Choose the right Accountant

Accountants are more than just individuals who do your yearly taxes. They can advise you a long list of other services, which may include advice on your accounting system, financial, retirement, estate and tax planning. They are part of a business owner's professional team along with a banker and lawyer.

Ask for recommendations

Your local chamber of commerce will tell you the names of chartered accountants who are members. When you attend any type of meeting, or meet other business owners, ask for their recommendations.

Use the 60 per cent rule

If you're a business owner, pick an accountant who has 60 per cent of his or her business coming from business owners like you. Such a person is more likely to keep up with the laws regarding the sort of clients they deal with most often. If you're a corporation, make sure that the person specialises in corporate accounting, including financial statements and audits.

It is important to interview accountants

Ask what type of services they do for their clients, how long they've been in business full time, and for referrals. Don't forget to ask to see their professional qualifications. Ask them about the benefits of choosing them over another.

Rates

Ask about any prospective accountant's rates and what those rates include. If they have a rate chart, all the better. You need to know what their hourly rate is and what the cost would be to answer any questions you have during the year. Ask too about record keeping. It is helpful to know what computer program they prefer you use for record keeping - it will be on this that your records are kept - and why they prefer that program. Often, it can save you some money if you use the program they suggest because they can use your data files directly. Some accountants even have programs they'll set up especially for you.

Remember to bring your records to the interview

That means a copy of at least one year's tax return. This way prospective accountants to your business can give you educated guesstimates as to what their services will cost. If you want to save some money, ask how accountants want your paper files. If you bring these to them in shoeboxes - hey, many folks do - you will pay to have all that information deciphered. You can save money if you separate the information the way the accountant suggests.

Corporation v Individual

Are you interested in hiring an accountancy firm or one that has his or her own business? If you opt for the firm, find out if you'll be dealing with one particular person or if it will be with whoever answers the phone when you call. It's best to have one person to build a relationship with.

And Finally...

One final question for the interview is finding out when your accountant or firm works. It's important to know that you can call them at hours that are convenient for you. Before making a decision, interview at least three accountants. Don't rush the decision. You need to make sure you have the best accountant and bookkeeper for you and your business.