How to Choose a CPA for your Startup
Starting up a business can be a fulfilling yet challenging journey. It is true that this new business venture can bring either profits or losses, but keep in mind that there are so many things you might encounter along the way. When managing your business, you always need to be mindful of your resources and finances. You therefore need to consider hiring a Certified Public Accountant (CPA) to ensure that money matters are in control and you will avoid loses and financial problems in the future. If you are just starting your business, hiring an accountant is a smart and beneficial option. But the question is, how do you really choose the best CPA for your startup? What are the reasons for doing so?
Why Hire a CPA?
A Certified Public Accountant can save you time and can clear up errors and confusion that you often encounter when dealing with your taxes and finances. CPAs can also deliver many other benefits. They can act as trusted financial advisors. More than just a tax preparer, an accountant can be a mentor helping your business effectively manage cash flows, assess risks, plan for business growth and keep books in proper order. An accountant is also a vital component in any business startup. Many business owners--particularly startups and sole proprietors--find that their personal and business finances are linked closely. A great accountant can help in making sound judgments that are beneficial to both.
Tips When Choosing a CPA for your Startup
One of the best methods when choosing CPA for your startup is to obtain referrals from business colleagues, attorneys or bankers within a similar industry as your company. You need to be aware and mindful about the accountant’s title especially when checking out firms. This is a certification that is only awarded to professionals who have successfully passed the national standardized CPA exam. It is also suggested to take stock of the needs that your business would require prior to choosing a CPA for your startup. It is also essential to know the responsibilities of your accountant versus your own.
Another helpful tip when choosing a CPA is setting up interviews and meeting them at least twice before making the final decision. To be able to figure out the environment which both parties actively work in, it is a smart idea to set up one meeting at your own location and the other one at the accounting firm office.
There are also good questions to ask when you are in pursuit of finding the best CPA for your startup. These questions might include the following:
- Types of services offered
- Accountant’s personality
- Fees structure
Investing on services provided by a good CPA is a smart choice that will surely benefit your business in many ways. Investing the time to choose the best CPA for your business can help ensure you receive accurate service and reliable means of managing your finances. Building and running a startup is difficult, but you will increase your chances if you have the most qualified and competent CPA ready to back you up.