Hiring a Lawyer and an Accountant
As you start on your business journey, there are two professionals you will soon come to rely on to guide you along the path: your lawyer and your accountant. It’s hard to navigate the maze of tax and legal issues facing entrepreneurs these days unless these professionals are an integral part of your team.
Hiring a Lawyer
When do you need a lawyer? Although the answer depends on your business and circumstances, it’s generally worthwhile to consult one before making any decision that could have legal ramifications. These include setting up a partnership or corporation, checking for compliance with regulations, negotiating loans, obtaining trademarks or patents, preparing buy-sell agreements, assisting with tax planning, drawing up pension plans, reviewing business forms, negotiating and drawing up documents to buy or sell real estate, reviewing employee contracts, exporting or selling products in other states, and collecting bad debts. If something goes wrong, you may need an attorney to stand up for your trademark rights, go to court on an employee dispute, or defend you in a product liability lawsuit. Some entrepreneurs wait until something goes wrong to consult an attorney, but in today’s litigious society, that isn’t the smartest idea. “Almost every business, whatever its size, requires a lawyer’s advice,” says attorney James Blythe Hodge. “Even the smallest business has tax concerns that need to be addressed as early as the planning stages.”
tip
When a client refuses to pay, do you hand the case to a lawyer? Some entrepreneurs do, but others handle small legal matters on their own by using their attorney as a coach. Lawyers can be very effective in helping you to file lawsuits in small-claims court, draft employment manuals, and complete other legal tasks.
In a crisis situation—such as a lawsuit or trademark wrangle—you may not have time to thoroughly research different legal options. More likely, you’ll end up flipping through the Yellow Pages in haste and getting stuck with a second-rate lawyer. Better to start off on the right foot from the beginning by doing the proper research and choosing a good lawyer now. Many entrepreneurs say their relationship with a lawyer is like a marriage—it takes time to develop. That’s why it’s important to lay the groundwork for a good partnership early.
Choosing an Attorney
How do you find the right attorney? Ask for recommendations from business owners in your industry or from professionals, such as bankers or accountants you trust. Don’t just get names; ask them for the specific strengths and weaknesses of the attorneys they recommend. Then take the process one step further: Ask your business associates’ attorneys whom they recommend and why. (Attorneys are more likely to be helpful if you phrase the request as “If for some reason I couldn’t use you, who would you recommend and why?”) If you still need more prospects, contact your local Bar Association; many of them have referral services.
Next, set up an interview with the top five attorneys you’re considering. Tell them you’re interested in building a long-term relationship, and find out which ones are willing to meet with you for an initial consultation without charging a fee.
At this initial conference, be ready to describe your business and its legal needs. Take note of what the attorney says and does, and look for the following qualities:
save
When you’re starting a business, you’re short of money for just about everything, including legal services. Realizing this, many law firms offer a “startup package” of legal services for a set fee. This typically includes drawing up initial documents, attending corporate board meetings, preparing minutes, drafting ownership agreements and stock certificates, and offering routine legal advice.
Experience. Although it’s not essential to find an expert in your field, it makes sense to look for someone who specializes in small-business problems as opposed to, say, maritime law. “Find someone who understands the different business structures and their tax implications,” says Hodge. Make sure the lawyer is willing to take on small problems; if you’re trying to collect on a small invoice, will the lawyer think it’s worth his or her time?
Understanding. Be sure the attorney is willing to learn about your business’ goals. You’re looking for someone who will be a long-term partner in your business’ growth. Sure, you’re a startup today, but does the lawyer understand where you want to be tomorrow and share your vision for the future?
Ability to communicate. If the lawyer speaks in legalese and doesn’t bother to explain the terms they use, you should look for someone else. Or if you feel you can’t ask simple questions, move on. You need to feel comfortable.
Availability. Will the attorney be available for conferences at your convenience, not theirs? How quickly can you expect emergency phone calls to be returned?
Rapport. Is this someone you can get along with? You’ll be discussing matters close to your heart, so make sure you feel comfortable doing so. Good chemistry will ensure a better relationship and more positive results for your business.
Reasonable fees. Attorneys charge anywhere from $100 to $1,000 or more per hour, depending on the location, size, and prestige of the firm as well as the lawyer’s reputation and experience. Shop around and get quotes from several firms before making your decision. However, beware of comparing one attorney with another on the basis of fees alone. The lowest hourly fees may not indicate the best value in legal work because an inexperienced attorney may take twice as long to complete a project as an experienced one. A small, but growing number of attorneys are eschewing the hourly fee route in favor of project fees. Depending on your needs, this setup could be more beneficial—and efficient.
