5 Questions to Ask Before Hiring an Industry-Specific Accountant

There are several ways that hiring an accountant can help your business, from compliance to cash flow management to strategic planning and financial guidance. But getting the right accountant on board entails more than just hiring someone with education and experience. Quite importantly, it involves asking the right questions to narrow your search and to find a professional who can make your financial processes smoother and less stressful. It’s also a must to hire someone who actually fits your needs and who will enable you to train your eyes on critical business priorities. 

Beyond general accounting expertise, a good match requires someone who’s familiar with your field’s regulations and who has industry-specific knowledge. To that end, here are five key questions to ask an accountant to evaluate whether they’re the right fit for your business’s specific industry, all so that you can leverage professional guidance while keeping your sector’s distinct requirements in mind:

1) Do You Have Direct Experience Working with Businesses in My Industry?

When finding the right accountant for your business, industry specificity matters. It’s important to note that standards issued by financial boards are often tailored to different sectors like retail, construction, healthcare, or manufacturing. As such, an accountant Dunedin businesses can rely on will have enough relevant experience to recognise typical financial pitfalls and applicable cost categories, as well as sector benchmarks. You should also ask whether a candidate has worked with clients in your field to gauge not only their familiarity, but also gather insight into whether they can help your business stay competitive and compliant. 

Follow this question up by asking for examples of clients in your industry and how they’ve supported those businesses. This can help you determine whether they’re adequately equipped to catch errors and red flags early and give them the opportunity to suggest financial strategies that are proven within your sector. This applies to how they manage inventory reporting or handle expense tracking, in addition to navigating revenue fluctuations typical in your industry; from this question alone, you’ll find out how they’ll approach common challenges in your sector and how good they may be at helping you save time and money. 

2) Are You Familiar with Compliance and Regulatory Requirements for My Business?

Each industry faces its own legal and reporting requirements. This is why an accountant who works within your industry should know which regulations are relevant to your business, including employment classification rules, allowable deductions, billing practices, and licensing audits. Without that knowledge, your business could be exposed to errors or oversights that may result in penalties or missed deadlines. Thus, it’s crucial to find out whether a candidate keeps up with the latest updates in regulatory shifts or compliance mandates related to your field.

Having someone who understands industry compliance goes beyond just staying out of trouble. In many cases, it can also create opportunities for financial efficiency. For example, certain industries qualify for specific tax credits or incentives, but only if they're documented properly. An accountant with relevant experience will recognise these opportunities early and help you take advantage of them. As a result, the accountant’s role will become proactive rather than reactive, keeping your business in good standing while also maximising what you're entitled to under the law.

3) What Kind of Clients Do You Typically Serve?

The types of businesses an accountant regularly works with can tell you a lot about whether they’re a good fit for your enterprise. For example, if they mostly handle sole proprietors or freelancers, they may not be the best fit for a growing company with a large payroll and network of suppliers. Conversely, someone who primarily works with large corporations may not understand the challenges faced by smaller businesses. As such, when considering candidates, it’s key to look for alignment not just in industry, but also in business structure and scale.

In addition, it’s also helpful to ask how long they’ve worked with those clients. This will clue you in on their ability to maintain long-term relationships, which can indicate reliability and value. If your prospective accountant serves several clients similar to your business, they likely have insight into best practices and common financial hurdles. This background will enable them to make more tailored recommendations and avoid offering generic solutions that may not apply to your industry. 

Ultimately, the goal is to find someone who already has a grasp of what businesses like yours need and who can hit the ground running.

4) Can You Provide Strategic Financial Advice Beyond Bookkeeping and Tax Compliance?

Businesses require more than periodic account reconciliations and routine tax filings. In many industries, financial strategy is just as important as recordkeeping. This is where a qualified accountant can help, by tracking performance over time and budgeting realistically while projecting future growth. 

With a competent accountant, you can get guidance on matters like hiring decisions and even pricing models, as well as advice on capital investments that are instrumental to your company’s long-term growth. During your interview, ask if your candidate offers scenario planning or trend analysis, and if they’re willing to go beyond their basic role and provide support with major business decisions. 

In addition to planning, your business can benefit from an accountant’s strategic insight as they identify inefficiencies and suggest improvements. For example, they might spot an overlooked cash flow issue or help you prepare for a downturn that tends to hit your industry at certain times of the year. Likewise, having a broader understanding of your business’s position means they can help you think long-term, giving your business a clear direction.

5) What Systems and Tools Are You Proficient With?

Modern accounting systems no longer depend on manual procedures that may be prone to inaccuracies and errors. These systems are especially important in industries that rely on automation or advanced inventory systems. Thus, hiring an accountant who is familiar with the tools your business already uses can support efficiency and help reduce the need for manual adjustments. 

During the recruitment process, ask which platforms they’ve worked with and how they typically manage integration or reporting, plus how they handle data imports from other software if needed. Making sure an accountant is proficient with the systems your business uses is essential, as improper use or a lack of understanding about how certain software works can lead to costly errors down the line.

Tech-savvy accountants offer a distinct advantage by helping streamline processes and improving financial visibility. Even if your business is currently using basic systems, an accountant with broader technical knowledge can recommend improvements as you grow. 

For many growing businesses, hiring an accountant can open several possibilities for both efficiency and scalability. While overall expertise is important, choosing an accountant with industry-specific know-how brings a level of mastery and confidence to routine processes as well as informed advice on long-term prospects. It’s true that finding a competent accountant knowledgeable in your field might require asking some carefully chosen questions, but ultimately, it can lead to benefits that are well worth the effort.