4 things to consider when choosing a small business accounting firm
Finding your first small business accounting firm or switching from an existing firm can be a daunting process, but it doesn’t have to be. You may not have a very strong background in accounting, so it may feel hard to know what is important. Relationships between small businesses and a suitably matched accounting firm can continue for decades so it makes sense to learn about what to look for in a firm.
1. Do you want help once a year or need help all year?
Figure out what you really want from your accountant. Some accounting firms do a wonderful job of assisting with filing tax returns but might not do much during the year in terms of planning. One potential drawback of this approach is that you are meeting with an accountant in February or March and there is not much that can be done about tax planning after the year is over. If managing tax liabilities and having good financial data all year sounds appealing, you will want to find a firm with accounting, tax, and payroll under the same roof. The firm that is involved in the monthly accounting all year will be in a far better position to help with tax planning and providing general business advice.
2. Do the accounting firm owners or employees have the necessary certifications?
Being certified does not automatically equate with a better service. However, if you need someone to talk with the IRS on your behalf, you need someone with the right certifications. There are three certifications that will allow a practitioner to represent you in front of the IRS – Certified Public Accountant (CPA), Enrolled Agent (EA), or Attorney. While attorneys certainly get involved in tax matters, our focus is on small business accounting so will focus on the CPA and EA designations.
Generally speaking, CPA’s are required to have 4 or 5 years of college level credit, 1 or 2 years of experience working under the supervision of another CPA. On top of that, a rigorous four-part exam must be passed within a certain time frame. In the first quarter of 2023, pass rates by section ranged from a low of 42% to a high of 59%. No easy task. Enrolled agents can earn the privilege of representing taxpayers by passing a three-part test administered by the IRS covering individual and business tax returns or through experience as an IRS employee.
You might find the best accountant in the world that has no certifications. But if the IRS comes knocking, the lack of certification will require you to find someone else to handle the issue.
3. Local or Virtual
Like other industries, technology has changed the accounting industry. With zoom meetings and data sharing portals, it is easy to work with clients wherever they are located as long as both parties have an internet connection. Financials can be shared through portals and returns can be electronically signed. While technology is helpful, some business owners have a strong preference for working face to face. Our firm works with clients across the US, but most of our clients are located in the Greenville SC area.
4. Personality Fit
While accountants may be looked at as “numbers” people, the reality is that this is a people business. While they need to be good at what they do, finding someone that you can relate to makes everything easier. A discovery call is your chance to get a feel for the firm and understand how you can work together.
If you think that we might be a good fit for you, please feel free to schedule that Discovery call. There is never a cost for this meeting, and we might be just the firm for you!