References. Don’t be afraid to ask for references. Ask what types of businesses or cases the attorney has worked with in the past. Get a list of clients or other attorneys you can contact to discuss competence, service, and fees. When you contact these people, ask about their experiences, what they liked, and what matters to them. What matters to one person might not be most important to you. Keep that in mind as you check references.
Cost Cutters
For many entrepreneurs, the idea of consulting a lawyer conjures scary visions of skyrocketing legal bills. While there’s no denying that lawyers are expensive, the good news is there are more ways than ever to keep a lid on costs. Start by learning about the various ways lawyers bill their time:
save
Using paralegals as part of your legal team can be a good way to cut costs. Certain legal tasks—preparing a simple document, for instance—are straightforward enough that a paralegal may be able to handle them instead of a higher-priced lawyer. Don’t assume your lawyer will suggest this route; ask them about it. And always make sure the paralegal is supervised by a business lawyer. The same goes for legal assistants and junior attorneys. Ask your lawyer if it’s possible for the most junior member qualified to do the work to handle more mundane or simple tasks. Even if you request the senior attorney review the work in brief, this approach could save you hundreds of dollars per hour.
Hourly or per diem rate. Most attorneys bill by the hour. If travel is involved, they may bill by the day. They might also bill hourly for travel time, so be sure to ask.
Flat fee. Some attorneys suggest a flat fee for certain routine matters, such as reviewing a contract or closing a loan.
Monthly retainer. If you anticipate a lot of routine questions, one option is a monthly fee that entitles you to all the routine legal advice you need.
Contingent fee. For lawsuits and other complex matters, lawyers often work on a contingency basis. This means that if they succeed, they receive a percentage of the proceeds—usually between 20 and 50 percent. If they fail, they receive only out-of-pocket expenses.
Value billing. Some law firms bill at a higher rate on business matters if the attorneys obtain a favorable result, such as negotiating a contract that saves the client thousands of dollars. Try to avoid lawyers who use this method, which is also sometimes called “partial contingency.”
If you think one method will work better for you than another, don’t hesitate to bring it up with the attorney; many will offer flexible arrangements to meet your needs.
When you hire an attorney, draw up an agreement (called an “engagement letter”) detailing the billing method. If more than one attorney works on your file, make sure you specify the hourly rate for each individual so you aren’t charged $200 an hour for legal work done by an associate who only charges $75 an hour.
This agreement should also specify what expenses you’re expected to reimburse. Some attorneys expect to be reimbursed for meals, secretarial overtime, postage, and photocopies, which many people consider the costs of doing business. If an unexpected charge comes up, will your attorney call you for authorization? Agree to reimburse only reasonable and necessary out-of-pocket expenses. No matter what methods your attorney uses, here are steps you can take to control legal costs:
Have the attorney estimate the cost of each matter in writing so you can decide whether it’s worth pursuing. If the bill comes in over the estimate, ask why. Some attorneys also offer “caps,” guaranteeing in writing the maximum cost of a particular service. This helps you budget and gives you more certainty than just getting an estimate.
Learn what increments of time the firm uses to calculate its bill. Attorneys keep track of their time in increments as short as six minutes or as long as half an hour. Will a five-minute phone call cost you $50?
Request monthly, itemized bills. Some lawyers wait until a bill gets large before sending an invoice. Ask for monthly invoices and review them. The most obvious red flag is excessive fees; this means that too many people—or the wrong people—are working on your file. It’s also possible you may be mistakenly billed for work done for another client, so review your invoices carefully.
See if you can negotiate prompt-payment discounts. Request that your bill be discounted if you pay within 30 days of your invoice date. A 5-percent discount can add thousands of dollars to your bottom line.
Pay Now, Not Later
A new method has arisen to take charge of skyrocketing legal fees. It’s called the prepaid legal plan, and more and more small businesses are using it.
Prepaid legal plans have been compared to HMOs because they offer certain basic services for a monthly fee. Prices range from as little as $10 a month to $100 or more; in return, an entrepreneur gets a package of services, such as, say, unlimited phone consultation with a lawyer, review of three contracts per month, up to ten debt collection letters per month, and discounts on other legal services.
