The right small business accountant can save you money. While their hourly rates range from $100-$300, their expertise helps you save the most important money through smart tax strategies that maximize profits.
Their value goes way beyond the reach and influence of tax preparation. A proactive accountant updates you about changing regulations and helps lower your tax liability. They use strategies like asset depreciation and give an explanation about your specific industry. These professionals become part of the core team that keeps your company financially healthy and successful.
This piece will help you find and assess the best accountant for your business. You’ll learn about the right time to seek professional help, effective search methods, and significant factors to think over during your selection process.
Understand When You Need an Accountant
Small business owners often start by managing their own finances. The right time to bring in a professional accountant can make or break your business success. Here’s a look at the stages when finding a “small business accountant” becomes a must rather than a choice.
Starting a business or side hustle
Your early business decisions can shape your financial future. Professional guidance from day one makes perfect sense.
A qualified small business accountant offers vital startup support by:
- Recommending the best business structure (sole trader, partnership, or limited company) based on your situation
- Creating proper accounting systems that match your business needs
- Taking care of IRD registrations, company incorporations, and original compliance requirements
- Developing financial forecasts and business plans that boost loan applications
Professional accounting advice helps you understand tax implications and maximize deductions if you’re running a side hustle with your main job. Starting with the right foundation prevents things from getting pricey later.
Growing beyond DIY accounting
DIY accounting works at first, but you’ll notice signs that tell you it’s time for professional help:
Think about what managing your finances really costs. If you charge NZD 85 per hour and spend 5 hours each month on accounting, you’re losing NZD 425 each month that could help your business grow.
Your business growth brings more financial complexity. You’ve outgrown the DIY method when:
- Bookkeeping takes up time you need for core business tasks
- Your financial reports don’t give you the insights you need
- You handle multiple revenue streams or hire more people
- Your accounting software holds back your growth
Small businesses with fewer than 10 employees pay compliance costs around NZD 5,116.83 per employee. This creates a heavy burden without expert help.
Facing complex tax or compliance issues
Tax rules and compliance needs become trickier as your business grows. The price of mistakes goes up too.
You need professional accounting help when:
- You can’t keep up with changing tax laws
- You deal with GST registration and returns (required if you earn over NZD 102,336.62 yearly)
- Tax authorities might audit your business
- You need to follow specific rules like Anti-Money Laundering (AML) requirements
Tax remains the biggest compliance expense by far for small businesses, eating up over 41% of total compliance costs. More than 81% of businesses now use external advisers for tax compliance – the highest number ever recorded.
A skilled accountant spots tax-saving opportunities you might miss, while helping you avoid penalties. Hefty fines apply for incorrect or missing returns.
Note that tax obligations apply to businesses of all sizes – even side hustles and part-time ventures must follow tax rules. Finding the right accountant early helps prevent problems and saves money through smart financial planning.
How to Search for the Best Small Business Accountant
The search for your ideal small business accountant starts when you realize you need professional financial guidance. You’ll need to do some research and evaluate your options carefully. Here’s a look at the quickest ways to find a qualified accountant who lines up with what your business needs.
Using directories and ‘accountant near me’ searches
Professional directories give you a well-laid-out way to find qualified accountants nearby. You have several trusted options to choose from:
Xero advisor directory is a great resource for small businesses. This platform helps you locate accountants and bookkeepers who have staff members trained in Xero with eight or more clients using the software. Their certification shows they know this popular accounting system inside and out.
MYOB’s Find An Advisor page serves as another solid starting point. The Tax Practitioner’s Board directory can also connect you with certified professionals in your area.
Your “accountant near me” searches should specify your industry needs. Most directories let you filter by location, services, and software expertise. Baker Tilly Staples Rodway, as with many firms, is a platinum partner of Xero and an enterprise partner of MYOB, which points to their deep expertise with these platforms.
Asking for referrals from other business owners
Yes, it is true that referrals are the best way to find trustworthy professionals. 75% of accounting firms say referral marketing brings them the most new customers.
The best moment to ask for referrals comes right after delivering great service. One expert points out that “Clients who have just had a win are more likely to give a good referral”. You might ask after completing a tough tax return or giving strategic financial advice when clients really value your expertise.
Your top clients bring better results than casual contacts. These clients often introduce you to similar people, which builds a client base that values your work. Note that you shouldn’t ask too much—clients don’t like constant referral requests.
