Small Business Advice Blog
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February 27, 2010
What to have when hiring a new Accountant
Below is a list of data you should have when you hire an accountant. If you want to minimize the time it takes to get started processing your financials, having this information is imperative. Too many times I have run into individuals I have to go back to over a period of weeks or months just to get the start-up information I need to get them their first set of financial statements, which should be processed monthly. I can’t do anything without some of these items and having them ready allows for a smooth and quick transition.
Bank Statements
Be sure that all the information necessary is attached. (I.E. copies of checks, all pages, etc) I would have them going back to the beginning of your fiscal year and if they require you bring more, ask how far back they are needed.Business Check Register
Your accountant should NOT enter data based on your bank statements. Bank statement can be wrong. This is why I require that my clients bring me a copy of their check register. I need to be able to check this information against what the bank has. This also takes outstanding checks and deposits into account. This is all very necessary to keep balanced and organized financials.Access to ALL online accounts
It is up to you, your trust level, and the type of services you are hiring out if you want the individual to have access to your online accounts. Many of my clients ask that I not only keep their financials, but make payments for them through their online system. I also ask that my clients grant me access to vendor online accounts as well. Rather than calling my client every time I need to check on accounts to pay, I can access the account myself and there is no need to bother my client. Again, it depends on trust and level of service.Deposit Slips
When you make a deposit it can include many different amounts from various customers. A deposit slip helps to check this information against the bank statements and your check register. The more ways to check your information the better chance of having accurate and timely financials delivered to you.Receipts from purchases
Keep ALL receipts. This is the best back-up you can have for expenditures. Be sure to keep notes of their purpose and any additional needed information. Items over a certain dollar amount, your accountant should explain the depreciation schedules and the necessity of utilizing depreciation in your business.Credit Card Statements
Just like a Banking Statement, this is necessary to book expenditures, check against receipts, and against any register you might be keeping. Be sure to keep these over time. A good rule of thumb is 3-5 years.List of Assets
Keep a list of all major assets, purchase dates, amounts, and how they are used. Depending on amount, many of these items should be depreciated over time. Speak with your accountant about the process and use for this area of accounting.Any Loan Statements
Bring as much detail as you can about outstanding loans. Be sure to let your accountant know if you have had any restructuring of your loans as well as these will affect your taxes. If a restructure of your loans include any forgiveness of debt, this could be considered taxable income. This is important as the bank will report this information and your taxes need to match the information submitted to the IRS.Detail on all Accounts Receivable
Accounts Receivable is basically amounts due from customers or clients. Normally the terms are Net 10, 15 or 30 days. You need to have customer/client names, dates of sale or service, and amounts outstanding included in the information you bring to your accountant. This will all be necessary in the collections process. Be sure to note any and all amounts over 30 days. Delinquent accounts should be collected as quickly as possible to lessen the risk of bad-debt write-offs.Detail on all Accounts Payable
Similar to Accounts Receivable, this is basically amounts due to vendors. Again, normally the terms are Net 10, 15, or 30 days. Please include Vendor Name, Date of sale or services, and amounts outstanding. Be sure to note if you have any overdue bills and explain the reasoning behind this. Do not EVER try to hide this information from your accountant. We are there to help you; NEVER to judge. If you feel that this is the treatment you will receive from your accountant, you are in the wrong place.Payroll Detail
If you have employees you need to give this information to your accountant to the extent of the services you are requesting. If they are NOT processing your payroll, you do not need to give details on the employees, only the details on the amounts paid and withheld. If they are processing your payroll, they will need Employee Names, SS#s, Addresses (Up-To-Date), Contact Numbers, Benefits, Dates of Hire, whether they are Full-Time or Part-Time, and copies of all employee paperwork (Includes W-4’s, state forms, I-9’s, benefit enrollment forms, etc)Personal Funds to Company
Be sure to note any personal funds brought into the company and in what form they were brought in. This means that you need to say if you made deposits into the company bank account, paid bills out of your personal account, made purchases through a personal credit card or bank account, etc.
All of information will allow for a quick and smooth transition to your accountant. If you do not have this information it could take quite a lot of time before your accountant can start pulling financial statements together for you. There is no reason to pay an accountant if you can’t get information back. Help yourself by having this information ready.
Carter Services Plus offers accounting services, bookkeeping services, payroll services, training, marketing advice, tax preparation services, and consulting among various other financial services. Please feel free to call us to set up a FREE consultation to review your current financial situation or to find out if we are the right fit for you.