According to prepaid legal services firm Caldwell Legal, USA, 73 percent of all legal problems members bring can be resolved with a single telephone call.
Typically, prepaid legal services contract with one law firm in each state to handle routine matters. Because the service is often that firm’s biggest client, business owners using the service receive a warmer welcome than they might at a big law firm. Specialists may also be available at reduced rates.
When thinking about a prepaid legal service, here are some factors to consider:
What’s included? Check the plan to make sure it has what you need. The number of services offered at a reduced rate may be limited; what are the charges for other services?
Consider whether you’d prefer to build a relationship with one attorney, rather than talk to a different lawyer every time you call.
Ask other entrepreneurs who have used such services about the quality of work. Also ask how the company handles conflicts of interest in case you have a dispute against a business that uses the same prepaid firm.
With these caveats in mind, a prepaid legal service firm could be just what a business on a budget needs. For more information, contact the Group Legal Services Association at (312) 988-5751, or visit its website at glsaonline.org.
Be prepared. Before you meet with or call your lawyer, have the necessary documents with you and know exactly what you want to discuss. Fax needed documents ahead of time so your attorney doesn’t have to read them during the conference and can instead get right down to business. And refrain from calling your attorney 100 times a day—or even ten times. Remember, you’re being billed for that time!
Meet with your lawyer regularly. At first glance, this may not seem like a good way to keep costs down, but you will be amazed at how much it reduces the endless rounds of phone tag that plague busy entrepreneurs and attorneys. More important, a monthly five-or ten-minute meeting (even by phone) can save you substantial sums by nipping small legal problems in the bud before they even get a chance to grow.
e-fyi
Need a quick, free expert answer? Go to www.sba.gov and/or write to answerdesk@sba.gov, or call (800) 827-5722. The Answer Desk, according to the SBA, is the only national toll-free telephone service providing information to the public on small-business problems and concerns. They’re ready to talk Monday through Friday, 9 A.M. to 7 P.M. EST. You can access services at local district offices, too. To find a list of locations by state, visit www.sba.gov/tools/local-assistance.
Making the Most of Your Lawyer
Once your relationship with your lawyer is established, keep the lines of communication open. In addition to brief regular meetings, sit down with your attorney once annually to discuss the past year’s progress and your goals for the coming year. Meet at your place of business so the attorney can get to know your operation.
How can you tell if your attorney is doing a good job? The quickest measure is how many legal difficulties you’re having. Lawyers should be fending off legal problems. A good attorney identifies potential problems in advance.
DIY lawyers
Should you consider a do-it-yourself approach and use services offered online by companies, such as Rocket Lawyer, LegalZoom, or LegalShield? Most experts recommend that you use a professional for setting up your business entity and any major contracts that have complex terms. But for simple legal matters, such as simple vendor contracts, equipment lease reviews, and basic employment contracts, an online service could be fine—and they’ll save you some money.
Services like LegalShield partner with law firms in each state, and the lawyers you have access to have an average of about 20 years of experience. You pay a flat, monthly fee, depending on the number of employees you have (rates start at $39 a month). In return, you’ll receive unlimited consultations and a limited number of calls, letters, and documents.
Other services like LegalZoom and Rocket Lawyer offer low-cost pay-per-document services, as well as additional services and consultations for a flat monthly fee (typically $20 to $50 a month). For example, Rocket Lawyer offers free reviews from local attorneys. For some small-business owners, these companies can be a good supplement to the services of a professional lawyer.
Like any competent professional, a good lawyer also returns phone calls promptly, meets deadlines, and follows through on promises. A good lawyer is thorough in asking for information and discerning your goals. And good lawyers either research what they do not know and explain your options or refer you to someone who can help.
In evaluating the attorney’s work on any matter, consider whether you have been able to meet your goals. If you have met your goals without undue costs, the attorney is probably doing a good job. Once you’ve discovered a lawyer who understands your business and does a good job, you have found a valuable asset.
Different Strokes
When you’re hit with a lawsuit, the costs can be mind-boggling—even if you win. That’s why more and more small businesses are using alternative dispute resolution (ADR), a concept that includes mediation, arbitration, and other ways of resolving disputes without resorting to litigation. Both in contracts between businesses or in agreements between employers and employees, people are consenting ahead of time to submit future disputes to ADR. Here are the most common forms of ADR:
Negotiation. In the simplest form of ADR, the two parties (or their lawyers) discuss their differences and agree on a settlement.
