A good CPA or accountant is hard to find. When it comes to entrusting your business’ important financial information to someone else, you ought to have high expectations. After all, the CPA or accountant you choose to manage your business will have access to all of your financial records and will provide you with insight into your financial decisions. This person should be chosen carefully.
While many business owners attempt to “handle it all themselves”, the reality is most business owners cannot manage their businesses successfully and handle the financial side of things at the same time. As a result, they look to outside help (usually in the form of a CPA or accountant). While we cannot pick your CPA for you, we can offer you some insightful tips to help guide you to the right CPA for your business or organization. We believe the following traits characterize a good CPA or accountant:
- They must have a basic understanding of your industry.
This one should be a given. Your CPA or accountant needs to be familiar with your business’ industry in order to give you the advice you need and manage your accounts properly. While they do not need to be an expert, they do need to have a clear understanding of what sets your industry apart (particularly in the area of accounting). It’s possible to work with an accountant who is unfamiliar with your industry; however, it will be easier on both you and them if you choose an accountant who knows a little about your particular industry. Each industry has different terms and insider information that can only be learned on the job, so be sure to look for someone who knows the terminology. - They must be attentive to details.
An accountant or CPA needs to be detail-oriented in order to properly manage your finances. They must be aware of every tiny detail and change that occurs within your organization. You won’t have time to update your accountant on every single financial detail; that is something he or she will have to do for themselves. Make sure that the accountant you choose can take charge of your business’ finances and take care of the little things when it comes to your basic financial situation. - Good communication skills are a necessity.
You will be communicating with your CPA frequently, so make sure that you feel comfortable with your CPA or accountant. If he or she does not understand something, they have to be willing to ask for clarification or help. Communication is absolutely essential to the success of your accountant-business relationship, so make sure that your CPA possesses the skills they need to communicate effectively. - They need to know how to work a computer.
In this day and age, this may seem like a ridiculous request; however, there are many accountants and CPAs out there who have limited knowledge when it comes to computers and various software programs. In order to get quality reports, you need to have a computerized accounting system in place. Make sure that your CPA or accountant is familiar with the system and knows the basic workings of Word, Excel, email and the Internet. - They must always be striving to learn something new.
The accounting field is always changing. New regulations are passed, new laws are instated, and new industries emerge. Your accountant or CPA should be committed to learning more about the laws and regulations of the field. Some CPAs will acquire new skills through attending classes, while others will join groups to help them learn new tips and tools. Whatever they choose, make sure that they are committed to furthering their knowledge about accounting and preparing your business for success. - They need to understand the big picture.
A good accountant or CPA will not focus only on the accounting; they will take a look at the business as a whole and offer suggestions for improvement. A good accountant understands that the financial aspect of the business is simply one part of a whole, and he or she understands that one financial error can affect the entire business.Before hiring an accountant or CPA, give them an overview of your business and what you do. In order to accomplish the work you need, your accountant will need to understand the work you do. By providing them with an overview of your business, you are helping your accountant keep the big picture in mind as they focus on the little things. - They must be willing to follow through.
You want someone who will be reliable and who will finish projects through to completion. As you are interviewing accountants and CPAs, check their references and current clients. Are they happy with the accountant’s work? Does the CPA follow through on all of their projects? How does he or she respond in the case of a project delay? Find out how reliable they are before you hire them, or you could be faced with many incomplete (or late) projects. - They must understand how to do proper job costing.
Your accountant or CPA must understand how to do job costing properly. This includes tracking all costs by item and job detail. This will help you gain a better understanding of how much your projects are costing you, so you must depend upon their information to be accurate. - They must be willing to commit to your business.
This is the most important trait in a good accountant or CPA. He or she must be able to fully commit to your business. Without his or her full commitment, you might as well be doing the job yourself. You want someone who is committed to your vision and will make your business a priority. Don’t be squeezed into their schedule. If you are considering hiring an accountant who cannot meet the commitment level you desire, look elsewhere. You need to be sure that your accountant is doing everything possible to ensure the success of your business.
As you can see, there are certain characteristics that make up a good CPA or accountant. If you have any traits to add to the list, please leave your comments below. If you are looking for a CPA or accountant to take care of your business, contact us today. Our Beck and Company CPAs provide many services to help your business achieve the success you desire.
For a look at how a Beck and Company CPA can help your business, read our CPA client stories. Discover more tips for choosing the right CPA or accountant.