Accounting consultants' training starts with obtaining accounting education. These accountants often work in their own businesses, aiding clients in improving accounting practices and troubleshooting problems. They may also work for an accounting consultancy firm. Accounting consulting services are necessary for small business owners as well as corporate entities with specialized needs. An individual may wish to train in a specific area of accounting or train more generally to fit a broader client base. When considering accounting consulting, keep the following things in mind.

1. Get educated for accounting consulting firms offering general bookkeeping and accounting services.

2. Learn accounting consultancy specific to tax codes for businesses.

3. Train as accounting consultants specifically working in corporate accounting.

Action Steps
The best contacts and resources to help you get it done

Work toward accounting consulting through college-level degree programs

Most individuals will take college-level courses in accounting as a first step in an accounting career. These programs are initially available at the Associate and Bachelor level, with Master's programs available for further study. Students learn the fundamentals of bookkeeping, accounting and the functions necessary to run a company's accounting department. These skills may later be used to run an accountancy consulting business.

I recommend: Become an accountant expert. Education and training for Bachelor-level accounting degrees is available through Potomac College in Washington, DC, and Virginia. The University of North Carolina at Chapel Hill offers a one-year accounting degree program and a Master's degree program. The UNC's Kenan-Flagler Business School accounting program is one of the top-ranked in the country.

Obtain training for CPA consulting

CPA consultants are licensed individuals able to provide accounting services and advice to businesses. It is essential to have CPA licensing to provide these specialized services to clients as a consultant. After obtaining a college degree, CPA licensing programs can prepare an individual for the CPA exam.

I recommend: Give accounting advice only after obtaining a CPA license. Becker CPA Review offers courses and products to prepare individuals for the CPA exam. These review courses are available in class format or online. Some programs are available in CD-ROM format. TrainUp offers a large number of CPA training and review courses; some are in seminar format others are e-learning opportunities.

Find an internship program with an accounting consulting company

There's nothing better than gaining experience as an accounting consultant by working as an intern for a good accounting consultancy company.

I recommend: Hook up with an accounting consulting firm after obtaining business management training and become part of its internship program. Check out the AccountingMajors website for links to accounting firms that offer paid internships. Also, the Recruiting Fly offers tips on how to apply for accounting internships. You should also check with your college or university to see if it has contacts for internships in cost accounting.

Starting a new business is exciting, but in that excitement are a lot of decisions to be made. Out of all them all, the financial backbone of your business needs to be seriously taken into consideration. A large part of that are the accounting decisions you will need to make.

Action Steps
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The type of organization your business is.

Are you a sole proprietor or are you in business with someone else? Will you organize as a partnership or as a corporation? Limited liability companies are the newest form of entity – is this form right for your business? Choosing an organizational type will determine what federal and state income forms to file. For example, a corporation may need to file annual reports in the state of the incorporation.

I recommend: Most states allow you to file electronically now. Find the website for your Secretary of State at Yahoo!.

The fiscal year of your business.

Most businesses use the calendar year, but that may not be the proper choice for your business. For tax purposes or seasonality, many businesses choose a different beginning and ending date than the January through December calendar year.

I recommend: Find a slow time of year for your business to do year end inventory and accounting.

The accounting method for your business.

Are you going to use a cash or accrual method of accounting? The cash method is easier for startup companies, however, if you have inventory – the IRS may force you to use accrual.

I recommend: Get a good CPA to give you counsel on this decision.

The method of valuing inventory for your business.

Your banker may prefer one over the other.

I recommend: If you don't have a bank here is a good tutorial to help you find one.

Financial records for your business.

You have a lot of choices here! Are you going to use paper ledger sheets to record sales and purchases? Are you going to keep track of income and expense using a computer program? Some bookkeeping software has the ability to integrate your data with an accounting professional, thus saving you money. You will need to decide the best method for your business.

I recommend: Learn more about financial statements at the Accounting Aisle.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Starting a new business is exciting! If you take the time to talk with your accounting professional about the above decisions, you will help ascertain the best possible beginnings for your business. Good luck!

When it comes to accounting consultants, key terms can help you understand the services offered by different consultants or firms. Accounting consultants may specialize in helping you establish a business, may provide solutions to organize and maintain your financial documentation or offer accounting services specific to your situation. Consultants may offer all-inclusive services or charge by the service. Depending on your business structure, you may need a specific type of accountant like a certified public accountant (CPA).

Action Steps
The best contacts and resources to help you get it done

Bookkeeping

Bookkeeping is an element of accounting that an accounting consultant may offer as a service. In this field, bookkeeping refers to recording and classifying your business transactions into financial documents. Depending on the consultant, he or she may work with you to setup a bookkeeping system that you can maintain on your own.

I recommend: Bean Counter provides a tutorial on booking keeping, designed for business owners and managers.

Accounting services

Accounting services involve more than basic bookkeeping services. With accounting services, your consultant will not only collect and organize your financial information; he or she will also analyze it and use the information to create reports, forecasts or other financial information that goes beyond the basic profit and loss statement.

I recommend: Accounting Services clearly defines the services included when you use its business as your accounting consulting firm. It also classifies additional services, which cost more.

General ledger

One of the first things a business accountant consult will examine is whether or not your business is utilizing a general ledger. If not, the consultant will help you setup a system for maintaining one. Most accountants use the general ledger to keep track of financial transactions based by account. The information provided in the general ledger will allow you to see your running account balance by category.

I recommend: BusinessTown.com shows how a general ledger relates to other financial transactions in a business.

Profit and loss statements

Profit and loss statements, often called P&L statements, indicate the cash flow of a business and are documents that an accountant consultant can prepare. In some cases, you may need to hire a consultant to analyze your P&L statements in order to determine the direction your business needs to go.

I recommend: The Ohio State University provides a fact sheet on P&L statements. It includes an overview of the information this kind of statement contains.

Certified public accountant (CPA)

A CPA is a title given to an accountant who has passed the CPA examination for licensing. The license indicates that an accountant knows and applies the laws and regulations which the U.S. Government established for the industry. The title also indicates that the CPA can perform functions that an unlicensed accountant cannot.

I recommend: Suite101 hosts an article that discusses the differences between a CPA and an accountant.

Business structure, type of business

If you're just starting a business, an accounting consultant can help you understand how taxes pertain to each type of business, or business structure. The basic types of businesses include sole proprietorship, partnerships, corporations and limited liability companies (LLCs).

I recommend: USA Today provides an article the covers the difference between business structures and includes the pros and cons for each.