Starting a small business can be difficult, especially if you are a first-time entrepreneur. As you begin, it is critical that you examine the professional services that can help make the process smoother.
Unless you have extensive experience with finances or accounting, you will see that employing a professional accountant for your small business has numerous advantages.
For example, if you want to be aggressive with your tax techniques, a recent graduate with no experience working for an accounting company may not be the greatest fit. Instead, choose someone who has been in the field for a while and can utilize their experience to help you get the greatest result for your organization.
Another reason experience is important is because of the subtle complexities in tax law. An accountant who has previously worked for a small firm will have more relevant knowledge than an accountant who previously worked for a huge organization. Experience counts, so look for someone who knows how to help in the appropriate way.
Types of Accountants For Businesses
Here are the different types of accountants and when you might need one:
Staff accountants are an excellent choice if you need someone with a bachelor’s degree in accounting who can execute a variety of tasks. They are responsible for a wide range of tasks, including the monitoring and reconciliation of corporate finances, payroll and cash management, and personnel supervision. As a staff accountant progresses in their position, they may be able to lead the organization in financial forecasting.
Certified Public Accountants (CPAs)
CPAs are most renowned for their work in federal and state taxes. However, they accomplish far more than that. A CPA may be employed to supervise the organization’s staff accountants due to their broad, concentrated education. They are frequently regarded as an organization’s financial counsel. CPAs are also in charge of managing audits or reviews, so if you get audited during tax season, you should hire one.
Project accountants are typically employed for specific ongoing projects and may be a long-term employee or a contractor hired to oversee a single goal. Project accountants are in charge of everything, including the creation of bills, the collection of invoices, the approval of expenses, the approval of billable hours, the planning and maintenance of project budgets, and ensuring that the project is completed on time.
Investment accounting is another accounting vocation that operates outside of the domain of taxes. These accountants typically work in the financial industry for an investment broker or asset management organization. Investment accountants must be educated about the investment prospects that an organization or business has to offer, in addition to knowing the fundamentals of accounting.
An investment accountant is also responsible for ensuring that a company complies with state and federal rules.
A cost accountant’s goal, like that of a project accountant, is to ensure that cost efficiency is met. Despite this resemblance, cost accountants are not recruited on an as-needed basis. Instead, firms hire a cost accountant when they need help controlling the profitability and budgets of their supply chain.
Cost accountants are typically in charge of analyzing labor costs, material costs, shipping costs, production expenses, and other supply chain costs.
A forensic accountant, as the name implies, is in charge of evaluating financial records related to errors, omissions, or fraud. Forensic accountants can work for firms that specialize in this form of accounting, as self-employed individuals, in the legal industry, or for the government.
Auditors are in charge of ensuring that companies’ financial information is appropriately recorded. Every year, most organizations are required to undergo at least one external audit by someone who is not an employee. Auditors are in charge of financial statement evaluations,
account books, accounting systems, and fiscal records, among other things. They are also in charge of ensuring that a company complies with all applicable financial requirements.
Financial consultants can assist individuals or businesses in making prudent financial decisions. A financial consultant might work for themselves or for a company that offers financial consulting services. They are in charge of evaluating financial reports, analyzing financial statements, and assisting firms in remaining compliance with financial regulations as appropriate.
Final Thoughts: Hire the Right Type of Accountant
As a business owner, your days might get too hectic, especially when you’re left with a mountain of receipts to sort through at the end of the month. Choosing the appropriate accountant for your business will help you navigate your company’s financial challenges and plan for the future.
Today CFO can assist you with all of your company’s financial needs. We understand how to maximize your cash flow and conquer your financial challenges. Contact our financial experts today to learn which type of accountant suits your business.