What to Ask Before Hiring an Accountant

An important tenet of small business ownership is surrounding yourself with knowledgeable advisors. A good accountant may be the most important of this cadre. Because cash is king in any small business, your accountant is the employee most qualified to assess the lifeblood of your enterprise.

Here are questions you should ask before contracting with an accountant:

1. How long has the accountant been in business and what credentials does he have? With ever-changing tax laws and complex accounting rules, a minimum of five years is a good benchmark.

2. Is the accountant familiar with your type of business? Businesses such as retail usually have specialized rules and procedures. Ask if you can contact any clients in a similar business for a recommendation.

3. Is the accountant familiar with your automated system? Are you using a software program compatible with the accountant’s computer and knowledge?

4. How does the accountant keep track of changes in clients’ financial circumstances? Services should include regularly scheduled “check-ups” to avoid surprises. For example, does the accountant check on the aging of accounts receivable?

5. Perhaps one of the most important questions is, “What will I get for my money?” Ask up front what fees are charged.

6. Will you be charged for every phone call and for traveling time? Does the accountant “guarantee” his work and does he have a fiduciary bond?

Red flag: Bail out on anyone who promises unrealistic returns or tries to sell you on “get rich” schemes. Don’t accept that the accountant can “beat the system” and save you money on taxes. You don’t want to end up in tax court.

Ask if the accountant is a veteran-owned business – you may have common ground and develop a better relationship as fellow veterans.

Good luck!  

Written by Donn Nemchick

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