Before You Hire a Part-Time Accountant, Think About These 14 Important Factors

Are you thinking about hiring a part-time accountant? Well, before you make that decision, let’s go through some key things you should consider. Trust me, taking the time to think about these aspects will help you make the best choice for your needs.

First off, let’s talk about your budget. It’s crucial to determine how much you’re willing to spend on a part-time accountant. Consider your financial situation and find a balance that works for you.

Next, think about the qualifications and experience you require. Different accountants have different expertise, so it’s important to find someone who aligns with your specific needs and industry.

Now, let’s talk about availability. Consider how many hours per week you actually need an accountant and make sure you find someone who can accommodate your schedule.

Communication is key! It’s important to find an accountant who communicates effectively and is responsive to your questions and concerns. Nothing is more frustrating than waiting days for a simple reply!

Trust and confidentiality are crucial when it comes to handling your finances. Look for an accountant who is trustworthy and can guarantee the security of your sensitive information.

Compatibility matters too. You want an accountant who is easy to work with and understands your goals and challenges. A good rapport can make the relationship much more enjoyable and fruitful.

Flexibility is another important factor to consider. Things can change quickly in business, so having an accountant who can adapt to unexpected situations can be a game-changer.

Technology is advancing rapidly, so make sure your potential accountant is up to date with the latest accounting software and tools. This will ensure efficiency and accuracy in managing your finances.

Don’t forget to ask for references. Speaking to previous clients can give you valuable insights into an accountant’s work ethic and professionalism.

Consider their level of involvement. Some accountants simply handle the numbers, while others can provide more strategic advice and analysis. Think about what level of involvement you need for your business.

Do they have experience with tax regulations? Tax laws can be complex and constantly changing, so having an accountant who is knowledgeable in this area can save you a lot of headaches.

Think about the future. As your business grows, you may need more accounting support. It’s worth considering whether the accountant you choose can handle your expanding needs in the long run.

Payment terms are important too. Make sure you’re clear on the accountant’s fee structure and payment schedule to avoid any surprises down the line.

And finally, trust your gut. If something doesn’t feel right or you have any doubts, it’s important to listen to your instincts. Don’t rush into a decision you might regret later.

There you have it! By considering these 14 factors, you’ll be well-equipped to make an informed decision when hiring a part-time accountant. Good luck!

As an entrepreneur, you should be focused on running your business and not getting caught up in financial matters. But even a small mistake or oversight when it comes to your finances can have a big impact on your company. That’s why I went to the experts in the Young Entrepreneur Council (YEC) and asked them this question:

I’m thinking about hiring someone part-time to handle my company’s finances. What’s one thing I should do to make sure this is a successful option for my company?

Here’s what the members of the YEC community had to say:

1. Trust, but Verify

First, don’t hire someone just because they’re cheap. Remember, this is your money we’re talking about. If someone is charging significantly less than others, there’s probably a reason for it. Second, make sure to hire someone else to double-check the work of your financial manager. Having a second pair of eyes will keep them accountable and ensure everything is done correctly. ~ Lane Campbell, June

2. Make Sure Their Power Has Limitations

I want to stress the importance of setting limits on the person responsible for bookkeeping. They shouldn’t have the authority to write checks or spend money. It’s crucial that those who have the power to spend money are unable to change their purchase entries in the accounting system. If you make the mistake of allowing one person to hide their personal expenses like commuting or salon visits, you’re setting yourself up for trouble. The temptation is just too great for most people to resist. Trust me on this. – Wei-Shin Lai, M.D., AcousticSheep LLC

3. Test Their Digital Skills

When I was searching for a CFO, I had a previous experience with a money manager who preferred the traditional approach and struggled to grasp the online tools and technology I relied on for automating bookkeeping and financial tasks. So, when it came to hiring a new person for the role, I made sure to assess their technical skills and familiarity with online tools and systems. As a result, I found the ideal candidate for our business. – Natalie MacNeil, She Takes on the World

