Questions to Ask An Accountant

March 15, 2012 By Leave a Comment

 

The relationship between a micro business owner and accountant is very important. As a new business owner, you have a lot to learn, so seek out an accountant with the heart of a teacher. Interview several accountants looking for someone that you understand. If you leave an interview more confused than you entered, keep looking. You should leave the meeting saying, “I learned a lot.”

Grill Your CPA

Ask an accountant these questions:

  • Tell me about your small business clients? Are they similar in size and industry? Any teenagers for clients?

  • Could you share 2-3 names as referrals?

  • How much do you charge?

  • How often am I billed?

  • What is included in your services?

  • What is NOT included?

  • How often will we meet? Where?

  • What do I need to bring to our meetings?

  • Why is bookkeeping important?

  • Explain the reports that I will receive from you.


Test Your CPA

A good accountant will explain difficult subjects in a clear, understandable way. Use a few test questions like these to see if your accountant communicates well.

  • What is depreciation? Why can’t I deduct the cost of equipment in the year I purchased it? (You can, and the accountant should explain something called a section 179 deduction)

  • What are the advantages of Limited Liability Incorporation? What does limited liability mean? When should I consider forming

    an LLC?

Need more information for your micro business? Check out my book, Money and Taxes in a Micro Business, to clear the confusion!

Carol Topp, CPA

Filed Under: Blog, Money & Taxes Tagged With:

Why a Business Might Fail

October 26, 2009 By Leave a Comment

My virtual friend, Meredith Curtis (she interviewed me about my other website HomeschoolCPA.com here) has a blog series titled Focus on Your Finances

In this post, Starting Your Own Business Part 1, Meredith discusses why a business might fail.

Warning: She offers straight talk that some people may not like, but she speaks from more than 10 years of experience in running her own small business and backs up her observations with several verses form the Bible.

I have seen these three things cause businesses to fail.

Self-Government

“Like a city whose walls are broken down is a man who lacks self-control” (Proverbs 25:28 NIV).

A business owner without self-control will not be able to run her business effectively. Self-government is simply the ability to run your own life well, control your emotions, manage your time, manage your money, maintain healthy relationships, and follow through with personal plans and goals.Without the ability to manage yourself, you will not be able to manage a business.

Scheduling

“Teach us to number our days aright, that we may gain a heart of wisdom” (Psalm 90:12 NIV).

Hard work is required to get a business off the ground. Hours and hours of work must be scheduled into your life without taking away from the priorities of family, church, and time with the Lord. If you cannot prioritize and schedule your life, you might let important things in your life and new business fall through the cracks.

Administrative Abilities

“Let love and faithfulness never leave you; bind them around your neck, write them on the tablet of your heart. Then you will win favor and a good name in the sight of God and man” (Proverbs 3:3-4 NIV).

Bookkeeping, accounting, record keeping, and other administrative tasks have always bored me, but I realize their importance in a successful business. You not only risk trouble with the Internal Revenue Service  (IRS) and other government agencies, but you can find your self in trouble with customers, employees, and vendors if you are not careful.

How about you?  Are you self controlled, in control of your schedule and able to handle administrative tasks? You may not be perfect in all those areas, but running a micro business can be a great way to learn those skills!

The lessons you learn by running a micro business will help you  later whether you open another, larger business or work for an employer. So, don’t be afraid to start if you lack some of the skills mentioned.

You can learn while you earn with a micro business. You will not fail!

Filed Under: Blog, Starting a Micro, You Can Do This Tagged With: , , ,