Having reliable accounting services at your side is an excellent way to track your business’s growth.
However, not all business owners know that companies will vary depending on their company’s needs. There are several variables that you must consider when choosing the right accounting service.
Hiring the inappropriate Certified Public Accountant (CPA) for your situation can be detrimental to your business.
Choosing the right accounting professional
It’s important to know what kind of CPA you’re looking for so that you can hire the right person for your company’s needs.
Like any profession, CPAs have different specialties in the accounting scene. Although most of them have a general understanding of an accountant’s duties, some have a better grasp of performing some business tasks than others.
In this article, we will discuss five accounting professionals that you might need for your business.
Bookkeeping is a common service that businesses need since bookkeepers handle the recording and archiving of the company’s financial information. They are tech-savvy individuals that manage the financial monitoring of your accounts payable and receivables to ensure that your business maintains a positive cash flow.
2. Tax accountants
Understandably, many people confuse bookkeepers with accountants since they have similar, and sometimes overlapping tasks. Unlike CPAs, bookkeepers don’t require a certification to work and apply to businesses. This is because they specialize in understanding the rules of the Internal Revenue Code, which requires formal testing and education. A tax accountant helps you develop specific tax solutions to ensure that you don’t miss out on taxation deadlines and commit violations on submitting your forms.
3. Management accountants
If you’re having difficulty planning your company’s financials, a management accountant can help you out. They’re experts at helping small businesses who don’t have a full understanding yet of how proper budgeting can impact their profitability in the long term.
Hiring a skilled CPA as a management accountant will reduce your workload on formulating budget plans, reviews, and other financial responsibilities. Although management accounting can be costly to keep, they’re perfect for businesses that are still adjusting to the learning curves of understanding the right budgeting practices.
4. Accounting auditors
Sometimes, you need an outsider’s perspective to check if your financials are on the right track. Auditing is necessary for financial verification to review and assess a company’s financial records. Hiring an auditor is situational since you don’t need them all year round. Nevertheless, they’re a professional and neutral third party that can help analyze your quarterly and year-end reports for any potential errors.
5. Forensic accountants
A forensic accountant performs cross-references to find discrepancies in potential breaches of contract or fraudulent work practices. They work with sensitive company data, checking if there are any violations of legally binding contracts and taxation laws and policies.
Like accounting auditors, hiring forensic accountants is on a case-to-case basis. Typically, you’ll hire them if you suspect that a partner company is performing actions that breach your contract. You must first conduct your own preliminary investigation to collate all relevant data before you present it to your forensic accountant.
Figuring out what type of CPA you need will depend on your company’s current trajectory. This means that you need to understand your business’s positioning within your 5-year plan.
If you don’t have a 5-year plan yet, you may want to consider setting one up now. Doing so will help you see if your business meets its quarterly and yearly goals as a service provider.
Not all business owners know how to start with their 5-year plans, especially if they’re a small or midsize enterprise. We specialize in accounting services that fit a small business’s needs.
If you need tax and accounting services in Indianapolis, contact us to find the right accounting solutions for your company!