You Should Be Hiring an Accountant in Hong Kong the Proper Way
One of the proper ways to hire an accountant is by interviewing them. For a lot of small businesses, hiring the right accountant is crucial and a little daunting. It seems like accountants are quite all the same but the majority of business owners know that is not true. While choosing an accountant is a vexing process, it is a lot simpler if you know what to ask them. In order to help you with hiring an accountant in Hong Kong, there are questions given here so that you can use them or get a head start in formulating your own questions.
What are the Fees You Require?
Ask how the accountant or the firm bills their clients and what options are available. The majority are going to charge hourly but they can also charge monthly and find out what is included. A CPA might define it as posting the cash receipts and accounting software disbursements. On the other hand, there are others who might include journal entries monthly, bank statement balancing, and printing the profit and deductions report you need. The rates should not only be the determining factor when you are hiring an accountant or a firm; you only have to know about the expectations.
What is the Best Way of Communication for Us and How Often Should We Talk?
This question might seem too simple but effective, frequent and clear communication is the main thing to have a healthy relationship with your accountant. Establish starting this time the frequency of your communication, either over the phone, in person or online. You can both decide if you will meet bi-monthly, monthly, or weekly.
Will You Be Able to Represent Me if I am Audited?
No one wishes to experience this, but in case you do, your representation should be a good one. CPAs and tax lawyers are qualified to be your representative when there is a tax audit, but take note that not every accountant is qualified. If you consider going with the accountant, find out the number of tax audits they have already participated in and their success rate. You may never experience getting audited, but like insurance, you will choose an accountant who is experienced with auditing just to be sure. If the reason why you are being audited is that of tax fraud or evasion, you should talk to a lawyer.
Are You Experienced in the Kind of Business I Have?
Know about the accountant’s experience regarding the kind of business you have. Not all types of business are handled in the same way from the tax standpoint and accounting, and an accountant who understands your business is an edge. For instance, if your profession is in the healthcare industry, your accountant should have knowledge about accounting the patient receivables and valuing the equipment.
Will You Be Able to Help Me with My Cash Flow?
Proper projection of your business cash flow is as important as making a mission statement that will impact the people and sticking by it. Cash flow projections are tedious and they are not easy to handle, but accountants are hired for that too.
Your accountant must have the ability to help you in developing an effective and organized cash flow projection. The accountant should let you make adjustments in your operations so you can survive shortfalls. In addition, you should also be able to improve on the receivables you have and management of payables.
How Do You Plan to Help Me During Tax Season and Survive it?
Untangling the difficulties of tax preparation is usually the reason why small businesses get an account. You are going to want to ask about the tax credits and any deductions that you need to claim. Also, you should also ask the accountant if there are current tax laws you must take advantage of in order to maximize write-offs.
You should get answers regarding the tax questions you have before the filing deadline. If you want to stay away from the rush during the year-end, involve your accountant when you collect all important accounting documents and data.
Is There a Time When You Helped with Cost Reduction at a Previous Job?
Every accountant should know how to do cost reduction. That is one of the main reasons why they get hired by employers. Ask the accountant to talk about a time when they unexpectedly reduced costs through their diligence or personal innovation. A professional accountant should have the financial details about their success and ask them to elaborate on it. This way, you will know how effective the person is as an accountant and how your business is going to benefit from hiring him or her.
Can You Tell Me About Your Tax Philosophy and Priorities with Tax Planning?
You need to have a direct discussion of your accountant’s tax philosophy. Is this accountant assertive, cautious, or aggressive when taking deductions? There are good points that are useful examples like the travel expenses and deductions in your home office. The style and philosophy of your CPA need to match yours. If you do not feel secure with the philosophy of this accountant, look for others. This is going to impact your taxes and the working relationship you have with them if you do not agree on this, which is why philosophies are very important.
When you are hiring an accountant in Hong Kong, make sure to ask all of these questions because it will determine if this person is the right fit. Aside from that, accountants are expensive and your money should not go to waste by being paid to the wrong person.