Edmonton Accountant | Accounting Fees For Small Businesses
There are many considerations to be had when choosing an accountant for small businesses says Edmonton accountant. Not choosing the right accountant, can end up costing the entrepreneur more money in the long run by an efficient tax planning. However, the problem is that most entrepreneurs don’t know what they need to know or need to look for when it comes to hiring an accountant. The only thing they know how to do, is look based on price, however price shopping can end up backfiring on a small business owner, because they may be hit with hidden fees later on, or end up not getting the service they were expecting or ending up with an accountant that is not helping them minimize their taxes. There are several questions that a business owner can ask in order to understand the accounting process, and find the information they need in order to make an informed decision on who to hire.
The first question, is understanding three different ways that accountants normally charge for their services. Edmonton accountant says most conventional way is the charge by the hour structure. The second most common way but much less utilized than the by the hour, is a flat fee per service – for example being charged one the four year end. The third way and the least common way is accountants that charge a flat fee every month for all the services they do in that month.
The second question is how does billing often create an adversarial relationship? This happens because the accountant gets paid more money if they take a longer time, and this leaves the business owner wondering if every time they phone their accountant they end up the higher bill, or let’s the business owner wonder if accountant is working on a service that they actually need in the first place. This erodes the relationship. Edmonton accountant says the business owner even avoids bringing important information and tasks to the accountant’s attention in order to minimize cost.
The third question is what is required before the accountant can provide a fee quote? Accountant needs to have a complete understanding of the business before they can offer price says Edmonton accountant. They need to understand how big the business is as well as number of employees and how much money the business is earning in revenue every year. They also need to know if the business is facing many challenges, or if it’s being audited. As the business owner growing the business or selling the business. Business owners should not trust over the phone that take no time to prepare, because there’s no way an accountant can accurately tell what that business needs without completely understanding first. By giving a price without that understanding, often means that the business owner will get additional fees placed on top much later.
By understanding what they should know when searching for an accountant, business owners can make the right decision for their business in order to end the best accountant they can get.
Often, when business owners are searching for accountants to hire their business, they are not thinking about the services they will acquire, you’re thinking about the prices they have to pay says Edmonton accountant. By putting this way, business owners may risk the lowest price that they’ve been quoted for the service, which can end up costing them in the long run not only with hidden additional fees, but by an efficient tax planning, they can end up paying much higher in taxes which is far more expensive than their accounting bill would be. There are several questions that a business owner should know the answer to in order to help make the best decision on what accountants they should hire.
Business owners need to know how flat monthly fees demonstrate that the firm is confident in their services. Edmonton accountant says that by charging a flat fee every month trust into the relationship. The accountant needs to be confident enough, that they are providing all of the services that a business owner requires, and the risk losing the client if they are unhappy with their services. This pricing structure demonstrates that an accountant is confident that they’ve quoted accurately, and allows the business owner to be able to bring questions or important tasks to the accountant’s attention without worry that it’s going to significantly increase their price.
The next question that business owners should consider is how do monthly flat fees improve cash flow for their business? This also allows a business owner to plan their cash flow, because are going to be paying the same amount every single month says Edmonton accountant. This is extremely important since 29% of all failed businesses cite that running out of cash was the reason for their failure. Being able to effectively plan cash flow in their business is very important.
The third question that business owners should consider when it comes to searching for an accountant, is that what items are often excluded from a per service flat fee? Often, a flat fee per service will allow an accountant to give the business owner price, and a low price at that, while allowing themselves to increase fees later says Edmonton accountant. Typical things that are often excluded from the flat fee structure is business planning, or calling up Canada revenue agency in order to ask questions. These additional tasks drive up the price, the accountant being able to save they were additional services.
By understanding all of the various questions that should be asked when hiring an accountant, business owners can search for an accountant that will give them all of the services that they require, at an extremely fair price. Business owners should also look for accountants that they will be able to have a relationship with that they can work together to do effective business planning, and minimize their taxes. With us as your business accountant partner, you will not have to ever worry about accounting again!