How to Hire an Accountant Who is Right for Your Business

Hiring the right accountant can make or break your business. 

It might sound dramatic, but think about your personal finances. You wouldn’t swipe your debit card on a major purchase without knowing how much was in your bank account or agree to lend a friend money without asking some questions about why they need it. So why would you make similar financial decisions for your business without comparable information?

To succeed, businesses must monitor their finances and seek expert advice when managing their money becomes complex. If business owners don’t know where they stand monthly or annually, their chances of surviving amid cutthroat competition decrease exponentially.

Despite the importance of financial management in a business, only 3% of business owners can read their financial statements. The task of ensuring that everything is indeed in order usually falls on the company’s accountant. This is why hiring the right accountant to meet your business’s unique needs is very important. In this article, we outline the role of a good accountant and provide tips and strategies to help you hire an accountant for your business.

The Role of an Accountant

Why hire an accountant? Before you hire an accountant for your business, you need to understand their three basic roles:

Advisory services

Their primary role is to be well-versed in your financial statements and manage your tax situation. If your accountant does not prepare the actual taxes, they will be the intermediary with the tax CPA. This allows them to help you make informed decisions about your business and finances. Accountants are also uniquely qualified to offer advice on insurance, business expansion, and spending. In short, these insights help business owners and managers make the right decisions.

Record keeping

Accountants are responsible for setting up bookkeeping and accounting systems for your business. A good accounting system helps you make forecasts, evaluate profitability, and set reasonable prices. Tracking budgets, predicting trends, determining breakevens, and monitoring costs and expenses are all tasks that they can help you manage.

Auditing services

Auditing services that include constructing your business’s financial statements from scratch or conducting an audit for loan purposes are handled by accountants. Often, auditors are considered outside accountants who assess the quality and accuracy of financial statements. These auditors often leave the public accounting sector and are a viable option for your business based on the strong training they received in the public accounting sector.

What are the Different Types of Accountants?

There are a wide range of accounting specialties. When it comes to running a business, here are the major types of accountants to know.

Bookkeeper

A bookkeeper records a company’s financial transactions and ensures its accounts are maintained in an orderly fashion. Whereas a bookkeeper is mainly concerned with organization and accuracy, an accountant focuses more on analysis and financial optimization.  

Certified Public Accountant (CPA)

A CPA is an accounting professional who has been certified by the state after passing a rigorous exam. CPAs work in every sector and also hold many of the accounting titles below. They’re not limited to one type of accounting; rather, the CPA designation certifies an accountant’s expertise and capabilities and can help them move into more specialized areas of the profession. 

Financial accountant

Financial accountants oversee an organization’s financial activities, accurately recording transactions and producing comprehensive reports. 

Management/cost accountant

Management accountants, also called cost accountants, help companies better manage their operations by analyzing budgets, projecting cash flow, interpreting data, and identifying areas for improvement. 

Tax accountant

Tax accountants specialize in–you guessed it–taxes. They often work for public accounting firms, which help public and private organizations with their tax-related financial needs. Companies can also employ them in-house. 

Forensic accountant

Forensic accountants examine financial records to ensure compliance or, in most cases, detect attempts to circumvent them. They employ creative methods to discover financial data and uncover mistakes or outright fraud. 

Accounting clerk

This junior accounting team member assists accountants by performing data entry tasks, working in Excel, and preparing various reports. 

Financial advisor

Financial advisors advise businesses on optimizing their financial position, recommending investment strategies, and providing guidance on cash flow and liquidity. It’s important to note that being employed as a financial advisor does not necessarily mean someone is an accountant. 

Controller

A controller is typically the senior accountant in an organization. They oversee a business’s accounting staff and perform high-level tasks, such as guiding the company’s financial decisions. 

Auditor

An auditor examines an organization’s records for accuracy and compliance with all relevant laws. They may be employed by the business or work for a third-party organization, such as a government agency. 

Where to Find Accountants

While you can always post your job opening on online job boards, you’ll likely reach a higher quality pool of candidates by using the following channels. 

Referrals

The best way to find a reliable accountant for your business is to get a recommendation from a trusted business leader or a member of your network. Ideally, seek out a referral from someone within your industry or a business with similar needs. 

Local practices

Check out accounting firms in your local area. Peruse their online reviews, view their website to learn about their areas of expertise, and schedule a face-to-face consultation to discuss your goals.

Professional associations

Industry organizations offer member directories to help you find a reputable and certified accountant near you. Some accounting trade groups include:

• American Institute of Certified Public Accountants
• Institute of Management Accountants
• American Accounting Association
• National Society of Accountants 

Colleges and universities

If you need to hire for an entry-level accounting position, partner with local educational institutions to reach recent graduates. You may be able to distribute job listings through the school’s career center or get direct referrals from counselors. 

Freelance marketplaces

If your needs aren’t great enough to justify a full-time employee, or if you need simple bookkeeping services, a freelance accountant could be the perfect solution. Remote work marketplaces like Upwork and Toptal give you access to niche expertise at an affordable cost. 

