Talking Cents

How Much Should You Be Paying Your Accountant As A Small Business Owner?

Small business owners are very particular about who they hire. This is because hiring an employee is not only about giving a consistent salary but also providing benefits, bonuses, increments etc. Moreover, an owner needs to trust his employees with certain responsibilities. One such crucial employee is the accountant. The decision to hire an accountant is challenging in its own right. This is because many business owners struggle with the question of whether they need an accountant in the first place. After all this, the next consideration is how much should you pay the accountant for his or her service. The answer depends on multiple factors. The credentials of the accountant, his or her experience, and the contribution of the accountant in the growth of their previous employer, all factor in together to determine the accountant's fee. Here are four major considerations to make before deciding on the salary of your accountant.

Credentials

The basic criterion of judging any personnel for their matter is their credentials. The college from where they earned their degree, their academic performance, and even how well they present themselves in the interview are crucial factors to determine the salary of an accountant.

Experience

The experience of any individual plays a crucial role in the recruitment process. This is more critical for an accountant. This is because accountants handle the financial aspects of any business. Their expertise determines whether hiring them improves revenue growth by 5% or 20% each year.

Portfolio

Experience is important but an impressive portfolio of other clients who benefitted greatly from doing business with the accountant increases their evaluation. In such cases, the accountant can demand higher pay. It is for the business owner to decide if he or she wants to pay a competitive package to the accountant or find another one.

The Type Of Service

There are many types of services that an accountant can provide. These range from bookkeeping, financial reporting, tax filing, cash flow forecasting, financial accounting, performing risk analysis, etc. Based on the importance of the task for your business and how many services you are receiving from your accountant, you decide on his or her salary. You can always negotiate with the accountant. However, an accountant can be a great investment for your small business if you find the right one.

Consider MAS Partners For Your Small Business Accounting Needs

MAS Partners have decades of experience in troubleshooting financial problems for small businesses. Our small business accountants in Sydney and Zetland can help you reach your financial goals, improve your cash flow, and help you with managing your bookkeeping. To know more about our services, contact us here.