3 Reasons Why You Shouldn't Hire An Unexperienced Accountant
By Erick B Carlson
When looking for an accountant, the first thing that most business owners look for is price. Price is important when looking for an accountant but it shouldn't be the only thing on a hiring manager's mind. Hiring an accountant that is going to be handling your financials for the next however many years is a big step and if you hire an unexperienced person to do the job just because you want to save money, you will probably do the exact opposite. An un-experienced accountant probably only went to school for it and has no real life experience.
Do they have a strong understanding of Credits and Debits?
Credits and Debits are by far the most important part of balancing your book or bank statements. Not only do your books have to line up with your bank statements but the credits and debits have to match up in various different areas such as balance sheet and journals. If an accountant were to record the wrong amounts in an area like, service revenue, you could be thinking you have more money coming in than you actually have. A lot of business owners make financial decisions based off the books and the bank statements and if any of these numbers were off, it could mean trouble for the business owner.
Have they worked for a company before or did they just graduate school?
If you are hiring someone fresh out of school you should be careful. School teaches you the ins and outs of accounting but what they don't teach you are real life situations. Yeah, they have some real world situations in the accounting books the students have to study and work through but having a real life situation happen and learning what caused it is the best way for accountants to gain experience in this field. I know everyone has to start somewhere but if your company has been in business for a long time and you don't have time to keep tabs on an employee, don't hire an unexperienced accountant.
Are they familiar with assets and liabilities?
Every good accountant should know that liabilities + owner's equity = assets, but the most important part of each of those areas is your payable and receivable accounts. Accounts payable and accounts receivable are the major areas where accountants have the opportunity to mess up the most. If an accountant were to record a receivable without recording a payable, even just once, it could ruin the books for the remainder of the year. Most companies do their books on December, 31st of each year and if any numbers are off during that year it will make a difference in the ratios that the company needs to make important financial decisions.
Hiring an unexperienced accountant can really mess up your books and financial statements that you need to make important decisions about the business's growth. Save yourself money in the long-run by hiring an experienced accountant that will make sure your books are always right, day in and day out.
Erick Carlson is a contributor to the website of one of the most professional and trustworthy company that offers Accounting Services in Phoenix AZ.
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