Checking online reviews and testimonials
Online reviews substantially shape potential clients’ choices. About 93% of people read reviews before they buy from an unfamiliar company online. Reviews matter even more for accounting firms since clients trust them with sensitive financial information.
Reviews work so well because positive feedback validates and reassures that services meet expectations. They also show an accountant’s communication skills, reliability, and knowing how to meet deadlines—vital factors in your choice.
Local firms can stand out with just a few reviews. One firm ranked third in Google results for a mid-sized city with a single customer review. This shows that getting just one review monthly can boost your visibility substantially.
Look for these elements in reviews:
- Specific positive comments about the benefits received
- Measurable results achieved
- Examples of how the accountant solved specific problems
Pick about three promising firms after your research. Then reach out to schedule a consultation with each. These first meetings help you gage their expertise and communication style before making your choice.
What to Look for in a Small Business Accountant
You need to evaluate potential accountants based on specific criteria once you’ve identified them for your business. Not every financial professional brings the same value, expertise, or specialized knowledge that your small business needs. Let’s get into what matters most when choosing the right accounting partner.
Certified vs non-certified accountants
The difference between certified and non-certified accountants extends beyond credentials. Chartered Accountants (CAs) complete rigorous education requirements that include degree-level study, workplace experience, and professional competence programs. Anyone could technically call themselves an accountant whatever their formal qualifications.
Chartered Accountants deliver broader expertise in tax planning, financial planning, auditing, and corporate finance. They follow strict ethical and professional standards set by organizations like Chartered Accountants Australia & New Zealand (CA ANZ).
Certification ended up providing reassurance about professional standards. You should verify candidates’ credentials—whether ACCA, ACA, CIMA or other recognized certifications based on your location.
Industry-specific experience
Accountants with relevant experience in your industry are a great way to get specialized knowledge. They understand unique challenges, operational nuances, and regulatory requirements specific to your business sector.
To cite an instance, manufacturing, technology, healthcare, and real estate sectors each have different accounting factors. These specialists have worked repeatedly on similar projects instead of switching between unrelated industries.
Their compliance knowledge helps them stay current with sector-specific tax structures and regulatory changes. They tackle industry-specific problems proactively and help you avoid regulatory fines that can get pricey.
Accounting expertise without industry context might lead to missed opportunities. General accountants often struggle with complex industry-specific regulations, which can result in fines and operational disruptions.
Familiarity with your accounting software
Your business accounting system must be compatible with your accountant’s preferred software to work together efficiently. QuickBooks Online dominates with 63% of the small business accounting software market, according to Investopedia research.
Think over these factors when evaluating accountants:
- Your current accounting platform (QuickBooks, Xero, FreshBooks, etc.)
- Integration capabilities with your other business systems
- Data transfer processes between different software environments
Software incompatibility creates real challenges. Data can move between different systems, but the process takes time and often leads to errors. Sending financial information through email also creates serious security risks for sensitive data.
Finding an accountant willing to adapt matters just as much. Many professionals stick to particular software brands after years of use. Look for someone who either uses your preferred system or wants to learn it.
The ideal match combines professional qualifications, industry expertise, and technological compatibility—this partnership will truly stimulate your small business growth.
Interviewing and Comparing Candidates
Meeting candidates face-to-face or virtually gives you the best chance to review potential accounting professionals beyond their credentials and references. You can directly compare their communication styles, expertise, and fee structures. My experience shows that meeting 2-3 prospective accountants provides enough comparison without becoming overwhelming.
Questions to ask during the interview
These specific questions will help reveal both expertise and compatibility with your business needs:
- “What areas can you help me and my business with?” This lets them show their grasp of your industry challenges.
- “How familiar are you with my specific industry?” They should provide examples of businesses they’ve worked with in your sector.
- “What accounting software do you typically use or recommend?” This helps ensure their systems match yours.
- “What qualifications and licenses do you have?” This confirms they have the right certifications for your needs.
- “How proactive are you in flagging issues with cash flow management?” Their answer reveals their approach to preventative financial guidance.
How to assess communication style and responsiveness
The best accountants translate complex financial concepts into simple language you understand. Watch how they explain things. Do they use clear language or bombard you with technical terms during your conversation?
Most firms have set response policies, like a 24-hour callback rule. You should ask: “How easy is it to contact you, and who will be assigned to my account?”. Remember that your initial contact might not handle your day-to-day work.
Pay attention to their listening skills. Do they let you speak or constantly interrupt? Do they try to understand your business concerns? Research shows poor communication makes clients leave accounting firms, with approximately 23% of businesses saying technology adaptation matters most for their accountant’s relevance.
