Hiring an accountant? Consider these three things first.

Investments. Generational wealth. Business... money. 

It seems like money is all anyone talks about anymore. However, the truth is.  Money management opens a lot of doors, the most important being FREEDOM. Most people are starting a business or going to work every day purely for me. We’re all seeking the freedom money can buy. The choice to sleep in because our bills are paid. Those choose to send their children to certain schools, or vacation in a certain fashion. Even if you chose to live a simple, modest life, it's nice to be able to do that in your way. Being financially sound is the best way, and the kicker is, you DON’T have to make a ton of money. 

Okay, let's be honest, making more money makes it A LOT easier to set yourself up financially. However, until you can make more, the other cheat code is being smart with the money you have. Whether you think you make a little or a lot, it's important to manage what’s coming in, where it's going. That way you can determine how you can use that to create more. This is why it's important to pay attention to accounting. 

Accounting is the process of recording financial transactions about a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows.

An accountant carries out these duties for your business or personal finances. 

Even if you don’t plan to hire an accountant, it is good to know how accounting works. That way, when you are ready to hire, you know what to look for and what to expect. And yes, you should consider working with an accountant for both your personal and business finances. Whether business or personal, a good accountant will pay for themselves. Meaning they can find the cracks where money is slipping through as well as find investment opportunities that are good for business, and essentially increase your income. 

Business accounting refers to the tracking of revenue, expenses, debt, and assets of your business on a daily, weekly, or monthly basis. Aside from making sure your finances are in order, the role of a business accountant is to make your job easier by taking responsibilities off of your plate. The true hack to having a thriving business is knowing what responsibilities to handle yourself, and which to delegate. There are so many levels to finance and accounting. An accountant is probably one of the best investments you'll make into the business. In addition to revenue and expense-related tasks, keep in mind, you also have to worry about taxes and potentially being audited. Bookkeeping is the other essential part of hiring an accountant. Keep your numbers in order and audits can be avoided or easily handled. 

Personal accounting is a bit of a different beast, but essentially the goals are the same. A personal accountant looks at your finances and ensures you aren’t living above your means. While that might sound abrasive, you might be surprised at what you can accomplish with an accountant. Your financial goals may seem unavailable, but working with an accountant creates the possibility to change that. 

Be it purchasing a home, or saving for your children's future, an accountant looks at those big financial goals and creates a plan based on your income. Perhaps you’re overspending in some areas, or are being charged for something that's gone unnoticed by you. An accountant's job is to not only find those discrepancies but to identify the right financial opportunities for you and your family. 

Whether personal use or business use, an accountant comes with a lot of benefits. IF you are thinking about hiring an accountant, here are two things to consider:

Find an accountant familiar with your niche and industry. The accounting field is vast. Aside from just business and personal, there are different types of accountants that specialize in various fields. For example here at MATS, we specialized in Beauty Brand Accounting. Find one that is familiar with your industry. It’s smart to do this for several reasons. One is that if you’re hiring “help” you probably want someone that knows more about their area of expertise than you do. Most people probably don't want to have to explain how certain tax laws are applied to their business when they've hired a professional. That probably wouldn’t make you feel very secure. Ask other contacts in the industry for suggestions, and if all else fails Google and Reddit reviews can give a view. 

Determine what services you need, and what the accountant offers. Because many people don’t have a working knowledge of accounting/bookkeeping and all that they entail, it's best to get as much clarity as possible on about services. Many accountants will offer something like a fresh consultation where in addition to explaining their offered services, they will make suggestions. Is this person assuming an advisor role, or are they actively managing your books? These are all things you should think about and outline in a contract. 

Have a goal going in. Of course, this goal can and will change as you work with your accountant. He or she may look at your finances and determine that certain goals should wait or other financial goals make more sense. Either way, having a preliminary goal is a great starting point. Not only does having a goal help your bookkeeper determine the best plan of action, but it also helps you in the process of selecting a bookkeeper or accountant. 

If you’ve been through these three steps and are ready to move forward with getting your business or personal finances in order, let’s talk. At Madison’s Accounting and Tax Services, we specialize in Beauty Industry Accounting, but part of our mission is to increase financial literacy and watch our clients reach their financial goals. We’d love to help you too. Again, nobody wants to make money for the sake of just making money. Financial freedom is the goal. Starting setting yourself free with us. 

Thanks for reading. Madison’s Accounting and Tax Services is a financial service provider that specializes in helping beauty brands control and grows their financial power, while also passionately providing financial knowledge and resources to communities in local Midwest communities. If you enjoyed this blog please subscribe and share.

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