This post has been a long time in the writing. It is controversial but I believe this must be said.  I’m not writing this to put down every accounting professional out there because I think you should only hire me. While I likely have the expertise to help your business, I may not be the best accountant to work with you for various reasons. I’m okay with that. There are some great accountants out there and I’d like to help you find the right one for you.

Change is inevitable, but that doesn’t mean all change is good. I confess that I am angry with my chosen profession over some of the changes I’m seeing because I believe the changes don’t benefit you, the business owner. In fact, I think some of the changes are hurting you and that’s why I wrote this.

Technology has brought automation to bookkeeping tasks, especially data entry. Automation can help with consistency. Does that mean all bookkeeping tasks can be automated? Absolutely not. Running a business is complicated. Yet there are those perpetuating the myth of the effortless, automated (via technology, not outsourcing) business. If your business could be fully automated, how would you stand out to customers? What would make your business special? But I digress.

The short answer to how you hire an accountant that won’t wreck your business is to ask questions and listen carefully to the answers. That may sound obvious, but few ask me these questions.

Be sure to visit the website and LinkedIn profile of any accounting professional you are interested in working with before meeting with them.

How did you become an accounting expert?

Did they earn a college degree in accounting, certificate, CPA (certified public accountant), CMA (certified management accountant), MBA (masters in business administration), CPB (certified public bookkeeper)? Was it a two or four-year program, or a certificate earned in weeks or months? How are they keeping up with changes in the accounting profession?

Note: The Quickbooks ProAdvisor and Xero Partner certification exams focus on demonstrating knowledge of the software, not accounting theory.

Immediately follow-up the education question by asking about their experience – public accounting (CPA), private industry, etc. What you are listening for is how they learned to apply the knowledge gained from their accounting education. Have they set up accounting systems, fixed accounting problems, worked with entrepreneurs, have worked in your industry, etc.?

Why should you ask these questions?

Here’s where things get controversial (in case you were wondering).

What I am saying is that hiring someone with no knowledge of accounting theory can quickly destroy your business finances. (No, that’s not fear mongering. It’s fact.) Remember my business is called Fix Your Accounting. One of my specialties is fixing broken bookkeeping. I’m seeing a whole new level of broken bookkeeping and I believe it’s due to the “start your successful bookkeeping business in 12 easy steps with no experience necessary” myth making its rounds in the online world.

What are you going to do and when?

Ask exactly what results you can expect from them and when. Are they going to enter transactions and reconcile the bank accounts? How often are they going to do the work? Provide financial statements and meet with you to discuss them? Process payroll and file payroll taxes? Recommend changes to your workflow? Point out ways to increase profits and reduce expenses? File sales tax returns? File income tax returns? Serve as an advisor to help you make solid financial decisions? Be crystal clear on this.

Consider the needs of your business. Do you want to work with someone who will help you leverage technology and gain efficiencies? A rapidly growing start-up will benefit greatly from an experienced accountant who can quickly get systems in place as the business grows. On the other hand, a stable business may do well with a less experienced bookkeeper who can maintain the systems already established. If you are not comfortable reading and understanding financial statements, hire someone who will teach you. You’ll be glad you made the investment.

Accounting is about accountability

It’s easy to claim you are not a numbers person and dump your bookkeeping on the person you hire. As a business owner, you are ultimately responsible for everything that happens with your business. I’ll say it again, learning to read and understand your financial statements is vital so you know whether your business is succeeding. Reading your financial statements is also how you will know if your bookkeeping is being done correctly.

The accounting professional you hire should be whomever you feel will help you move your business forward and have honest conversations about your business finances.

Should you be afraid to hire an accountant? Of course not. Buyer beware is nothing new. The myth of the set it and forget it, effortless business has caused many to let their guard down. Regardless of who you hire, stay involved and keep asking questions. The success of your business depends on it.

[By the way, you can see my LinkedIn profile here.]