Factors to consider when selecting a certified public accountant (CPA), accounting services, or other financial professionals include these:

Services needed: List the services you think you need, such as tax preparation, financial reports, balance sheets, invoicing, payroll services, general bookkeeping, someone to set up your books or suggest cost savings. Some firms may handle it all, or you may need to split the tasks. And don't forget about Enrolled Agents. EA's are licensed by the Federal government to prepare tax returns and have either worked for the IRS or have passed a rigorous IRS exam. They are savvy tax experts, but generally don't have the degrees of CPAs and tend to charge less.

• Cost: Fees vary greatly, from $50 per hour to $300 or more. Some accountants will provide a specified list of services for a flat monthly fee, and may provide less costly help for bookkeeping and other tasks that don't require CPA-level training.
• Who will you be working with: If you are considering a larger accounting firm, find out which people you will be working with directly.
• Philosophical fit: Try to match your general philosophy with a firm that is as conservative - or aggressive - as you are on tax matters.

For many small businesses, the most common bookkeeping errors are the easiest to fix. Use these tips to help keep your business on a sound financial footing:

Use the right accounting system. Most businesses use either cash-based or accrual-based accounting. If you use the cash method, you count income when you receive it and expenses

when you pay them. Under the accrual method, you count income and expenses when they happen, not when you actually receive or pay them. This difference in timing is relevant only if your company keeps inventory on hand or handles transactions on credit. In these cases, the accrual method might be a better choice for your business. And in fact, if your firm has more than $5 million in sales or keeps an inventory, the IRS might require that you use the accrual system. In most other cases, however, the simpler cash system may be all you need. Check www.irs.gov for more information.

 

Do you really want to go another year doing business taxes and other accounting work yourself? Probably not. It's time-consuming and complex. Farm out that work with the help of accounting services, and your time can be better spent elsewhere in your startup business.