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How to Choose an Accountant for Your Business

Sep 26, 2022

When running your business, having the best team around you is critical. Regarding your company's accounting needs, the person or team handling the books must be the right fit. Even in the age of web applications and DIY accounting, hiring a professional to work with your business is still the best way to avoid tax mistakes and stay on budget. As you are looking for an accountant or accounting group to hire, there are several considerations. 


Company Size


The size and scope of your company are some of the most critical items to consider when you start your search for an accountant. How many employees your business has and your annual revenue are the two primary indicators that the Small Business Administration (SBA) uses to define a small business versus a larger business. Beyond this distinction, business owners should also consider their location, number of accounts, business partnerships, growth goals, and more. 


The accountant you hire should be able to view all of these factors and ones you haven't yet considered when they work with you. Especially when it comes to your business goals for each fiscal year, your accountant can make or break these goals – so be sure who you hire will be on board. 


Accounting vs. Bookkeeping


Accounting and bookkeeping are two sides of the same coin. Accounting is more focused on strategy and month-to-month operations, while bookkeeping is more concerned with the day-to-day and week-to-week. Bookkeeping is a task that may seem simple enough to do on your own or assign to one of your employees. 


However, as with accounting, small payroll or accounts mistakes can spiral into more significant issues like lawsuits. Here at N.E.W. Accounting, we offer accounting and bookkeeping services to meet your needs so you can focus on the business. 

Software Knowledge


Using the right software properly is a game-changer in accounting. As you look to hire your accountant, you should ask which software programs they are familiar with. Intuit's Quickbooks is one of the most common programs used by accountants, and there are several certifications a user can get, showing mastery over the program. 


Further, certain industries have specific programs for accounting or bookkeeping that are common. An accountant working with a construction company may need to utilize different software than an accountant working with a small retail store. 


Adaptability


Much like software knowledge, one trait to be mindful of when hiring your new accountant is their level of adaptability. For instance, if they are unfamiliar with specific software or web applications but can show you their track record of learning new systems quickly, they should still be considered for the role. 


As with many industries today, if you are not learning and adding new skills frequently, you may be left behind – this is the same for accounting. Your candidate should also be prepared to be adaptable during business growth periods, transition periods, and more. 

Personality and Work Style


Lastly, as with any hire for your business, your accountant should have a strong personality fit and a work style that meshes well with the rest of the company. Some business owners may fall into the trap of thinking that their accountant (or other office staff members) does not need to be a personality match if they don't interact with the rest of the employees often. 


However, personality does matter since an accountant's work is vital to the company and affects every employee. For example, if your employees tend to be outgoing, hiring an accountant who can match this energy makes all the difference. 


Regarding work style, you will want to outline clear expectations with the accountant you hire when you draw up a proposal of which accounting tasks they will do. Will the accountant be paid hourly or on a retainer? Will they work from home or in an office with the rest of the business? Does the accountant prefer to meet with you in person or virtually, and will you email, call, or text them? Every detail matters when it comes to your business' accounting needs.


Work With N.E.W.

Our team at N.E.W. Accounting is prepared to meet all of the considerations above and exceed your expectations. We know that small to medium-sized business owners can feel bogged down by their company's numbers, and we want to work with you so that you can focus on the rest of your business. Contact us today to get started!

Embracing Change: The Impact of Technology on Small Business Accounting

09 May, 2024
Technological advancements have revolutionized traditional accounting processes, from cloud-based software solutions to automation tools, offering efficiency, accuracy, and accessibility like never before. In this blog post, we'll explore the profound impact of technology on small business accounting, highlighting key trends and innovations shaping the industry. The Rise of Cloud-Based Accounting Software Gone are the days of cumbersome spreadsheets and desktop software installations. Cloud-based accounting software has emerged as a game-changer for small businesses, providing access to financial data anytime, anywhere. Platforms like QuickBooks Online, Xero, and FreshBooks offer real-time collaboration, automated updates, and seamless integration with other business tools, streamlining accounting workflows and enhancing productivity. Automation and AI-Powered Solutions Automation is another significant trend revolutionizing small business accounting. Tasks that were once manual and time-consuming, such as data entry, invoice processing, and reconciliation, can now be automated with the help of AI-powered software. Machine learning algorithms can categorize expenses, detect anomalies, and even generate financial reports, freeing up valuable time for accountants to focus on strategic analysis and advisory services.

