| HOW CAN AN ACCOUNTANT HELP?
Accountants are skilled in the practices and procedures of their profession. An independent accountant in public practice offers his or her services to a variety of clients; by contrast, a staff accountant provides services on a full or part-time basis to just one employer.
The notion of “independence” is important for the accountant in public practice. It indicates that the accountant lacks self-interest or bias in the formation of professional judgments and can bring to the client complete objectivity and integrity in the performance of professional services.
WHAT SERVICES DOES AN ACCOUNTANT PROVIDE?
The following are just some of the services the professional accountant can provide:
- Accounting
- Advice on financial matters
- Bookkeeping
- Budgeting
- Business plan development and review
- College education planning
- Computer systems design
- Cost studies
- Data processing
- Estate planning
- Financial planning
- Financial statement preparation
- Insurance planning and risk analysis
- Investment planning
- Liaison with bankers and other lenders
- Management advisory services
- Payroll services
- Pension plan administration
- Retirement planning
- Tax planning
- Tax representation before government agencies; and
- Tax return preparation (income, payroll, property, sales, gift, estate/inheritance, and special business tax returns required by Federal, State, and local governments).
HOW DO YOU CHOOSE AN ACCOUNTANT?
Now that you know many of the important and varied things an accountant can do for you, you need to understand how to select an accountant who's right for you. This is never an easy process, and – to be fair – it can be highly subjective. Using the “Four E's,” however, can make the process easier and improve the outcome.
THE FOUR E'S: EDUCATION, EXPERIENCE, ETHICS AND ENDORSEMENT Education.
It's important that you understand an accountant's educational background, including his or her credentials. Again, while special titles or letters after a person's name don't tell you everything you need to know about an accountant, they can be good evidence of a solid educational background. Don't read too much into the absence of credentials or designations, but do make intelligent inquiries about every accountant's educational background. Because the world of business, finance and taxation changes rapidly, it is essential that your accountant demonstrate a commitment to what the accounting world calls “continuing professional education.” Be sure a current and ongoing regimen of continuing professional education is part of your accountant's practice.
Experience.
The cumulative professional experience your accountant brings to your business is likely to be his or her most valuable asset. You should be certain that your accountant has both adequate experience in general and specific experience appropriate to your business needs in particular. Keep in mind, however, that experience is a double-edged sword. An accountant with significant experience is entitled to charge higher fees for his or her services. It therefore behooves you to engage a professional who has the experience your business really needs.
Ethics.
Ethics are the bedrock of the accounting profession and sterling ethical behavior is every accountant's stock-in-trade. Nothing is more important to an independent accountant than the integrity, objectivity and impartiality he or she brings to each and every client. Accordingly, the accounting profession takes violations of its ethical norms very seriously. It is important that you work with an accountant who is pledged to a code of ethics.
Endorsement.
The endorsement of another satisfied client is any accountant's most gratifying achievement. In selecting an accountant for your business, it is appropriate to ask for and speak with other clients in order to obtain this endorsement. The recommendation of your own friends or business colleagues is also a reassuring source of endorsement.
If you have trouble finding an accountant through referrals, contact a state or national organization that serves the accounting profession. The Missouri Society of Accountants is one such organization.
NATIONAL SOCIETY OF ACCOUNTANTS
The National Society of Accountants (NSA) was founded in 1945. It is an individual membership organization representing accountants in public practice. All active members must meet initial educational and experience requirements. Thereafter, they must meet annual continuing education requirements and adhere to a strict Code of Ethics and Rules of Professional Conduct in order to maintain their active membership. NSA's members provide accounting, auditing, tax, and/or management advisory services to an estimated 4 million individuals, small businesses and government entities nationwide.
Business Dynamics is a member of the Missouri Society of Accountants. |
