Accounting Firms and CPAs

Find a bookkeeper Entering transactions in a ledger as they occur is probably the most basic accounting function in any business. Every small business needs a bookkeeper, even if it means you do the task yourself. In a traditional mom-and-pop business, one spouse usually takes the bookkeeping job. If you're going to hire outside the family, you'll need to find someone both capable and trustworthy.

I recommend:  Bookkeepinghelp.com maintains a directory of bookkeeping services by state and city. You can also advertise in your local newspaper.Interview your candidate with the bookkeeper hiring test from The American Institute of Professional Bookkeepers.

Hire an accounting professional Whether or not you hire a bookkeeper, you'll still need an accounting pro at least, to help with your annual income tax filing. As your business grows and becomes more complex, you'll need more accounting services like monthly reports, income statements and audits. Certified Public Accountants have passed an exam testing their knowledge on the most rigorous tasks like audits. Enrolled agents are accountants who have passed an IRS exam and are licensed to practice before the IRS.

I recommend:  For a primer and worksheets on determining when your business needs more professional help, see Inc.com's Moving from Bookkeeping to Accounting to Finance. Find anaccounting professional through the CPA Directory and the National Association of Enrolled Agents.

Add or upgrade accounting systems Computers and software have automated much of the more tedious accounting work. The problem is that you have to know what to buy and how to use it. Basic, off-the-shelf PCs and software will do the trick for most small businesses. But bigger businesses need more sophisticated solutions that may require consultants to evaluate your needs and recommend solutions.

I recommend:  The standards like Quickbooks or Microsoft Office Small Business Accounting will handle most small business needs. Quickbooks also peddles training programs to help you learn to use its system. CPA Online will find you accounting software specific to your industry. You can use a company like Paychex to handle your payroll.

Add a controller or chief financial officer You know you've arrived when you need a finance czar to look after your company's money. A controller or the even loftier CFO provides strategic and long-range financial organization and planning. They should understand all aspects of business finance as well as computers and software. At this level, the person should be highly trained and experienced in business and will expect to be compensated accordingly.

I recommend:  Take your time hiring someone at this level. Try advertising in trade journals or posting your job on a Web site like JobsintheMoney or CareerBuilder. Or you can try a headhunter like Robert Half International.