Do you need a certified accountant? Tracking your accounting and finances is a difficult but important task for all businesses. Tracking the information carefully will help you make smart business decisions and ensure you stay viable. Most businesses can’t do an effective job without some type of help, but the question is, is it enough to hire a bookkeeper or should you work with a certified accountant?
To help you answer this question lets first look at the basic differences between accountants and bookkeepers. Many people think these two terms can be used interchangeably but there are many differences. Including:
Bookkeepers:
• Usually begin as data-entry clerks
• Track your day-to-day financial records
• Retain transaction records and documentation
• Can be certified as a bookkeeper through a professional organization (such as the American Institute of Professional Bookkeepers)
Accountants:
• More of a reporting focus
• Analyzes businesses and processes
• Gives advice
• Can be certified through a professional organization (such as the American Institute of Certified Public Accountants)
Do you need a certified accountant or a bookkeeper?
The answer to this question depends on the size and nature of your business. In general hiring a bookkeeper is a good way to start out to ensure all your financial records and organized and up-to-date. Then, depending on your business’s size, you can also begin working with a certified accountant to provide financial advice.
We recommend starting with a bookkeeper because they are typically much less expensive, making them a solid resource for all businesses. Bookkeepers can also help you make sure that any major issues will be found quickly and brought to a certified accountant for assistance. Another great solution is to have periodic visits with your accountant (such as quarterly) to detect problems, keep your data accurate and to deter theft or fraud.
What are important qualities to consider?
Just as when you are hiring any other employee it is imperative that you check credentials and get references when looking for a good accountant or bookkeeper. In fact, asking for a referral from another business would be the best way you could find someone. In addition that that, you will also want to make sure that the professional can explain things to you in a way that is easy to understand. Technical jargon abounds in accounting and you need to make sure that you and your accounting pro are able to understand each other clearly. It is also important that you and your pro can have a good, open relationship in order to discuss difficult situations, so that any problems can be handled quickly.
When should you hire someone?
You will find that you need a certified accountant or bookkeeper when you first set up shop. While it might seem like another task on a growing to do list, you will be glad you did it in the long run. Having good bookkeeping systems and habits are a wonderful defense against unclear numbers and financial issues.