As an entrepreneur, one of the best investments you can make is in the services of a professional accountant. A certified public accountant can help you save on taxes and avoid financial mistakes that free or inexpensive online accounting tools may not accomplish.
If you decide to invest in an accountant, it’s important to know what to ask them and when, to ensure that you’re getting the best for your business and your bottom line. We have provided you with eight of the most important questions to ask your new accountant.
This may sound like too basic of a question, but it firmly establishes a clear way of communication between you and your accountant from the start and is key to a beneficial partnership. Decide if you’ll connect through email, phone or Skype and if you’ll meet weekly, monthly or bimonthly. The frequency can depend on the size of your business, but it’s important to meet more regularly when you first start working together.
Tax season is the number-one reason small businesses hire an accountant, so be sure to thoroughly discuss tax credits and deductions, ways to maximize write-offs, and any other tax opportunities. To avoid a year-end rush, get the answers to all of your tax questions before the April 15 deadline.
An experienced accountant should be able to advise you on a range of factors that contribute to your bottom line. This could include, GAAP – generally accepted accounting principles – corporate and individual tax, retirement planning and financial planning. Your accountant should also be able to assist in decision making when it comes to understanding the financial implications of hiring employees, renting office space, renting a company car and much more.
To grow, you need to start with a financial model that is scalable. Asking your accountant to help you establish a plan that can be updated regularly can help you recognize future growth opportunities for your business.
Cash flow is one of the hardest and most tedious things to manage when it comes to business finances. Ask your accountant to help you establish a model for managing your cash flow so that your business is in a position to survive shortfalls, improve receivables, and manage payables.
A skilled accountant should be able to calculate your profit and loss sheet and determine your break-even point. This number is crucial to determining your profitability and how many hours are spent on a product along with how you spend your money.
An accountant should be able to help you understand the true value of your business and estimate a fair market value in excess of tangible assets. Understanding this number can help guide you when you’re ready to compete with other companies or maximize aspects of your own business that increase value.
Businesses in different industries come with various accounting specifications. Your accountant should be well versed in identifying opportunities specific to your industry in your area.
At Verdeja, De Armas & Trujillo, LLC, our team of Miami accountants is dedicated to providing personalized, financial guidance. We provide accurate and comprehensive financial statements as well as in-depth business analyses. Contact us today for a consultation!