Financial management is handling a company’s finances smartly and progressively. It also includes planning, directing, organizing, and controlling economic activities such as acquiring and employing enterprise funds. It is an essential aspect of a business. For a business to flourish, a company needs not only good finance but also good financial management. A company manages its finances by budgeting, accounting, forecasting, tax planning, risk management, etc. Managing finances requires meticulous planning that can only be done when the company knows its balance sheet well and has a good accountant who keeps updating the balance sheet regularly. You may stagnate in business if you feel lost regarding business fund management and proper accounting. Hiring a genuine accountant according to your business needs will save you from financial loss and help your business bloom.

How To Choose A Genuine Accountant For Managing Your Finances?

Finding a genuine and right accountant for your business is not an arduous task. However, before hiring one for your business firm, you must keep a few things in mind. 

Know What You Are Looking For:

Knowing what type of accountant you want according to your business requirement might solve half of your problems. First, decide whether you need your company’s external or internal accountant. If your firm is small, you might find it hard to hire an internal accountant due to the cost and low volume of financial operations. Therefore it would be wise to outsource it or hire an external accountant on a consultancy basis. Hiring a part-time accountant could also save the cost of the firm.

On the other hand, hiring an in-house accountant will be a good idea if your firm is big. Since accounting professionals differ in their area of specialization; for example, some specialize in tax preparation or bookkeeping. Others have broader experience, so you should hire one according to the company’s needs. 

Selecting A Certified Accountant:

Selecting a certified accountant will increase the person’s credibility and work. There are three types of professional accountancy certification according to educational qualification. A certified charter accountant is a licensed accounting professional with global recognition and works in finance, and does auditing, taxation, and general or financial account preparation. A certified management accountant advances in management skills and accounting expertise, and a certified public accountant has myriad duties, from providing insights into financial statements and reports to supervising the accounting process.

Relevant Experience:

Choosing an accountant with relevant experience in the accounting field might make the firm’s burden easy as the firm doesn’t have to train him after hiring. An experienced accountant should know how to maintain financial records and prepare the company’s balance sheet. He should also be aware of the applicability of tax rules and general accounting preparation. An experienced accountant is always good for the financial health of the company.

Technological Proficiency

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Numbers can be tricky to deal with. A minor mistake in the figure could lead to a disastrous outcome. But thanks to Technology. It has changed the way work used to be done previously. It has revolutionized many fields like accounting, science, etc. For example, accounting was considered a tedious job; now, with available software and tools, it has become easy to maintain the balance sheet, etc. A technologically aware accountant could finish his job in less time and be more error-free and efficient.

Use Recommendations And Social Connections:

Choosing a genuine, honest and trustworthy accountant with a clean record to share the financial data is imperative. Moreover, as the company’s financial information is confidential, it becomes essential to have a background check of the accountant before hiring him in your firm. You can use your online connection or social networking to hire a genuine accountant. Recommendations from friends or family members who are already in business can save you from hiring a scammer. 

Conclusion:

Managing a business firm’s finances is a crucial task. One wrong step might result in problems like dealing with a financial crunch, tax penalties, business losses, etc. Moreover, a company’s reputation depends on its finances, as it cannot function without its proper management. Hence keeping track of every financial transaction becomes mandatory. Moreover, it tells whether a company will be growing or become insolvent in the future. As an accountant, he maintains these financial tracks of the company. Therefore hiring a genuine and good accountant with relevant experience can save you from all financial troubles. 

We at BFG Accounting and Bookkeeping, LLC, provide our clients with the best accounting and bookkeeping solutions. Based on our client’s interests and requirements, our expert team offers abundant resources that help to grow business at affordable rates. Reach us to learn about our services.

Reference:

123financials. (2022, March 10). 7 Tips For Finding The Best Accountant. [Weblog]. Retrieved 29 October 2022, from https://www.123financials.com/insights/tips-for-finding-the-best-accountant/