Accountant or CPA’s are a wonderful breed. They are multi talented, can leap tall buildings in a single bound and I am reliably informed, are even known to have been seen wearing their underpants over their  trousers in public! (And you thought only Superman did that!)

But seriously folks! Your accountant or CPA is able to provide a range of specialist services from basic book keeping right through to consultancy and advisory services.

They can save you time and they can save you money. They can help you develop your business and they can help you buy and sell it.

But what do they actually do, I hear you ask?

Well if you run any business just about anywhere in the world these days, you will have certain regulatory accounting requirements to meet.

Usually you are obliged to:

• Keep certain records, for example employment records if you have employees. This will involve regular bookkeeping work.
• Submit an annual tax return to the authorities. This will involve the preparation of financial statements.
• Appoint an auditor to carry out an annual audit of your accounts.
• If you’re a limited company or incorporation you also have to file accounts with the regulatory body.

In addition to basic accounting functions, many accountants offer what are now known as added-value services. These include:

• Start-up business advice
• Management-systems advice
• Consultancy services

You could of course decide to save the money and do all of this yourself. However, in addition to the cost factor there is also the time factor (just how much spare time do you really have to cover these tasks?) and you have to also ask whether you are capable of handling these tasks in a competent and professional manner.

Weighing up these factors, ask yourself:

• What does my business have the skills to do in-house?
• What would be more efficiently and effectively outsourced to an accountant?
• What must, by law, be done by a qualified person?

Getting a happy balance on what you cover and what you get in professional help to do can be the secret to getting the best out of your accountant.

Follow this check list and you should be on your way to achieving the ideal situation:

1.  Make a list of all the accounting tasks that will have to be covered relevant to your particular business. If you are not sure what they are, find out.

2.  Work out what you have the knowledge to cover yourself.

3.  Work out what you have the available time to cover yourself.

4.  Separate the list that you will need covered by an accountant or CPA.

5.  Sit down with at least three prospective accountant or CPA’s and discuss the lists. Listen to what they have to say. Ask them to explain their observations and judge how you feel about their answers. Do you trust their advice is given to look after your best interests or line their pockets?

6.  Get a quote to cover their tasks.

Now you have all the information that you need to make an informed decision. So now decide just exactly what it is that you want your accountant or CPA to do for you.

This article was written by Brian K Fitzgibbon CPA.

Brian is an experienced accountant and small business consultant. He runs his own business, lectures extensively on small business topics and has checked out and valued many hundreds of small businesses for buyers.

Brian is also the author of the highly acclaimed and invaluable
"How To Value A Business And Buy It Without Fear"
A do-it-yourself guide for first-time and experienced buyers alike.

To download a FREE Chapter from Brian's book please follow this link: "HowToValueBusiness.com"

May 27th, 2009 | Tags: accountant, buy a business, buying a business tips, cpa, what can my accountant do for me, working with an accountant or CPA | Category: articles | Subscribe to comments | Leave a comment | Trackback URL  |