4 Important Factors To Consider When Choosing An Accountant

Accountants are crucial cogs in the business world. And as the nature, function, and operation of trade and finance continues to evolve, so does the role of these professional financial consultants. Nowadays accountants do so much more than just calculating and balancing business records. Their job portfolio has expanded to include key consultation services touching on crucial issues like management, risk management, profit enhancement strategies, and even technological related recommendations. This means that hiring a qualified accountant is much more demanding than it was a few decades ago.

 

Essentially, the most befitting consultant or professional in any business engagement depends on specific business needs and preferences as dictated by your individual business operations. However, on a more basic note, there are 3 or 4 fundamental factors you should always bear in mind when recruiting an accountant for any kind of professional assistance. Check out the following summary of these vital considerations.

 

Qualifications And Licensing

 

The first and most crucial vetting factor is the academic certifications and licensing fulfillments of the prospective candidate. Whether you are hiring a whole firm or an individual practitioner, you need to check and verify their academic standing. There are two main certifications in this regard: Certified Public Accountants (CPAs) and Certified Management Accountants (CMAs). The former are armed with an undergraduate degree and are academically and experientially qualified to practice at the state level. CMAs have the same training and certifications plus specialized training in company management. Both levels of qualification require constant learning to keep up-to-date with industry changes and hence remain certified or licensed. CPAs are certified and licensed by the American Institute of Certified Public Accountants (AICPA) while CMAs are certified by the Institute of Management Accountants (IMA).

There are many other specialized qualifications and accreditations to choose from as well, such as Personal Financial Specialist (PFS), Certified Valuation Analyst (CVA), and Accredited in Business Valuation (ABV).  Be sure to find out what each certification brings to the table.

 

Specialization And Experience

 

Another crucial assessment factor is the accountant’s industry experience and specialty. It’s very important that you hire someone who is well versed in your industry and conversant with your specific service requirements. You must be able to determine whether the accountant offers the kind of services that you are seeking; from basic accounting and auditing to specialized business consultation services like financial analysis or strategic management plans. This means that you essentially be doing a background check to review the candidate’s previous assignments.

Cost/Service Charges

 

Another vital hiring determinant is the accountant’s billing rate or fee. Professional accountants usually charge either fixed service charges or by the hour. You must compare the quoted fee with your set budget to see whether you can afford the rates or to opt for a cheaper alternative. Remember that the overall bill should always be reasonably proportional to the quantity and complexity of the task or assignment at hand. At the end of the day, you should get what you pay for.

 

Availability

 

Finally you have to consider the accessibility of the accountant. This is usually dependent on the size of the firm or practice. More often than not, large accounting companies sideline small clients in favor of larger big-spending corporations. You might even find yourself in the hands of a small outsourced firm or being allocated an under qualified junior accountant instead of an experienced professional. It’s also quite hard to get hold of the accountant in such large practices due to busy work schedules. Referrals and reference checks during vetting will help you avoid performance shortfalls.