Tips for Hiring the Right Accountant

Now that you know what an accountant is supposed to do and where to find one, how do you hire a good accountant for the job? What to look for in an accountant? What qualities and qualifications does the right accountant have? These are the questions that we have answered below:

Key qualifications

It is very important to know what qualifications to look for before you hire an accountant.

Most accountants can handle basic tasks like financial statements and bookkeeping. However, for more technical information, such as tax advice and audits, owners and hiring managers should seek certified and licensed accountants.

When hiring accounting talent, it’s essential to identify the right blend of hard and soft skills. Regarding technical qualifications, you’ll want someone with experience in core accounting programs like Excel and Quickbooks. If other platforms are key to your operations, like your payroll system or ERP software, look for candidates who are familiar with these applications. 

In terms of soft skills, being detail-oriented is a must, as this is a position where accuracy is paramount. Strong communication skills are necessary to convey crucial financial information to company stakeholders, while business knowledge is useful to help turn accounting data into practical solutions. 

Other important qualifications to look for in an accounting professional include experience with generally accepted accounting principles (GAAP), financial statements, financial reporting, forecasting, budgeting, and data analysis. We’ll go into greater detail about hard and soft skills to look for below. 

Certifications

A CPA differs from a CMA (Certified Management Accountant). Both CPA’s and CMA’s have the following requirements:

1. Pass their respective exams,
2. Meet specific educational requirements to sit for their exams,
3. Work experience, and
4. Continuing education. 

What’s the difference? Ultimately, a CMA can take a more active role in managing in addition to meeting your daily accounting needs. The CMA’s work experience must be two continuous years of professional experience in management accounting and/or financial management. A CPA has extensive training but lacks actual management experience. CPAs are excellent at advising, but a CMA is stronger at managing.

Industry expertise

Not all accountants have the same type of industry expertise, and since no two businesses operate in the same way, it is important to determine what type of expertise and experience you need your accountant to have. For example, an accountant who has worked with manufacturers will not have the same expertise as somebody working in construction or small businesses like non-profits or retail shops. Therefore, choosing the right accountant for your firm requires asking the right questions during the interview process.

Complexity

Businesses also need to consider the duties that the accountant will perform. This requires some inspection of your own business needs. Do you want someone to prepare your tax returns? Manage your financial statements?  Or do you need more technical financial assistance, such as retirement planning advice, auditing services for bank loans, and financial planning management? Finding an accountant with the expertise of these complex accounting services means businesses must first determine their needs and then seek candidates who match their expectations.

Specialization

This is one industry where you should be wary of professionals who are a ‘jack of all trades, master of none.’ As you’ve probably realized by now, there are many, many niches within the field of accounting. Doing it all isn’t good unless you’re dealing with one of the major accounting firms. Look for a professional who specializes in the area where you need assistance. 

Ethics

In some professions, personal values matter more than others. Accounting is one of those professions. You don’t want the person balancing your books to be someone who cheats on their taxes or steals from the collection plate at church. A strong sense of ethics and moral integrity will help ensure that the person you entrust with your company’s finances will do the right thing even when no one’s looking. 

Confidentiality 

Members of your accounting team will be privy to loads of sensitive and confidential information about your company and the organizations you have dealings with. Discretion is critical to maintain your reputation and avoid legal trouble. 

Skills to Look for in Accounting Candidates

Handling a business’s financial records is no easy task. Accounting goes beyond crunching numbers. When hiring an accountant for your business, it is important to keep a lookout for the skills and traits listed below.

Hard skills

Microsoft Excel

This industry staple is essential for completing fundamental accounting tasks, from storing data and creating reports to making predictions and simplifying workflows. Candidates should possess knowledge of basic Excel functions like formulas and macros as well as more advanced functions like pivot tables.

Quickbooks, NetSuite, or comparable software

Financial professionals use accounting software to send invoices, manage accounts payable and receivable, generate financial reports, and more. Quickbooks and NetSuite are two of the most widely used platforms. 

Structured query language (SQL)

Structured query language, or SQL, is a programming language that can help accountants use financial data to glean broader business insights and identify meaningful trends. Other programming languages like Python and R can also be useful.

Blockchain

Blockchain technology can make accounting more secure and transparent. While it’s not a necessity for most roles, knowledge of Blockchain can set candidates apart and help your organization keep pace with emerging accounting practices. 

Data analytics

Your business generates a wealth of data. An accountant with data analytics skills can help you harness, understand, and interpret that data to improve profitability, reduce risk, and ensure continued longevity. 

Soft skills

Time management

The primary job of an accountant is to keep the figures, financial data, and paperwork of your business in check. Professional accountants must devise ways to find information quickly and efficiently. Testing your accountant’s time management skills is a crucial requirement.

Attention to detail

Numbers can be tricky to deal with; even a small mistake in figures can have disastrous consequences. As financial planning and tax compliance are part of the accountant’s job description, the ability to give attention to even the smallest of details ensures that mistakes are minimized.

