Choosing the right accountant is stressful. Accountants are usually specialists within one area and if you choose the right accountant, they can assist you in better understanding your finances aswell as being a business coach. But how do you know if they’re any good? Here are some very basic questions which all accountants should know that you can test your potential accountant with.
1) What is accrual accounting and how does that differ from cash accounting? - This is the very basic of accounting so if your accountant doesn’t know how to answer this question in a way that makes it easy for you to understand - run away and run quickly
2) What is accounts payable?
3) How is a partnership different from a sole proprietor and from a company? (Australian only)
4) What is net assets?
5) What is a holding account?
6) What is depreciation?
Suggested answers to these questions can be found in this forum -> just click on the magnifying glass in the top right hand corner.
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