When to Hire an Accountant for Your Small Business

Key takeaways

• Recognize the signs you are ready, like complex taxes, too little time, or a loan application.
• Compare an accountant with a bookkeeper so you hire the right kind of help.
• Budget for the cost using an hourly rate, a monthly retainer, or a per-project fee.
• Choose an accountant by asking for referrals and checking relevant experience.

What do accountants really do for a small business?

An accountant is a financial professional who manages your books, prepares financial reports, and files your taxes. Beyond number-crunching, they help you stay compliant and plan ahead.

Their services may include:

• Preparing and maintaining important financial reports while checking their accuracy and compliance with laws and regulations.
• Ensuring your financial data is properly stored, updated, and managed.
• Filing tax returns and making sure that tax reports are submitted on time.
• Evaluating financial operations, identifying issues and strategizing solutions.
• Offering guidance on cost reduction, revenue increase, and maximizing profit and cash flow.
• Managing payroll, making sure all employees are paid on time, and that you have enough money to pay them.

Accountant vs bookkeeper: what’s the difference?

An accountant and a bookkeeper both work with your finances, but they are not the same. A bookkeeper records your day-to-day transactions and keeps your books tidy. An accountant builds on that work to prepare reports, file taxes, and guide bigger decisions.

Many small businesses start with a bookkeeper and bring in an accountant as things get more complex. Some accountants handle both roles for you.

Five signs you’re ready to hire an accountant

Many business owners handle their own accounting.

But, as your company grows, you may find you need the support of an accountant. Many small business owners even say that their accountant is their best business advisor. They are not as biased as friends, family, and coworkers and they have experience working with other businesses.

According to your current needs, you’ll know whether you should hire a full-time or part-time accountant. Here are some things they can help you with:

How much does hiring an accountant cost?

The cost of an accountant depends on your needs and their pricing model. Most small businesses pay one of three ways.

• An hourly rate for one-off help or advice.
• A monthly retainer for ongoing bookkeeping and support.
• A per-project or seasonal fee, often for tax filing.

Weigh the fee against the time you save and the mistakes you avoid. For many owners, that trade is worth it once finances get complex.

How to choose the right accountant

Need help finding the right accountant for your small business? Follow these steps.

1. Ask your network for referrals from trusted friends and colleagues.
2. Look for relevant experience across small businesses and, ideally, your industry.
3. Confirm the services they offer beyond tax and auditing.
4. Ask how they collaborate with tools you already use, like Melio for bill pay.

The right accountant frees you up to focus on running your business. Sign up for Melio to make it easy to pay bills and collaborate with them in one place.

Hiring accountant FAQs