• The 5 Types of Accountants

    I have hired a lot of accountants in my time and if you are going to become a profitable business owner you two are going to have to hire an accountant so who do you hire an accountant so who do you hire.

    You have got

    • Bookkeepers and controllers
    • Accountants
    • CFOs
    • CPAs

    I mean the list is endless and so today we are going to talk about which kind of accountant you should have for what circumstances is?

    The Profitable Entrepreneur

    Today we are helping you with step number one of becoming profitable in your business you are going to need an accountant now you don’t have to hire us can you hire in-house so we are going to talk about that if you hire a how should you get because there is a lot of options and there is a lot of different budgets out there that you need to be aware of so you don’t get the wrong person for the wrong job.

    The first person you are going to hire is your bookkeeper now this is the data entry specialist depending on where you live you are going to pay a different amount to this person so if you live idle.

    For example:

    You might be on the lower end around eighteen to twenty thousand dollars a year but if you are in NEW YORK or California you could be upwards of forty thousand or even forty-five thousand dollars a year so know that this person serves a specific role, they are not going to be strong and creating reports for you or doing business analytics or accounting processes.

    Their job is to get data into the system and if you are a new entrepreneur this is likely you you’ve been doing this yourself so this is a good option to offload some of the heavy kind of you know grunt work of accounting and allow you to begin analyzing some of the reports a good hire for anybody that is ready to expand their business but not really ready to invest in the high top their accountants.

    just yet the next level up guys are the accountant now a lot of people think bookkeepers and accountants are the same thing they are not it’s very different and you are going to pay a different amount for somebody that’s an accountant so here’s how it works your bookkeepers has been putting data into the system all month long your accountant typically is helping to oversee that process and then at the end of the month.

    They are doing some of the heavier lifting tasks which require you know reconciling your trial balance making month and journal entries doing some of the accrual work that’s going to need to happen in your financials if we are going to be right and, in some cases, they help create the financial statements but not always but they are at that month-end position.

    Now for and I count it depending again on where you live can expect to pay anywhere from maybe thirty thousand dollars up to sixty thousand dollars that’s probably a fair range for somebody in this world next level up is the controller now, I love to doing controller work as I grew up in my career.

    This process of overseeing the whole accounting system you get to orchestrate what’s happening and when you are making sure that data is getting into the system on time does the month is journal entries are happening on time and you are really responsible for the final product.

    That’s coming out of the accounting system this is the balance sheets the income statement the cash flow statement those kind of documents rest on the shoulders of your controller now this is a more expected accountant and it should be because this person needs to have a good amount of experience should have completed several at you absolutely at least a bachelor’s degree in accounting if not getting into their master’s degree and having completed that expect to pay anywhere from the very low-end 5045 thousand up to maybe seventy five thousand for this person I have seen it at eighty five thousand actually for certain areas of the country.

    Now we are going to talk about the king or queen on top of the mountain this is your CFO Cf o stands for chief financial officer they in fact hold a c-suit position in your company this person’s expensive you want to be careful.

    When you hire a CFO because not all CFOs are created equal everything up to this point has been really task-related focusing on just journal entries and debiting and crediting but when you step into a CFO role this requires strategic thinking and not all accountants have that capability, they are not able to see the big picture and create plan that our business development related but that is what a CFO should be doing in to be taking all that work.The rest of the team is doing and translating that into your goal as the entrepreneur to make sure that we are hitting the targets.

    So, a CFO you can expect to pay anywhere from seventy-five thousand to two hundred and fifty thousand is typically what I have seen nationwide for somebody alright guys last but not least is the CTA the CTA stands for certified public accountant this is the person that almost all of you probably have in your life right now if you have started your company you know that you need a tax guy.

    I lift the CPA his job to do two things really one is to prepare your tax strategy to take everything you are doing throughout the year and prepare it so that you are not spending more than you need to and to and giving it away to the goal but number two CPA.

    Often feels the role of an auditors where they come in as an independent party and they make sure that your books are accurate and clean and actually reflective of what’s happening in the real world and nobody’s cooking the books so if your CPA ever fills the role of your auditor, they are not allowed to feel any of other accounting rules.

    It would be breaking those of the laws of accounting really so be aware of that now what I do see happening a lot of the time in businesses as I consult and engages them is, they are actually using their CPA for lower-level functions you know so using their CPAs yes to prepare their taxes but also to do their bookkeeping and their accounting work and they are their customer controller and CPAs.

    Sometimes will take that work because number one its like it’s really easy for them to do but it’s also they are making a tone of money per hour doing your data entry and it’s a bad decision for you don’t do that you need to make sure you have a bookkeeper doing the bookkeeping work CPA doing with CPA work in terms of cost y6ou are going to spend anywhere between one hundred and twenty-five dollars and hour to upwards of four hundred and fifty dollars an hour.

    If you are getting into really crazy stuff like you know we are derivative stuff or like oil and gas sometimes those guys get really expensive so just be aware the industry you are in and the complication of what you do is going to is going to affect the rate that you are playing your CPA but a good CPA is usually worth the investment because they save you an insane amount of money down the road laughs I hear guys not all CPAs are created equal I have seen some really bad CPAs out there so do your due diligence don’t just take word that because there are CPA that they are going to be great.

     

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