Trustworthiness

It goes without saying that any accountant you hire should be a trustworthy candidate. An accountant will be entrusted with confidential financial details of your business, and to avoid accountant fraud, you must find a trustworthy candidate. Hiring accountants through a firm or referrals is an easy way to ensure authentic candidates. Verifying their qualifications and certifications received is also a good way to sift through the job applications that your business may receive.

Communication 

Contrary to popular opinion, accounting is not a solitary act. Professional accountants work collaboratively with different sectors in the organization and must be able to communicate effectively. Providing insights to staff members, making decisions, working in a team, and distilling expert information about the company’s financial workings are all part of the accountant’s job description. A common link between all these skills is the ability to communicate quickly and effectively.

Flexibility

All businesses require flexibility and adaptability. But for accountants, this is an extremely crucial trait. They must embrace the challenges of a changing economy, such as making the required shift to automation and AI technology. Even the day-to-day tasks of a business organization require accelerated pace and adjustments, and accountants must quickly adapt to and take advantage of the business’s fast-paced daily operations—only then can they provide efficient services.

Problem-solving

An accountant’s ability to help your business overcome complex problems is what makes them valuable. Look for a candidate who is comfortable using critical thinking and creativity to develop innovative ways to solve business issues. 

How Much Does it Cost to Hire an Accountant?

The cost to hire an accountant depends on a number of factors, like whether you’re hiring them full- or part-time and what tasks you’re looking for them to manage. Even then, the cost can vary widely based on where you live and the level of experience they have. 

According to the National Society of Accountants, here are the average hourly rates charged by public accountants for a range of services:

• Payroll: $100/hour
• Financial services: $154/hour
• Management advisory services: $158/hour
• Audit services: $164/hour
• Tax services: $174/hour
• Federal and state tax returns: $180/hour

It should be noted that these numbers are merely an average. The costs ranged dramatically depending on the state, the size of the firm, and whether they operate in a rural, suburban, or urban area.

Hiring an accountant as a full-time employee comes with additional costs, like onboarding and benefits. According to estimates by payroll provider ADP, when you factor in paid leave, insurance, retirement, and legally required payments like FICA, the true cost of an accountant making $50,000 would be around $65,000 a year for the employer, in addition to about $4,000 in hiring costs for things like labor and training. 

Interview Questions to Ask When Hiring an Accountant

1. What experience do you have working with businesses like mine?

You want an accountant who has experience not only in your industry but, ideally, working with a business of a similar size and structure. 

2. How do you keep up with the latest financial laws and guidelines?

Look for someone who can easily list industry publications, websites, or other means to learn about tax code changes and financial legislation. 

3. Tell me about a time you made a mistake.

Integrity is essential in a job that manages money. The right candidate should take accountability for their mistake and explain how they did what was necessary to make it right. 

4. How would your colleagues/clients describe you?

This question can be useful in identifying specific traits that you’re looking for, such as someone who’s easy to contact, dependable, meticulous at record-keeping, and so on. 

5. One of our biggest goals this year is X. How would you help us achieve it?

One of the reasons you’re hiring an accountant is to gain access to the expertise you don’t personally have. This is a good chance to identify if their knowledge applies to what you want to accomplish. 

6. How do you use automation in your work?

To run smoothly, a growing business needs to leverage automation. A good accountant should be able to help you extend that to your finances. 

7. What steps do you take when you start working for a new company?

A strong candidate should easily be able to list basic onboarding steps, which might include running financial reports and setting up accounting software.  

8. How do you manage a heavy workload?

Since accounting is a field that can be subject to heavy swings in work volume, it’s important to understand how well an accountant can manage stress and shifting priorities. 

Key Takeaway

Accountants play an essential role in small and big businesses alike, as they are tasked with the complete responsibility of your company’s financial management.

Additionally, managers, creditors, and investors can all seek their expertise and advice to make efficient business decisions. Hence, hiring an accountant is no easy feat; as the steps above indicate, it takes time and consistent effort. In short, as with any recruitment process, the challenges of hiring the right accountant are numerous and daunting.

Fortunately, you can overcome these common recruitment challenges by partnering with the right recruitment agency. Indeed, working with a professional recruitment agency can help unravel the various uncertainties associated with recruitment and hiring practices.

Partner With Expert Recruiters to Help You Secure The Best Accounting Talent

Not all recruiters are the same. The key to success is to find and partner with an agency that can understand and deliver exactly what your business needs.

That’s why at 4 Corner Resources, we’re passionate about delivering quality customer service. Our first step is to understand your accounting staffing needs, and then we work on shortlisting trustworthy and qualified candidates who can become valued employees.

Thanks to our client-centric approach, we are continually ranked as one of Orlando’s top recruitment and staffing agencies. As a nationally recognized professional staffing agency, we have a diverse portfolio of clients from across the country. We also have the necessary experience to help you find the best accountant for your business—contact us today!