Mediation. When the two parties need more help in working out a solution, they can hire a neutral third party (a mediator) skilled in asking questions, listening, and assisting with decisions. The result is a written agreement to settle the dispute; both parties share the mediation costs.
Arbitration. An arbitrator hears a case like a judge and then issues a decision. The parties have control over who hears the case—often, an expert in their field. In nonbinding arbitration, the arbitrator makes a recommendation that parties can accept or reject. In binding arbitration, the arbitrator’s decision is legally binding.
Mini-trial. Less common, this gives both parties a sense of how their disagreement might resolve in court. They watch their lawyers argue the case as if they were at trial. In most cases, the parties are better able to see the other side and end up settling the case.
Summary jury trial. Here, a jury of citizens hears a shortened trial and makes a nonbinding decision. Again, this usually helps the parties agree on a settlement.
Any time two parties enter a contract, they can include an agreement to submit any disputes to a specified type of ADR. Your attorney can help you draft a clause specifying how the situation will be handled. If you have employees sign an ADR agreement, make sure they understand that they will lose the option of a jury trial.
Even if you don’t have an ADR clause in your contracts, it’s still possible to suggest using it after a dispute arises. Once they understand how much money, time, and aggravation ADR can save, the other side may agree to use it.
Hiring an Accountant
Don’t assume only big companies need the services of an accountant. Accountants help you keep an eye on major costs as early as the startup stage, a time when you’re probably preoccupied with counting every paper clip and postage stamp. Accountants help you look at the big picture.
Even after the startup stage, many business owners may not have any idea how well they’re doing financially until the end of the year when they file their tax returns. Meanwhile, they equate their cash flow with profits, which is wrong. Every dollar counts for business owners, so if you don’t know where you stand on a monthly basis, you may not be around at the end of the year.
While do-it-yourself accounting software is plentiful and easy to use, it’s not the sole answer. Just as having Microsoft Word does not make you a writer, having accounting software doesn’t make you an accountant. Software can only do what you tell it to do—and a good accountant’s skills go far beyond crunching numbers.
In fact, perhaps no other business relationship has such potential to pay off. Nowadays, accountants are more than just bean counters. A good accountant can be your company’s financial partner for life—with intimate knowledge of everything from how you’re going to finance your next forklift to how you’re going to finance your daughter’s college education.
e-fyi
The American Institute of Certified Public Accountants has a website that provides news updates, information about legislative activities, and general consumer information, as well as links to state CPA societies, where you can get CPA referrals. Visit www.aicpa.org.
While many people think of accountants strictly as tax preparers, in reality, accountants have a wide knowledge base that can be an invaluable asset to a business. A general accounting practice covers four basic areas of expertise:
1. Business advisory services
2. Accounting and record keeping
3. Tax advice
4. Auditing
All the Right Questions
Here are ten questions to ask when interviewing a potential accountant:
1. Are you a CPA? (Don’t assume every accountant is.)
2. Are you licensed to practice in your state?
3. When and where did you receive a license to practice?
4. Where did you go to school, and what degrees did you earn?
5. Who are some of your clients? (Call them and get references.)
6. In what area do you specialize?
7. How big or small are your clients, and what size were they when you began your relationship with them?
8. How accessible are you? (Some accountants are only available during business hours; others will give you their home or cell phone number.)
9. To what professional organizations do you belong? How active are you in those groups?
10. What are your fees? (Ask to see some current invoices.)
These four disciplines often overlap. For instance, if your accountant is helping you prepare the financial statements you need for a loan, and they give you some insights into how certain estimates could be recalculated to get a more favorable review, the accountant is crossing the line from auditing into business advisory services. And perhaps, after preparing your midyear financial statements, they might suggest how your year-to-date performance will influence your year-end tax liability. Here’s a closer look at the four areas.
Business Advisory Services
This is where accountants can really earn their keep. Since the accountant is knowledgeable about your business environment, your tax situation, and your financial statements, it makes sense to ask them to pull all the pieces together and help you come up with a business plan and personal financial plan you can really achieve. Accountants can offer advice on everything from insurance (do you really need business interruption insurance, or would it be cheaper to lease a second site?) to expansion (how will additional capacity affect operating costs?). Accountants can bring a new level of insight to the picture simply by virtue of their perspective.
