Every penny counts if you are a business owner, so if you do not know the financial aspect of your business every month, there is a big chance that your business will be out at year’s end. And while you are using a Do-It-Yourself software to do your accounting tasks, and help monitor the costs, the advantages of hiring an NYC accounting firm to extend far beyond counting numbers.
Potentially, these firms can be your business’ financial partner in the long run, with not only knowledge of how you can finance your next company vehicle, for example, but also the way you can finance your kid’s college education. Before you decide on the firm you will hire, you need to make sure that you understand the essential areas of expertise in general accounting practices.
Business advisory services
Because accountants need to be knowledgeable when it comes to your tax situation, business environment, as well as your financial statements, it makes a lot of sense to ask the firm to pull the pieces back together and help the company come up with an excellent personal financial and business plan.
Firms can offer a lot of advice, from insurance, to expand your business (how will an additional capacity to affect your operating costs?). Accounting companies can bring in a new level of awareness, only under the firm’s perspective.
Recordkeeping and accounting
These are usually the most basic of all accounting disciplines. While it makes a lot of sense for owners to manage their everyday financial records, firms can help you set up accounting systems and bookkeeping, and show you how to use these helpful tools.
A good accounting system will allow you to evaluate your business’ profitability as well as modify the prices. It will also let the owners monitor their expenses, spot all the trends happening around the market, track company budget and minimize accounting fees that are required to produce tax returns and financial statements.
To find out more about recordkeeping, you can visit https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping for more information.
Accounting firms that provide help with issues that are related to taxes usually can do in two areas: tax planning and tax compliance. Planning refers to minimizing the company’s tax burden. Observance or compliance refers to obedience to tax laws.
This type of service is usually required by a lot of banks as one of the conditions when a business owner asks for a loan. There are levels when it comes to auditing. From merely preparing the company’s financial statements to actual auditing, where the firm or other third-party company provides assurance, the business’ financial data is accurate.
Finding and choosing the right accounting firm
The most logical way to find a firm that suits you best is to get a referral from lawyers, bankers or business colleagues. You can also check out the Society of CPAs in your area, which can also make a good referral. While these professionals usually work for big companies, CPA work for all types of businesses, startups, small or big businesses.
Do not underestimate the importance of CPAs. The title is only given to people who passed a rigorous two-day, national standardized examination. A lot of states in the country require CPA candidates to have at least a college degree. Some states also require candidates to have post-graduate jobs.
Click here to know more about certified public accountant.
Once you find the best possible candidates, it is imperative to know how much of the accounting work your business will do, as well as, how much will the firm do. Services can be categorized into three: recording all the transactions, assembling the transactions and generating financial statements and returns.
Although recording and assembling transactions only require lower skill levels compared to making profits and financial statements, a lot of firms will charge clients the same hourly rate for all the categories. That is why it is imperative to know exactly what kind of work you want the firm to handle.
The next thing you need to do is to interview the applicants. For every applicant, plan at least two meetings before you make your decision. One session needs to be at your office. The other meeting needs to be at their site. During these interviews, your goal is to find out the services they are offering, the culture and personality of the firm and how much they are asking for their services.