Question

If was to hire an accountant for a small business (physio clinic max 4 employees)  should I hire them on a monthly basis (like a retainer) if so how much would that costs vs if they worked for us once a year (doesn’t need to be exact), are plan is to have a front desk receptionist that would be a book keeper so we don’t know how long how much we would need an accountant. Also what would they be able to do (responsibilities)? Honest to god I have no idea what exactly an accountant does I just know it involves  a lot of math

Answer 1

Firstly Iet me explain you what an accountant does generally. Since your business is at a very low scale, the accountant can handle more things such as:

· An accountant made day to day to accounting entries in the computer to keep the track of your revenue, expense, liabilities, stock, etc.

· An accountant can also handle cash management i.e. to collect and payment to customers. (As this work is generally done by cashier, but since your business is small, it can be done by accountant)

· An accountant also prepare monthly return to be filed under relevant regulatory authority

· An accountant also prepare Annual financial statement of the firm

· An accountant also manages bank related work i.e. deposition of cheques, bank reconciliation, co-ordinating with bankers, etc.

So on hiring basis it would be beneficial to hire them on monthly basis who work as accountant as well as receptionist. Because that would help firm to maintain its books of accounts on timely and smoothly manner. As the firm is small the person can also be worked as receptionist as the account related work will be less in small firm. And anyway they want to hire a receptionist so it is better to hire person who fits for both.

If hiring once a year, will cause the accounting data misleading and not fruitful and also it can be costly as the firm need to hire a receponist and a accountant on yearly basis separately. So it is advisable to hire them on a monthly basis who work as accountant as well as receptionist receptionist.

The average monthly salary of a book-keeping accounting will be around $3000-$4000 and may vary also based on qualification and experience.