YOU ALREADY KNOW IT’S TIME TO HIRE AN ACCOUNTANT FOR YOUR BUSINESS
Your business may grow, and you need help keeping track of your finances. Or you’re considering selling your business and know you need original bookkeeping books.
You may already have enough QuickBooks.
Fortunately, there are many good accountants out there. We’ll show you a few things to remember so you can identify the best accountants for your small business.
INDEPENDENT ACCOUNTANT, IN-OFFICE AND REMOTELY
Unless your business has 30 or more employees or annual sales over $1 million, you may not need to hire a full-time in-house accountant.
THIS LEAVES YOU WITH THREE OPTIONS:
Hire a freelancer, work with an accounting firm, or use a remote accounting solution. Each approach has its advantages and disadvantages, which will determine whether it is the best accounting solution for you. There are a lot of known bookkeeping services in Dubai.
HIRE A FREELANCER
A freelance accountant is the most logical choice if your finances are very simple and you’re okay with the accountant not being with you every business day. Price
On average, independent accountants charge lower rates than corporations because they have fewer operating expenses. As a result, a freelance accountant will charge an hourly or flat rate.
The amount of time an accountant spends on your business is determined by the number of transactions you handle each month, whether you have employees and the complexity of your industry. There are a lot of known bookkeeping services in Dubai.
Also, if you have any additional accounting to do for them, it will be an additional, one-off project that they will have to manage.
As you continue to work with them, a flat rate may become possible and provide a predictable bookkeeping cost-benefit in your monthly budget.
A local independent accountant can personally visit your business to collect and organize your documents.
If you have an office without paper with scanned documents, you may feel very comfortable hiring and working with an online freelancer. There are a lot of bookkeeping services in Dubai.
Either way, if you’re using specialized accounting software, you must ensure your bookkeepers use the same branding. They can import expenses remotely, delete a chat thread, or visit the office.
A freelancer may or may not have direct experience working with a CPA. Ask about this during the consultation to determine their ability to help the accountant file taxes on time.
One of the downsides of working with a freelancer alone is that they can get you hanging if they go on vacation or fall ill.
Also, accounting has its busy seasons. This usually happens at the end of the financial year, when a customer’s books need to be “closed” for the tax season. As a result, your accountant may not be as attentive to your business this time of year as usual.
Find out about these beforehand so there are no surprises throughout the year.
While your accountant is insured against errors and omissions, you or your company is liable in the event of an error. The effects of incorrect accounting can range from ill-informed business decisions to misreported taxes (and resulting IRS penalties) on your company.
That’s why finding an accountant who knows what they’re doing is so important. However, expertise is measured by more than just years of service or third-party certification. An e-commerce startup’s book is different from a dentist’s book;
Try to find an accountant who has worked with companies like yours and has experience in your field. For example, there are a lot of bookkeeping services in Dubai.
FIND A GOOD FREELANCER
There are a lot of places online to find a quality freelance accountant, but Upwork.com is a good place to start. Just find an accountant with high ratings from other clients like you.
WORKING WITH A COMPANY
An accounting firm uses several accountants under one roof. So if you’re worried about needing someone to rely on daily and are okay with paying a little extra, an accounting firm is a smart choice.
Hiring a firm will be more expensive than hiring a freelance accountant, as companies have higher administrative costs to cover. An accounting firm may charge an hourly or monthly fee. As with a freelance accountant, the amount you will be charged will depend on how long someone else does your books and whether you have any additional bookkeeping to complete.
Many companies are working remotely with their customers due to the growing popularity of cloud-based services. In this case, you must work yourself with and use the same accounting services as your business.
This may give a learning curve for you. But, on the other hand, it is a step towards building a paperless office.
Other options may be to have a company person come to your office to pick up the documents or bring them to the office yourself.
Since some accounting firms hire bookkeepers, they can handle your tax returns and other accounting tasks in-house. If not, they can recommend a local accountant. It’s worth asking questions when you first meet.
Since a company coordinates many employees’ work, you will likely experience a different service gap than you might expect from an independent accountant. In addition, you don’t have to worry about your accountant getting sick or going on vacation because other accountants in your company can pick up your books.
A business can employ many accountants, from beginners to experts. Therefore, it is important to ask if they guarantee a certain level of quality so that accuracy stays the same from person to person.
HOW TO FIND A GOOD COMPANY
Hiring a local accounting firm usually involves searching for companies in your area on Google, then researching which is best for your business. Usually, you can ask for references from clients like yours to get a true picture of working with this company.
CHOOSE A REMOTE ACCOUNTING SOLUTION
An online accounting solution that uses cloud-based software to connect you with a team of accountants who do the books for you (like Bench). It is similar to an accounting business, except it is more affordable because automation reduces most of the manual labor. It’s a great option for most small businesses that have a limited amount of cash transactions.
Remote bookkeeping services mostly charge a flat monthly fee based on the time it takes to complete your books each month. The number of accounts that you follow and the frequency of transactions can affect this.
Such as the Merchant processors, the left out loans, and the lines of credit may also be considered.
It often makes more sense for a small business with relatively simple finances than a freelancer or a company.
A remote accounting service could use a custom app, like Bench, that allows you to message your accountant directly. If you need help, you may need to contact them via email. Some remote accounting services may automatically enter your financial information, such as bank account transactions and credit. You may have the need to scan and submit physical receipts online.
As you shop around, you can find out if the remote service you’re considering can work with accountants. For example, Bench’s accountants work directly with their clients’ accountants to provide all the necessary tax return information. They can even connect you directly to the CPA to file your taxes.
Remote accounting services, like businesses, have many employees. This allows them to avoid the kinds of service vulnerabilities that can happen to an individual freelancer.
Any remote accounting service should be equipped to handle the increased workload that often occurs at the end of the year when a client’s books need to be “closed.”
If a remote accounting service is worth hiring, it must be able to guarantee a certain level of quality. For example, at Bench, all accountants receive in-house training, continuing accounting education, and several full-time employees who focus solely on quality and standards.
ARE CERTIFICATES IMPORTANT?
Accounting certification is completely optional, unlike accountants, where the designation of a CPA is required. But it is very important to understand what they represent.
CERTIFIED PUBLIC ACCOUNTANT
CPB is certified by the National Association of Certified Public Bookkeepers (NACPB) and is the most accessible.
To receive a CPB, an accountant must have one year or two thousand hours of on-site accounting experience, in which you agree to abide by the NACPB Code of Professional Conduct, and pass an exam.
A Certified Public Accountant who has received the American Institute of Professional Accountants (AIPB) seal of approval.
According to the AIPB, the purpose of the OC is to prepare accountants so that they can act as the “de facto chief financial officer” of a small business.
One must have two years of on-site accounting experience to receive a CB. They must also sign the AIPB Code of Ethics and pass the exam. The CB exam is longer and more thorough than the CPB exam.
Once you’ve hired the right accountant for your business, you’ve taken the first step toward a better understanding of how your business works and charting a path for future growth.