Step 4: Assess Your Requirements

If you spend less than $10,000 every month, it’s important to keep your fixed costs low and hire a professional bookkeeper. But if you have more than 10 employees and some income or outside funding, it’s a good idea to involve an experienced certified public accountant (CPA) who can act as a part-time controller. And if you’re a fast-growing startup and need someone who can provide strategic financial advice beyond just closing the books every month, you should search for a part-time chief financial officer (CFO). – Vishal Shah, NoPaperForms

5. Combine Software Knowledge with Industry Expertise

You know, if you’re thinking about hiring a part-time person to handle your finances, you might wanna reconsider. I mean, contracting can actually get you some pretty awesome talent that’s flexible and can grow with your needs. But hey, if you’re dead set on it, at least make sure they know how to use the software platform you’re already using. Trust me, that can be a major headache if they don’t. Oh, and industry knowledge? Yeah, it’s nice to have, but not always a deal-breaker. Lastly, don’t forget to check all their references. Gotta make sure they’re legit. ~ Josh Sprague, Orange Mud

6. Keep in Touch on the Regular

Listen, when you start working with a part-time finance person for your business, it’s crucial that you set up a regular schedule for checking in. You gotta stay on top of your finances all the time to avoid getting overwhelmed during busy periods like reporting, taxes, or fundraising. I recommend checking in every two weeks or once a month, depending on how much work you’re outsourcing. ~ Doreen Bloch, Poshly Inc.

7. Lay Out Their Duties from the Get-Go

When hiring someone part-time, it’s crucial to provide them with a clear job description and specific tasks to complete. This ensures that they have a well-defined role and are not overwhelmed with too many responsibilities. It’s also important to establish a regular schedule for check-ins so that you are aware of what’s happening with your finances.

8. Avoid Hiring Relatives

It’s best to steer clear of hiring family members who are not financially savvy. While it may seem like a good idea to save money and trust your relatives, it can lead to problems such as inaccurate bookkeeping or a failure to set up and maintain budgets. Instead, prioritize hiring the most skilled and knowledgeable person who can fulfill your specific needs.

9. Collaborate with an Expert

If you’re working with someone part-time, it’s important that they work closely with a financial advisor, business consultant, or CPA who can guide them in organizing your finances. Having an expert by your side ensures that your finances are optimized and well-organized, preventing any chaos that could arise without proper guidance. Trust the advice of professionals! ~ Marcela DeVivo, National Debt Relief

10. Be Clear in Your Communication

When you hire someone to work with you in your business, it’s crucial to have open and clear communication. This means clearly expressing your needs and expectations from the beginning and making sure they understand their responsibilities. By establishing effective communication early on, you can build trust quickly and foster a strong working relationship. ~ Sean Ogle, Location 180, LLC

11. Pay Them What They’re Worth

When you have someone managing an important part of your business, it’s crucial to pay them what they deserve. If someone offers to work for a low salary, it may be a sign that they lack experience or skills. Don’t settle for less! Invest the extra money to hire an expert and ensure your finances are in capable hands. ~ Blair Thomas, EMerchantBroker

12. Ensure Industry Knowledge

If you want finance support that truly adds value, make sure the candidate understands your industry and business model. Don’t hesitate to ask them for their thoughts on your industry or specific business. If they can’t provide you with new information, such as specific tax codes or financing options, it might be a warning sign. ~ Fan Bi, Blank Label

13. Plan for the Future

14. Understand Your Business

Knowing your business is crucial when it comes to understanding cash flow, expenses, market forces, and more. Create a dashboard of tasks that you want your part-time resource or contracted company to handle every month, in addition to their regular responsibilities. Take the time to personally introduce and onboard the individual or the company, and discuss the difficulties and worries you have. Make sure everyone is in agreement regarding the tools, policies, procedures, and expectations.