• New Wave Accountants

What to Consider When Hiring an Accountant for Your Business - Our Guide

Updated: Dec 12, 2019

Businesses of all types and scale will need to deal with numbers to keep their operations running as smoothly as possible. This includes keeping track of every transaction—sales, expenses, salary payments—to maintain stable and financially healthy operations.

With that in mind, accountants are an essential function in business as bare the responsibility of summarizing, interpreting, and communicating financial transactions that are classified in the ledger account. On that note, it is the accountant's responsibility to make reports on the financial data of a business to help companies make informed business decisions.

Additionally, accounting is all about gauging an organisation's financial situation, including detecting and preventing theft, embezzlement, and fraud. Accountants also have the power to make critical business decisions and communicate with authorities if needed.

Seeing as accountants play a highly integral role in a business, it's crucial to hire one that has the expertise your company needs. To that end, we've got you covered with our guide on how to find the best one for your company.

Tip #1: Look for Certifications or Memberships

An accountant is part of the key to running a successful business, which is why it's vital to hire someone who has up-to-date skills and knowledge. Proof of this professionalism and industry-standard capabilities can be recognised through certifications, so be sure to request for it when profiling your prospective list of accountants.

One of the best in the line is Certified Public Accountants (CPA). They are accountants that have passed the rigorous CPA exam and have proven skills that meet the state's standard requirements to earn their license.

Tip #2: Ensure the Prospective Accountant Has Knowledge and Experience with Your Line of Business

Accounting practices vary depending on the type of industry, so it's crucial to hire someone who can identify with your line of work. For instance, the relevance of a candidate's experience will determine the effectiveness of their skills with your field of expertise. In that regard, these questions below may help you assess whether or not your prospect will fit the bill for your company's needs:

  • What is your previous accounting experience?

  • What were your primary responsibilities?

  • What kinds of financial reports did you prepare?

  • What types of accounting systems did you use?

Tip #3: Review an Accountant's Level of Expertise

While the skills needed are dependent on the industry, the right bookkeeper should have a solid grip on the following:

  • Recording expenses

  • Preparing company-wide financial statements

  • Analyzing the costs of operations

  • Completing income tax returns

  • Creating financial reports to help business owners make informed financial decisions

  • Reconciling bank transactions

  • Raising sales invoices and following up on debtors

  • Ensuring correct tax treatment and coding of transactions

  • Lodging sales tax, GST, or VAT

  • Preparing reports on Profit and Loss or Balance Sheet

  • Interpreting reports

  • Making a budget

  • Preparing a cash-flow forecast

  • Entering supplier bills

  • Handling payrolls

To that end, a good accountant can help a business keep daily records, but a great one will know how to provide solutions and make order out of chaos.

If you’re looking for an accountant or bookkeeper on the gold coast, get in touch with us today for a free consultation.

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