Hiring an accountant can streamline your business finances, but finding one within your budget requires careful consideration. Many accountants charge high fees that small businesses may not be able to afford.
However, there are also specialist small business accountants who offer more reasonable rates. If small business accountants are still too expensive, you can consider hiring a remote accountant or using outsourced accounting services.
Here's what to keep in mind when hiring an accountant on a budget:
Table of Contents
- Does your business need an accountant?
- How to hire an accountant that fits your company (and budget)
- Identify the business needs
- Decide whether you need a full-time or part-time accountant
- Make a list of interview questions
- Post a job on relevant platforms
- Conduct onboarding formalities carefully
- Look for referrals from friends and colleagues
- Summing Up
Does your business need an accountant?
First, you need to determine if your business actually needs an accountant. In the early stages, when there isn't much to record or calculate, someone with basic accounting knowledge and math skills may suffice. You could hire an accountant later as your business grows.
However, it's recommended that you hire an accountant as soon as you start your business. Even before you launch, an accountant can help with critical decisions, such as choosing the right business structure (e.g., sole proprietorship, joint venture, private limited company).
Additionally, an accountant can help you secure funding from banks or investors by preparing clear financial projections and goals. They can also ensure that your financial documents are well-organized from the start, which will be helpful as your business expands. Having someone on board as a tax advisor to help with planning is another benefit of hiring an accountant early on.
How to hire an accountant that fits your company (and budget)
Hiring the right accountant for your business can be a daunting task, especially when you're on a tight budget. Here's a step-by-step guide to help you find the perfect accountant without breaking the bank.
1. Identify the business needs
If your budget is limited, prioritize the accounting services you need most urgently. You can also ask potential accounting service providers for package deals, which may be more affordable.
Before making an offer, clearly discuss the accountant's job role and responsibilities to ensure you're on the same page. You can negotiate which services are essential and which can be handled by other employees.
2. Decide whether you need a full-time or part-time accountant
If your accounting needs are minimal, a part-time accountant might be sufficient. This is more cost-effective than hiring a full-time accountant, who would require a higher salary and additional benefits like a provident fund, workspace, health insurance, and bonuses.
If your budget is even tighter, consider outsourcing accounting services and paying on a pro-rata basis. This means you only pay for the services you use, and you can scale up as needed.
3. Make a list of interview questions
Before hiring, discuss the candidate's working style and preferred communication channels. Ensure they understand the job's roles and responsibilities. Prepare a checklist of essential questions to cover during the interview.
Assess the candidate's technical skills and software preferences. If your team uses specific accounting software (e.g., FreeAgent), ask if the candidate is willing to learn it if they're more familiar with other software (e.g., Xero).
4. Post a job on relevant platforms
Many online platforms allow you to connect with potential candidates. Post the job description on platforms like LinkedIn, Twitter, and your company's career page.
To attract relevant candidates, include detailed information about the job role, responsibilities, and required skills. Incorporating Interview AI in your recruitment process can help screen and shortlist applicants based on these criteria, making your search more targeted and efficient. You can also specify qualifications or age requirements. Once you receive resumes, contact promising candidates to schedule interviews.
5. Conduct onboarding formalities carefully
Thoroughly verify the candidate's background, especially if they'll be working remotely. Use third-party vendors if necessary. Contact previous employers and educational institutions to confirm their experience and qualifications.
Request copies of the candidate's identity documents (passport, educational certificates, degrees) for your records. Consider taking their photograph and fingerprints for additional security, as they will be handling sensitive financial information.
6. Look for referrals from friends and colleagues
Hiring mistakes can be costly, particularly in finance and accounting. An accountant will have access to confidential business information, so it's crucial to hire someone trustworthy.
Ask your friends and colleagues for recommendations of accountants they've worked with. Based on these referrals, you can then conduct a targeted recruitment drive.
Summing Up
Before starting the recruitment process, ensure your team is aware of your budget to avoid wasting time interviewing candidates whose fees are too high. You can even include a salary range in the job description to attract candidates who are a good fit financially.
Rest assured, there are many dedicated and passionate business accountants and accounting firms available. If an accountant still exceeds your budget, consider looking into online accounting firms.