Financial Lessons to Learn From Successful Small Businesses

13 Apr, 2024
When business owners and mentors give advice, they usually look at multi-million or billion-dollar companies and their leadership for business lessons. While the world's most successful conglomerates can teach us much, they're not the only places to draw inspiration. Successful small business owners can teach any organization tips for running and growing their business, which are often more tangible than those of large companies. What financial steps do well-run small businesses take? Let's look at some of the lessons we can learn from successful small businesses. Budgeting and Forecasting Budgeting and forecasting serve as the foundation of financial planning for small businesses. By creating a detailed budget and regularly updating financial forecasts, companies can gain insights into their cash flow, allocate resources efficiently, and anticipate future expenses. A well-thought-out budget enables businesses to set realistic financial goals and track their progress toward achieving them. Moreover, forecasting helps identify potential challenges and opportunities, allowing companies to adapt and strategize accordingly. Investing in Technology In today's digital age, investing in the right technology is crucial for small businesses to stay competitive and efficient. Whether it's accounting software, customer relationship management (CRM) systems, or marketing automation tools, technology can streamline operations, improve productivity, and reduce costs. By embracing technology, businesses can automate repetitive tasks, streamline workflows, and enhance customer experiences, ultimately driving growth and profitability. Cost Control Controlling costs is essential for maintaining profitability and sustainability. Small businesses should regularly evaluate their expenses and identify areas to achieve cost savings. This evaluation might involve negotiating better supplier contracts, optimizing inventory levels, or reducing unnecessary expenses. By implementing cost-control measures, businesses can improve their bottom line and strengthen their financial position in the long run.

A Small Business Owner's Guide to Payroll

07 Mar, 2024
Running a small business comes with challenges, and managing payroll is undoubtedly one of them. As a small business owner, you must understand payroll and the necessary steps to ensure your employees are paid accurately and on time. Whether you're just starting or looking to improve your payroll knowledge, let's explore the essential information you need to streamline your payroll process and keep your employees happy. The Importance of Payroll for Small Businesses Payroll is calculating and distributing employee wages, benefits, and deductions. It plays a crucial role in the smooth functioning of any business, regardless of its size. Here are some key reasons why payroll is vital for small businesses: Compliance with Employment Laws : Payroll ensures your business complies with local, state, and federal employment laws. By accurately calculating and withholding taxes, you avoid penalties and legal issues. Employee Satisfaction : Timely and accurate payment is essential for employee satisfaction. A reliable payroll system helps build trust and fosters a positive work environment. Financial Management : Payroll provides crucial financial information, such as labor costs and tax liabilities. This data helps you make informed budgeting, forecasting, and resource allocation decisions. Tax Obligations : Payroll and tax obligations are closely related. Accurately calculating and reporting payroll taxes ensures you meet your tax obligations and avoid costly penalties. Understanding Payroll Basics Before diving into payroll specifics, it's important to understand some key terms and concepts. Here are a few essential payroll basics: Employee Classification : Understanding the distinction between employees and independent contractors is crucial. Employees are subject to different tax and benefit regulations compared to independent contractors. Pay Periods : Pay periods determine how often you pay your employees. Standard pay periods include weekly, bi-weekly, semi-monthly, and monthly. Choose a pay period that aligns with your business's financial capabilities and employee expectations. Gross vs. Net Pay : Gross pay refers to an employee's total earnings before deductions. Conversely, net pay is the amount an employee takes home after deductions such as taxes, benefits, and retirement contributions. Deductions : Deductions are amounts subtracted from an employee's gross pay. These include federal and state taxes, Social Security and Medicare contributions, health insurance premiums, retirement contributions, and other authorized deductions. Calculating Employee Wages and Deductions Accurately calculating employee wages and deductions is crucial to ensure that your employees receive the correct pay and that you comply with tax regulations. Here are the critical steps involved in calculating employee wages: Determine the Pay Period : Start by determining the length of the pay period; this could be weekly, bi-weekly, semi-monthly, or monthly. Calculate Regular Wages : For hourly employees, multiply the hours worked by the hourly rate. For salaried employees, divide the annual salary by the number of pay periods in a year. Account for Overtime : If employees have worked overtime, calculate the overtime hours and apply the appropriate overtime rate. This rate is typically 1.5 times the regular hourly rate. Include Bonuses and Commissions : If applicable, factor in any bonuses or commissions earned during the pay period. Deduct Taxes and Other Withholdings : Calculate and deduct federal, state, and local taxes based on the employee's filing status and income. Also, deduct Social Security and Medicare contributions, health insurance premiums, retirement contributions, and other authorized deductions.
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