Finding the right number-cruncher
By Christine Selvig • Bankrate.com

As with any other business decision, a little homework now can mean a lot less heartache later. Here's what you need to look for when hiring an accountant or bookkeeper.

 

7 steps to finding the best number-cruncher

Begin your search for an accountant by asking yourself a few questions: Do you understand basic accounting principles? Can you read and interpret monthly statements yourself or will you need to have your accountant or bookkeeper go over them with you? Will you need assistance with payroll? Will someone from your firm be able to handle basic transaction data entry?

Build a prospect list by asking your business advisers, business associates and friends to recommend accountants and/or bookkeepers. Narrow the field with phone interviews.

Arrange a preliminary consultation with your two finalists. Normally, initial consultations are free. Discuss your needs and the firm's standard procedures and billing policies.

Ask for an agreement proposal based on your initial interview. Though accountants base their fees on an hourly rate, they often will draw up a service plan that can be billed monthly, quarterly, semiannually or annually, depending on the level of service.

Are you considering a couple of CPAs? Find out if they're licensed to practice in your state. Are they active in any national, state or local organizations? Also ask if you can take a look at the firm's Peer Review report.

Ask for references, preferably from your industry. Then ask the references about the accountant's availability, and ability to meet deadlines and work within the estimated price.

Most firms will provide you with an engagement letter spelling out services and costs and methods for contracting for additional services out for additional services.

-- Posted: Dec. 13, 1999