Understanding their fee structure
Talk about costs early to avoid surprises later. Accounting fees range from NZD 170.56 to NZD 1364.49 per hour, or between NZD 1705.61 to NZD 8528.05 yearly for fixed-fee arrangements.
Get detailed written quotes from each accountant you interview. Ask these key questions:
- “What exactly is included in your monthly fee?”
- “What would trigger a change in our set monthly fee?”
- “What services require additional budget?”
Different payment structures exist – from hourly rates to monthly retainers, or even percentage-based fees tied to your turnover. The cheapest option isn’t always best if it means lower quality service or less specialized knowledge.
Accounting fees are tax-deductible. A quality small business accountant often saves you more in tax than what you pay them.
Making the Final Decision and Getting Started
You’re ready to make that significant final selection after interviewing several candidates. The right small business accountant can become a valuable business partner for years to come. Taking time with these final steps will be worth the effort.
Checking references and doing background checks
Speaking directly with your prospective accountant’s current clients reveals much more than written testimonials. A quick phone call can tell you everything about their working relationships. Ask specific questions about responsiveness, problem-solving abilities when you call references. Find out if they’ve saved their business money through strategic tax planning.
Professional bodies can verify credentials for certified accountants. Background checks are vital since accountants handle sensitive financial information. These checks can reveal red flags like financial stress or convictions that might show a tendency toward fraud.
Setting expectations and dividing responsibilities
Your next step is to clearly establish who handles what tasks with your chosen accountant. Natural checks and balances emerge in your financial processes when you divide responsibilities properly. Make sure no single person controls an entire financial process from start to finish – this includes you as the business owner.
A month-end checklist that details specific task ownership helps prevent blame games and keeps everything on track. Set your communication priorities upfront too – whether you want regular meetings or updates as needed.
How to switch from your current accountant
The relationship with your existing accountant should end professionally. Give proper notice and pay any outstanding invoices. Your new accountant needs formal authorization to contact the previous one for essential documents and information.
A “professional clearance letter” from your new accountant will make easier the handover process. Your previous accountant must provide all information honestly and quickly under industry ethical standards. The secure handling of sensitive information should be your priority during this transfer.
Your new financial partnership needs ongoing care. Strong foundations for this vital business relationship develop through regular check-ins during the original months.
Conclusion
Choosing a small business accountant is one of the most important decisions you’ll make for your company’s financial health. The search might seem overwhelming at first. A well-laid-out approach makes this process both manageable and worthwhile.
The right accountant goes beyond handling your taxes. They become a trusted advisor who helps direct complex financial decisions, identify growth opportunities, and safeguard your business interests. Their expertise often pays for itself through tax savings and improved financial strategies. You’ll also have more time to focus on growing your business.
Your search should begin with gathering referrals, checking credentials, and meeting potential candidates. Cost is important but finding an accountant who understands your industry comes first. Look for someone who matches your communication style and shows genuine interest in your success. This careful selection creates a foundation for a productive long-term partnership that aligns with your business goals.
FAQs
Q1. How do I know when it’s time to hire an accountant for my small business?
It’s time to consider hiring an accountant when you’re starting a new business, your DIY accounting is taking too much time, you’re dealing with complex tax issues, or your business is growing rapidly. An accountant can provide valuable expertise in areas like business structure, tax planning, and financial forecasting.
Q2. What qualifications should I look for in a small business accountant?
Look for a certified accountant (such as a Chartered Accountant) with relevant industry experience and familiarity with your accounting software. Certifications ensure adherence to professional standards, while industry-specific knowledge can provide tailored insights for your business.
Q3. How much does a small business accountant typically cost?
Accounting fees can range from about $170 to $1,365 per hour, or between $1,700 to $8,500 annually for fixed-fee arrangements. The cost varies based on the services provided, the accountant’s experience, and your business needs. Remember that accounting fees are generally tax-deductible.
Q4. What questions should I ask when interviewing potential accountants?
Ask about their experience with your industry, their qualifications, the accounting software they use, their approach to cash flow management, and their communication style. Also, inquire about their fee structure and what services are included in their rates.
Q5. How do I transition from my current accountant to a new one?
To switch accountants, provide adequate notice to your current accountant and settle any outstanding invoices. Authorize your new accountant to contact the previous one for necessary documents. The new accountant should send a “professional clearance letter” to facilitate the handover process. Ensure all sensitive information is transferred securely during this transition.
