ASK SCORE®
CHOOSE ACCOUNTING SERVICES CAREFULLY
What to delegate and why?
As you launch or expand a business, keeping track of the money, preparing tax returns and performing other financial tasks can quickly become a burden. If you need more time to do other things, it might make sense to turn over tax, accounting and other financial chores to outside specialists.
Choosing the right type of tax, accounting, bookkeeping or other financial help is an important decision. An outside accountant can be one of your most trusted business advisors and a key to your success. Although many business owners work with big national firms, most prefer to work with small independent firms or solo accounting professionals.
Accounting versus bookkeeping?
Accounting services differ from bookkeeping services, however. An accounting firm prepares financial statements and tax returns based on the numbers that you give them via your own in-house books. Bookkeeping services, if offered, will be extra. If you plan to hire your own bookkeeper, make sure the person you choose is qualified. One way is to use the “Bookkeepers Hiring Test” available free from the American Institute of Professional Bookkeepers at their Web site, www.aipb.org.
Finding an Accountant
Before selecting a certified public accountant (CPA) or other financial pro, list the services you think you need, such as tax preparation, financial reports, balance sheets, invoicing, payroll services, general bookkeeping or someone to set up your books. Some firms may handle it all, or you may need to split the tasks. CPA Directory is a huge online listing of CPAs nationwide and can help you find an accountant in your area. The Web site also offers helpful advice on hiring and working effectively with a CPA. Visit www.cpadirectory.com. You can always ask for help from your local SCORE office as well. They may have a list of reputable local agencies.
And don’t forget about Enrolled Agents. EAs are licensed by the Federal government to prepare tax returns. They have either worked for the IRS or have passed a rigorous IRS exam. They are savvy tax experts, but generally don’t have the degrees of CPAs and tend to charge less. Visit the National Association of Enrolled Agents Web site at www.naea.org.
How much does it cost? CPA or not?
Fees vary greatly among accountants, from $50 per hour to $300 or more. Some firms will provide a specified list of services for a flat monthly fee, and may provide less costly help for bookkeeping and other tasks that don’t require CPA-level training. If you are considering a larger accounting firm, find out which people you will be working with directly. Also try to match your general philosophy with a firm that is as conservative — or aggressive — as you are on tax matters.
Bottom line?
With free assistance from SCORE®, you may find solutions to accounting questions and help. We’re here to help you find it.
Call SCORE® for an appointment (319-362-6405, extension 2005) or drop in at our office at 2750 First Avenue NE, Cedar Rapids, Iowa, 52402. Our office hours are weekdays from 10 am to noon and from 1 pm to 3 pm or by appointment for other times. SCORE® can help you with your business questions. Our counseling services are free and confidential.
IF YOU WANT TO LEARN MORE, IT IS AS SIMPLE AS GOING TO: www.scorecr.org
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