More and more people are recognizing the need for accountants. In the past accountants were thought only to be useful during tax season. However accountants are now finding ways to provide value in managerial, audit, bookkeeping and other roles. Below are some important items to consider when looking for an accounting hire.
Determine Your Needs
When you’re going to hire an accountant, make sure to thoroughly examine your objectives. Is your company in need of tax help? Or are they looking for an internal accountant who can help prepare the company for the external audit at the end of the year? Some accountants are cross-trained and will be able to help your company with auditing and tax. Note: these accountants are rather rare as most of them tend to specialize in one area.
Another important consideration is experience when you hire accountants. The more experience the accountant has, the more you will have to pay for him or her. And believe me, after they’ve had five years of experience with one of the Big-4 they are not cheap to hire. If the company you work for has a good system in place and good training programs, then it may be less expensive if you hire an accountant straight out of college and train them.
How much does an Accountant Hire Cost?
As was mentioned above, an accountant that has five years of public accounting experience is going to run your company around $100,000 a year. Newer accountants are usually paid $40,000 to $60,000 depending on the cost of living of an area.
When looking for an accountant, you will want to make sure that the person is someone that you respect and that you can get along with. One way or another you’re going to have a relationship with your accountant. You’ll want someone that will listen to you and be able to generate reports that will be helpful to the company. You’ll also want someone with a backbone that will stand up and tell you when a part of your business isn’t in compliance with accounting rules.
Do I need a CPA?
Whether or not your company needs a CPA really depends on the services you are looking for. If you’re planning on taking the business public, then the company will definitely want a CPA. If the company is simply looking for someone to help with bookkeeping or financing, then a CPA won’t be necessary. The difference between a CPA and a non-CPA is one exam.
If your company is only looking to hire an accountant for part-time work then you’ll likely be working with a firm that does accounting work. Make sure to check with the firm which type of employee will be doing the work. If it is a Jr. level member than you shouldn’t expect to pay as much. If a partner of the firm is doing the work, then expect to empty your wallet.
One other thing you may want to consider is the size of the firm. If you’re a smaller company, then you probably don’t need to hire one of the Big-4. As a general rule it is best to match your company’s size with the size of the firm that will be doing your accounting work.
In summary when looking for an accountant hire, make sure to understand your accounting needs, hire someone with the proper amount of experience, recognize the difference between CPA’s and non-CPA’s and match your firm size with the potential accounting firm size.
