Finding a good accountant for your business based on the internet is no easy task. Sometimes even explaining what the internet is to some people can be difficult!
MetaFilter founder Matthew Haughey has a write up on finding a good accountant for online businesses at his [kinda] new blog, Fortuitous. Matthew strongly recommends a program called TurboTax, but also suggests that a real-life accountant can do wonders.
In the end, the big city accountant asked me the right questions and figured out a couple deductions I didn’t know I qualified for, and saved me $1500 below what TurboTax came up with. I probably could have gotten my TurboTax return to match but I probably mis-read one of the hundreds of questions lobbed at me during the online process. The local accountant I wasn’t a fan of turned out to be the worst option, coming up $1200 over my own TurboTax return. I suspect she left off a few business expenses I listed.
How to pick an accountant for your online business – [fortuito.us]
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I also suggest that people understand the difference between a bookkeeper, an accountant, a tax preparer, and a financial advisor.
A bookkeeper puts stuff into a bookkeeping system. Great and important, but may not be qualified to give you advice.
A tax preparer does your forms. Sometimes they give you tax advice, but sometimes they just do the taxes.
Accountants also come in various flavors. Some do taxes, some give advice, some do books, some give financial advice, some do audits — you need to make sure you have one that does what you want.
Financial advisors typically are giving personal financial advice, but some also give small business advice, and some will give you tax advice.
Just be sure you are getting what you want and need!
Great points!
Additionally, I always recommend that if you are going to pay someone to do the tax return that they have a license as a CPA, Enrolled Agent or Tax Attorney. That way if there is an issue you have the state licensing board to help you resolve sticky issues.
Make sure your accountant has experience with your industry, no need to pay for your accountant to learn.
Use their expertise to help you gather better financial data, monitor your business AND help you set up a good financial foundation so that you can focus on managing the business NOT tearing your hair out trying to figure out how to be a bookkeeper.
Thanks for the tips guys! Great additional information.
Every business needs an accountant.
Unfortunately a lot of them are “technology disabled” and it is hard to explain them what is online business.
I am glad that my accountant is a really modern person and we work together very well since 2003.
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