Accounting and Record keeping
Accounting and record keeping are perhaps the most basic accounting discipline. However, most business owners keep their own books and records instead of having their accountant do it. The reason is simple: If these records are examined by lenders or the IRS, the business owner is responsible for their accuracy; therefore, it makes more sense for the owner to maintain them.
Where accountants can offer help is in initially setting up bookkeeping and accounting systems and showing the business owner how to use them. A good system allows you to evaluate your profitability at any given point in time and modify prices accordingly. It also lets you track expenses to see if any areas are getting out of hand. It lets you establish and track a budget, spot trends in sales and expenses, and reduce accounting fees required to produce financial statements and tax returns.
aha!
If you’re looking to master accounting for your new business—or simply don’t want to be left in the dark when talking to your accountant—check out Small Business Accounting Simplified by Daniel Sitarz (Nova Publishing, 2010). This useful reference book features easy techniques you can use, simple solutions to common problems, and everything you need to gain an overall understanding of the accounting process. It also includes a CD with commonly used forms.
Tax Advice
Tax help from accountants comes in two forms: tax compliance and tax planning. Planning refers to reducing your overall tax burden; compliance refers to obeying the tax laws.
Auditing
Auditing services are required for many different purposes, most commonly by banks as a condition of a loan. There are many levels of auditing, ranging from simply preparing financial statements from figures that the entrepreneur supplies all the way up to an actual audit, where the accountant or other third party gives assurance that a company’s financial information is accurate.
Choosing an Accountant
The best way to find a good accountant is to get a referral from your attorney, your banker, or a business colleague in the same industry. If you need more possibilities, almost every state has a Society of Certified Public Accountants that will make a referral. Don’t underestimate the importance of a CPA. This title is only awarded to people who have passed a rigorous two-day, nationally standardized test. Most states require CPAs to have at least a college degree or its equivalent, and several states also require post-graduate work. Be sure to examine the qualifications your accountant candidates present.
A Little Help from Your Friends
Mentors can be valuable sources of information at any stage of your company’s growth. It is always in your best interest to reach out to a variety of sources of information when you make decisions, advises SCORE. An SBA partner, SCORE offers over 10,000 volunteer members and 300 plus chapters throughout the United States.
Mentors can often give you a fresh perspective on problems or challenges because they’re not personally involved with your business like other advisors, including attorneys, accountants, and friends. For this reason, it’s important to find not only a mentor who has experience and knowledge but also someone you can trust and feel at ease with.
To get matched with a mentor, your first step should be locating your local SCORE chapter. Call (800) 634-0245, or visit www.score.org. If there’s not a chapter near you, no problem. SCORE also offers free email counseling.
Other mentoring resources can be found through networking in your community. Join the local chamber of commerce, Rotary Club, or Toastmasters. Attend luncheons, seminars, and conferences related to your business, and talk to guest speakers. Find out what types of business organizations closely match your company so you can team up with other individuals with similar interests and concerns. Developing these types of personal and business relationships can put you in touch with successful people who may be potential mentors.
Accountants usually work for large companies; CPAs, on the other hand, work for a variety of large and small businesses. When dealing with an accountant, you can only hope they are well-educated and well-versed in your business’ needs. Passing the CPA exam, however, is a guarantee of a certain level of ability. Once you have come up with some good candidates, a little preparation is in order before you interview them. The first step in setting the stage for a successful search is to take an inventory of what you will need. It is important to determine beforehand just how much of the work your company will do and how much of it will be done by the accountant.
Accounting services can be broken down into three broad categories: recording transactions, assembling them, and generating returns and financial statements. Typically, the latter part—that is, the generation of returns and financial statements—requires the highest level of expertise. But though the other activities require a lower skill level, many firms still charge the same hourly rate for them. Given the level of fees you are prepared to pay, you must decide where your responsibility stops and where the accountant’s begins.
Once you have compiled your documentation and given some thought to your expectations, you’re ready to interview your referrals. Five candidates is a good number to start with. For each candidate, plan on two meetings before making your decision. One of these meetings should be at your site; the other should be at theirs. Both parties need to know the environment the other works in. Your principal goal is to find out about three things: services, personality, and fees.
1. Services. Most accounting firms offer tax and auditing services. But what about bookkeeping? Management consulting? Pension fund accounting? Estate planning? Will the accountant help you design and implement financial information systems? Other services a CPA may offer include analyzing transactions for loans and financing; preparing, auditing, reviewing and compiling financial statements; managing investments; and representing you before tax authorities.
