What Questions Should I Ask a Business Accountant?

Hiring an accountant for expert advice on your finances is a good idea if you own a business. So, before you schedule an appointment, here are a few questions you should ask your business accountant.

Do you have experience in the line of my business or industry?

Accounting and taxation are applied differently to businesses. As a result, it's fine to enquire about an accounting firm's or a business accountant's experience in your industry. Finding an accountant who understands you and specializes in your field can be extremely beneficial to your business because they will most likely be able to answer the specific questions your company will face in day-to-day operations.

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What kinds of records should I keep?

To file taxes, monitor profit, and secure external funds, you should review your business records and keep an up-to-date document. Keep a list of the following records on hand so that when your accountant asks for them, you can provide them right away:
  • Revenues – To keep track of your profit, always focus on the following areas namely, retaining existing customers, generating new leads, converting new leads to customers or new jobs, returning customers, pricing strategy analysis, and ways to sell more on every transaction.
  • Operating expenses – This may include rent, pieces of equipment, inventory costs, marketing, insurance, payroll, step costs, and funds allotted for research and development. Although operating expenses are unavoidable, this is necessary for most businesses, and ways to reduce them should be determined while still maintaining a competitive advantage. 
  • Tax remittances – Tax payments from appropriate government agencies
  • Wages of employees/payroll
  • Asset purchases and sales

What type of structure is best for my business?

Knowing what type of business structure you have is important for your tax liability. Here are the four types of business structure:

A sole proprietorship is ideal for businesses that only have one owner. The legal entity of the owner and the business is the same, hence, the owner is liable for any debts.

If you have a business that’s owned by two or more people, your business has a partnership type of structure. Just like a sole proprietorship, the owners and business partners are responsible for all company debts.

A corporate is another type of business structure that has a legal entity that is separate from its owners. Therefore, the owner’s personal assets will not be affected if the company has acquired debts.

A limited liability company or LLC combines limited liability features of a corporation and tax efficiencies and flexible operations of a partnership. Personal assets of owners are not affected by the company’s debt and owners share tax responsibilities. 

These types of structures will be discussed with you by your accountant to help you decide what is the correct legal structure for your business. 

What is my break-even point?

Break-even points are your costs or expenses divided by the revenue per unit minus the variable costs involved with a product or service. Your accountant can help you determine this by using various measurements. Understanding your break-even point is essential for your company’s profit and loss. It will help you regulate the pricing of your product and services. Have your accountant review your financial records to help you decide how many products can you sell to cover the costs. 

How can I best communicate with you?

To get the most out of the advice you can get from an accountant, you need to know whether you can meet in person or online. Many accountants are opting for online-only work as of 2020 unless in-person meetings are absolutely required due to COVID-10. Constant communication with your business accountant is essential as a business owner, especially if you're just starting out. Inquire with your accountant about how frequently he recommends a meeting to discuss taxes. The more frequently you communicate with your accountant, the more likely it is that you will receive advice that you may not always want to hear, but which you will always need to hear.

Looking for a trusted CPA firm in El Paso, TX?

Are you looking for a Business Accountant in El Paso? If you have any questions regarding small business accounting, forensic accounting, tax problems, tax planning, nonprofit accounting, payroll tax, etc. give our firm a call!

Marcus, Fairall, Bristol + Co., PLLC
Full-Service CPA Firm
230 Thunderbird Dr Ste G
El Paso, TX 79912
Phone: (915) 775-1040
Email: info@marcfair.com


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