Finding Professional Advisors You Can Trust
It's smart to pinch pennies when you're starting or running a small business, and that often means taking a do-it-yourself approach to new tasks. But sometimes it's best to spend the money to hire a pro.
That's often the case when it comes to taxes and legal matters. In those areas, a trial-and-error method can be far more expensive than the cost of getting an accountant or a lawyer to do the job correctly for you the first time. You might also find it worth your while to hire marketing, human resources, office services, or other consultants to help your business grow — or stave off potential problems.
Bear in mind, however, that you're putting the health and safety of your business in those pros' hands — so you'll need advisors you can trust. These tips will help you get the guidance you need at prices you can afford:
Decide on the job. Break down each job into its components, and decide if you can take care of any of those components yourself. For example, you might want to set up your own books if you have a background in bookkeeping. You can then show the books to an accountant to make sure you've covered the necessary bases. After that, you may only need an accountant's services at tax time.
Get referrals. Seek referrals from other small business owners. Ask them these questions:
- Does the advisor offer useful advice on how to operate your business?
- Is the person easy to reach?
- Do you feel like an important client?
- Does the advisor appear to be an expert in the field?
- Do you trust the advisor?
Interview at least two candidates for each job. Glowing recommendations aren't enough; you also need to feel comfortable with the person you hire. Take the time to interview each candidate, following these guidelines:
- Ask about small-business experience. Ideally, you'd like an advisor who has worked with small businesses such as yours. This is particularly important if your business is subject to special laws — such as rules governing restaurants, farms, or firms whose workers are involved in dangerous occupations.
- Find out if the advisor specializes in the services you need. If you need a lawyer only to help you incorporate your business, hire someone who has helped a lot of firms incorporate.
- Remember that service counts. If the candidate seems rushed or takes calls during your meeting, you should be concerned.
- Look for evidence of foresight. Ask each professional to talk about problems your business might encounter, and the ways they would address such difficulties.
- Test for communications skills. Find out how well the advisor can explain things to you. For example, you might ask an accountant to discuss a complex piece of the tax code, or ask a lawyer to review a law that governs your firm's activities.
- Discuss cost. If you only need a professional for a limited job, is there a flat fee? Does the advisor bill by the hour? Precisely what will you get for your money?
- Ask about their insurance. If your advisor makes a mistake that costs your business money, the advisor's insurance might cover your loss. Lawyers should carry malpractice insurance, and accountants should carry liability or errors and omissions insurance.