Although smaller accounting firms are generally a better bet for entrepreneurs (see “The Size of It” on page 185), they may not offer all these services. Make sure the firm has what you need. If it can’t offer specialized services, such as estate planning, it may have relationships with other firms to which it can refer you to handle these matters. In addition to services, make sure the firm has experience with small business and with your industry. Someone who is already familiar with the financial issues facing your field of business won’t have to waste time getting up to speed.
The Size of It
Are you debating over the choice between that large, fancy law or accounting firm with offices in every corner of the globe and that humble, one-person legal or accounting office down the street? Before you bust your budget to retain Squelch, Withers & Ream, know this: When it comes to professional service firms, bigger isn’t always better.
A big law or accounting firm may boast impressive credentials on your first meeting with them. The problem is that they usually boast an impressive price to match. What’s more, the hotshot you meet with on your initial conference may not be the person who will work on your legal cases or taxes. That task is likely to fall to a less experienced junior partner with limited know-how. This isn’t necessarily bad, but make sure you know who will be working on your file and what their experience is.
Don’t be swayed simply by a big name or fancy office (your fees will be paying for these, too). While a big law or accounting firm may be right for some small businesses’ needs, the reality is that your company will make up a much smaller share of such a firm’s client list. As such, you may not get the attention they’re devoting to bigger clients.
2. Personality. Is the accountant’s style compatible with yours? Be sure the people you are meeting with are the same ones who will be handling your business. At many firms, some partners handle sales and new business and then pass the actual accounting work on to others.
When evaluating competency and compatibility, ask candidates how they would handle situations relevant to you. For example, how would you handle a change in corporation status from S to C, or an IRS office audit seeking verification of automobile expenses? Listen to the answers, and decide if that’s how you would like your affairs to be handled.
Realize, too, that having an accountant who takes a different approach can be a good thing. If you are super conservative, it’s not a bad thing to have an accountant who exposes you to the aggressive side of life. Likewise, if you are aggressive, it’s often helpful to have someone who can show you the conservative approach. Be sure that the accountant won’t pressure you into doing things you aren’t comfortable with. You need to be able to sleep at night.
tip
Find out how well-connected the CPA and their firm is before making a final decision. CPAs are often valuable resources for small businesses needing to borrow money or raise capital from other sources. A well-connected CPA might help you get a foot in the door with a bank or investor.
3. Fees. Ask about fees upfront. Most accounting firms charge by the hour; fees can range from $30 to $300 per hour—and typically $100 to $150 for a less senior CPA—according to AdvisoryHQ. However, some accountants work on a monthly retainer. Figure out what services you are likely to need and which option will be the most cost-effective.
Get a range of quotes from different accountants. Also try to get an estimate of the total annual charges based on the services you have discussed. Don’t base your decision solely on cost, however; an accountant who charges more by the hour is likely to be more experienced and thus able to work faster than a novice who charges less.
At the end of the interview, ask for references—particularly from clients in the same industry as you. A good accountant should be happy to provide you with references; call and ask how satisfied they were with the accountant’s services, fees, and availability.
Good Relations
After you have made your choice, spell out the terms of the agreement in an “engagement letter” that details the returns and statements to be prepared and the fees to be charged. This ensures you and your accountant have the same expectations and helps prevent misunderstandings and hard feelings.
tip
If you are starting a retail or service business involving a lot of cash, make sure the CPA has expertise in providing input on controlling your cash. As you grow, this becomes an increasingly vital issue, and a good CPA should be able to advise you in this area.
Make the most of the accounting relationship by doing your part. Don’t hand your accountant a shoebox full of receipts. Write down details of all the checks in your check register—whether they are for utilities, supplies, and so on. Likewise, identify sources of income on your bank deposit slips. The better you maintain your records, the less time your accountant has to spend—and the lower your fees will be.
It’s a good idea to meet with your accountant every month at first; once you are fully established and comfortable, every other month or quarterly may be enough. Review financial statements and go over any problems so you know where your money is going. This is where your accountant should go beyond number-crunching to suggest alternative ways of cutting costs and act as a sounding board.
A good accountant can help your business in ways you never dreamed possible. Spending the time to find the right accountant—and taking advantage of the advice they have to offer—is one of the best things you can do to help your business soar.