking transactions. Know the qualifications of the team you are hiring, and ask as many questions as required to know them better.
Mistake #4 – Not defining what you need beforehand
Before you even shortlist accounting services, make sure to underline what you need. Many small businesses fail to note down or define what they need, and as a result, expectations are often mismatched. What do you want the CPA to do? Should they just handle the tax filing work? Should they be involved in your business’s day-to-day affairs? Do you need them for payroll? Once you know the requirements, sorting services is a lot easier.
Mistake #5 – Not considering a scalable service
While yours may be a small company for now, things are likely to change in the future. As you grow and expand your business, you will need an accounting team that can navigate the complexities and help you with compliance, evolving tax norms, and other tasks. Make sure to ask the firm whether they can scale as your operations get complex.
Mistake #6 – Not considering communication on priority
Many small businesses fail to discuss how they will communicate with a newly hired accounting service, eventually ending up in situations where they need help but are unable to get a response. If you are hiring a local firm, ensure they are available, responsive, and communicative. Ask for a point of contact, how you can connect with them, and how often they will collaborate with your team from time to time.
As long as you focus on core aspects and requirements, hiring an accountant in Roseville doesn’t have to be a complicated journey.
