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E-Myth – “Why most small businesses don’t work & what to do about it”

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CFO Services | What Type Of Accountant Should Businesses Hire

Many entrepreneurs do not consider that there are different types of accountants that are available to hire says CFO services. As a result, entrepreneurs end up with an accountant that is not as experienced as is beneficial for them. Since 50% of all entrepreneurs fail in Canada, and the three most common reasons that entrepreneurs fail are not finding the right market for their product, running out of money, and not being able to hire the right staff, all of these things can be avoided the right business plan from the right experienced accountant.

Entrepreneurs should understand that not everyone who calls themselves an accountant has the same level of experience. CFO services says ultimately, entrepreneurs have a choice between an undesignated accountant and a chartered professional accountant. Businesses should hire the chartered professional accountant, because their schooling is so much more involved, that when they are ready to take on clients, they have more than just the theoretical knowledge that they get in university, they will also have significant amount of practical experience both through working directly with clients in an accounting firm, as well as by doing coursework.

After an accountant has completed their four-year undergraduate degree in business with a major in accounting, the next thing that accountants need to do in order to become a designated chartered professional accountants, is they have to get a job in an approved chartered professional accounting firm, and apprentice under the guidance of a chartered professional accountant says CFO services. They will be working full time for this accountant for three years, but also they are going to be doing coursework on the evening and weekends as well as taking tests. This coursework is designed to replicate typical accounting situations that entrepreneurs face. So in addition to the practical experience that they are gaining in the accounting firm, these accountants are also gaining practical experience through their program as well.

This pass rate for chartered professional accountants is very low says CFO services, with an estimated 50% that start program ever finish it. Therefore, entrepreneurs should understand that if they hire a chartered professional accountant for their firm, that they are extremely knowledgeable in accounting, because they have accomplished would only 50% of all accountants set out to do. This is extremely invaluable, and whether the entrepreneurs getting financial statements done, and want them done and accurately, or if they are creating a business plan is going to help them avoid the typical reasons why businesses fail, as well as coming up with a marketing plan is going to help them succeed, or whether it is a tax plan that they need this going to help them save significant amounts of taxes each year, a chartered professional accountant is the right professional for what they need.

CFO services says that when entrepreneurs are hiring accountant, they should ensure that there getting a chartered professional accountant because the level of expertise they have is going to significantly benefit their business regardless of what they need.

CFO Services | What Type Of Accountant Should Businesses Hire

There is a common mistake that many entrepreneurs make when they are first starting out in business says CFO services. In an effort to save money for their business, entrepreneurs often hire an accountant that is the lowest hourly rate. This is the wrong approach, businesses should instead be trying to find the accountant that has the most knowledge, the quality of information, or someone they can trust. However, entrepreneurs are trying to positively impact their business but often end up doing the exact opposite.

One reason why businesses who hire based on price often end up getting poor product is because accountants that charge a lower hourly rate are often charging less because they are an undesignated accountant. The lack about half of the schooling that chartered professional accountants have, and because of that, they end up with an accountant who might charge a lower hourly rate, but is less efficient and ends up taking far more time, charging an entrepreneur more than a chartered professional accountant would have charged to do the same job.

Another way that entrepreneurs end up with a poor product, it when they hire an undesignated accountant, is that undesignated accountants also lacked the practical experience to be doing efficient tax plans. Tax plans are some of the most important things that an accountant does for business. By helping them minimize the taxes that they have to pay to the government, entrepreneurs can increase the cash flow in their business, and avoid running out of money in their business. CFO services says that a great tax plan also helps an entrepreneur take money out of their business sooner so that they can start accumulating wealth for themselves.

When entrepreneurs are looking for an accounting firm that has a chartered professional accountant on staff, they should be looking for accounting firms that have the words professional association, or chartered professional accountants in the title. CFO services says that entrepreneurs can also look to see if the name has the letters LLP, CA, CGA, CMA, or CPA in the name. These are all indicators that the firm is owned by a chartered professional accountant, that an entrepreneur can count on them to be able to do efficient tax plans.

When entrepreneurs are hiring an accountant for their business, they should be looking for the best accountant they possibly can, because the additional hourly rate that they are charged by a chartered professional accountant, is more than made up for with an efficient tax plan. Business owners should avoid thinking in terms of small finances, by trying to save an hourly fee, when the right account and will be able to save them several thousand dollars every year. This savings is going to more positively impact an entrepreneur and their business then saving money on an hourly rate ever would have done for their business.