The physical demands of owning and running an electrical business range from long work hours, emergency calls, complying with regulations and ongoing training requirements. At the end of a day, the last thing you want to think about is your accounting responsibilities too!
Instead, rely on an accounting service familiar with the ins and outs of your electrical contractor business and can properly assist you in making sure all your financial requirements are met in a timely and accurate manner. When searching for an electrician accountant, be sure to ask the following 6 accounting interview questions.
6 accounting interview questions to ask as an electrical contractor
Question 1: What financial records do I need to maintain?
The accountant should be able to explain the purpose and importance of the following type of financial records:
- Financial statements – Income statements, cash flow statement, balance sheet, statement of retained earnings
- General Ledger
- Business tax returns
- Business agreements
- Contracts
- Business licenses and permits
- Insurance documents
- Payroll records
Question 2: What business expenses are deductible?
A knowledgeable accountant should be able to help you claim benefits and explore new ways to cut expenses in areas related to:
- Use of vehicles or fleet services
- Tools
- Employee expenses
- Payrolls
- Insurances
- Charitable contributions
Question 3: When do I need to pay taxes?
Answer: As a business owner, you are responsible for paying taxes. The basic tax filing has certain dates decided by the IRS and other state authorities.
Adhering to the deadlines is the accountant’s job. They can help you create payment plans and ensure you don’t incur any fines.
Question 4: What are the key services they can offer you in your field of business?
There are certain services which are unique to the electrical contractors and construction businesses. Get an overview of them from your accountant. They should include:
- Choosing between cash and accrual method of accounting
- Percentage of completion method
- Monitoring job costs and allocating indirect costs
- Classifying as large or small contractor
- Business & Risk Insurances
- Accounting software for payroll, invoicing, etc.
- Wealth creation strategies including retirement and transfer of Capital Gains
- Industry risk profiling
- Managing the Key Performance Indicators (KPI)
- Advice on sale, purchase, mergers & acquisitions etc.
Question 5: How often will they meet with you to discuss business growth and potential?
As a business owner you should be satisfied with the time and effort your accountant is giving your business. There are a lot of accountants to choose from. However, not all of them offer equal amount of individual attention to all of their clients.
Question 6: Are you a full-service accounting or bookkeeping firm or will I have to take my services elsewhere for taxes?
Bookkeepers and accountants often perform the same duties, but accountants typically have more training than bookkeepers. To legitimately claim the title of accountant means the person had to sit for an accounting examination. Accountants often have “CPA” after their names, which designates them as Certified Public Accountants.
Hiring an accountant will cost more than a bookkeeper. If you have a relatively simple business model with basic types of accounting transactions, a bookkeeper can probably handle that type of work. But if you have a more complicated system with large(r) payrolls, tax filings or you’re a corporation, you likely want to consider an accountant.
Be Prepared
Don’t be surprised if, once you’re done asking all your accounting interview questions, the accountant will have several questions of their own. Remember, they’re interviewing you just as much as you’re interviewing them. They need to understand your business model and specific needs and goals.
Evaluate Your Q & A’s
We recommend interviewing 2 -3 different accounting services for electrical contractors and then compare their answers. Here are some things to keep in mind:
- How did each electrical accountant respond to your questions?
- Are there any concerns or red flags?
- Did you like one person or company more than the others?
Whichever company makes you feel the most comfortable and garners the most “yes” responses to your questions should be the company you choose.
Best of luck in your search. If you are looking for an accounting service for electrical contractor, we’d love for you to consider ClienTax.