What Does an Accountant Do? Guide to Hiring One

Accounting is the process of recording, organizing, and reviewing financial activity. An accountant keeps track of the money and uses these records to prepare financial reports and tax returns.

Good accounting helps business owners understand how much money they have, what they owe, and where they can spend less. A 2025 QuickBooks survey found that small businesses working with accountant support were 73% more likely to report good financial health.

Learn what accountants do each day, which tasks they handle, and how they can help a business manage its finances.

What is accounting?

Accounting is how a business tracks its money and understands what it’s doing. It records the money the business earns and spends, and shows what it owns and owes.

Accountants use these records to prepare financial reports and tax returns. The reports show whether the business is making a profit and has enough cash to pay its bills. Accountants also calculate the tax owed and file the required forms.

When comparing bookkeeping vs. accounting, bookkeeping records transactions while accounting analyzes the data. The accounting cycle covers the steps used to record transactions and close the books for each reporting period.

A business’s accounting method determines when and how it records income and expenses. With cash basis accounting, transactions are recorded when money moves. Accrual accounting records revenue when it is earned and expenses when they are incurred.

What does an accountant do?

In the course of recording and reviewing financial data, business accountants handle the following tasks:

• Maintain financial records. Many use software such as QuickBooks or Xero to keep the records organized. Ecommerce stores can connect Shopify Balance to QuickBooks Online so their transactions sync automatically.
• Prepare financial statements. They prepare balance sheets and profit and loss statements, as well as create cash flow statements that show how cash moved during a set period. An accountant may prepare reports under generally accepted accounting principles (GAAP) in the US when a lender or investor requires them. Businesses with international reporting needs may also need to compare GAAP vs. IFRS (International Financial Reporting Standards).
• Review financial data. Accountants check transaction records and account balances for errors. They may also spot unusual activity that could point to fraud. Finding a duplicate charge or missing payout early gives a business time to correct the records before filing taxes.
• Manage payroll. They calculate employee pay and record payroll expenses. They also track payroll taxes and benefit deductions. Accurate payroll records help businesses pay staff the right amount and report employment taxes correctly.
• Track budgets. An accountant compares actual sales and expenses with the amounts in a budget. If inventory costs are higher than planned, the accountant can show how the increase affects cash or profit. 
• Plan and prepare taxes. Accountants also organize tax records and prepare business returns. They can also identify deductions and credits that apply to the business. The IRS explains that tax professionals can advise small businesses on business structure. Ecommerce stores can use Shopify Tax to calculate sales tax at checkout while an accountant verifies the rates and prepares the required filings.
• Advise on financial decisions. They can show how a large inventory order would affect cash flow. A store can use those figures before committing cash or applying for a loan.

Accounting automation can handle repeated tasks such as data entry and invoice processing. In the Thomson Reuters 2025 Generative AI in Professional Services Report, 77% of surveyed tax and accounting professionals suggested tax research as a use case for generative AI, while 63% suggested it for tax return preparation and 57% for accounting and bookkeeping.

Browse the Shopify App Store to find accounting software that integrates with your ecommerce store.

4 types of accountants

1. Public accountants
2. Government accountants
3. Management accountants
4. Auditors and forensic accountants

There are different types of accounting jobs. Many professionals focus on one area so they can learn the rules and financial problems that affect their clients.

1. Public accountants

Public accountants work for accounting firms or run their own practices. They prepare tax returns and financial reports for individuals and businesses. Some also conduct audits or help clients apply for a loan.

In the US, public accountants who use the Certified Public Accountant (CPA) title must hold a state license. Earning the license requires passing the Uniform CPA Exam and meeting strict education and experience requirements, according to the National Association of State Boards of Accountancy (NASBA). Each state has its own set of eligibility rules.

NASBA also states that every accounting firm in the US must register with the board of accountancy in the state where its professionals practice.

2. Government accountants

Government accountants work for public agencies at every level. They track how public money is collected and spent, and prepare budget reports and check whether agencies follow financial rules. 

Their work shows officials whether public programs are staying within budget. Some government accountants also audit people or businesses that are subject to government taxes or regulations.

3. Management accountants

Management accounting professionals work inside one business or government agency, preparing budgets and cost reports for its leaders. Their view of the organization’s finances allows them to compare results with the budget and explain where money went.

Some supervise accounting teams or move into roles such as chief financial officer. This may require Certified Management Accountant certification, which covers skills such as financial planning and business decision analysis.

4. Auditors and forensic accountants

Auditors and forensic accountants can work for businesses or public agencies. Auditors review financial records for errors, and forensic accountants investigate suspected fraud or other financial misconduct.

An accounting audit is a structured review of financial records and the processes used to prepare them. The review checks whether the financial statements accurately represent the organization’s finances. Auditors generally fall into two groups:

• Internal auditors. Internal auditors work for the organization they review. They examine accounting records and internal controls to find errors or weak processes. A Certified Internal Auditor credential may be available to those who want to be recognized as professional internal auditors.
• External auditors. External auditors work for independent firms and review client organizations. They examine financial statements and issue an opinion on whether the statements are fairly presented.

Forensic accounting uses financial records to investigate suspected fraud or illegal activity. A forensic accountant may trace transactions or collect evidence for a court case. Some earn a Certified Fraud Examiner credential to demonstrate their fraud investigation skills.

What to know before hiring an accountant

It’s important to understand what parts of your business would benefit from having an accountant before hiring one. Here’s what to consider and what you should do to prepare.

What to look for in an accountant

Hiring the right accountant starts with deciding what you need them to handle. One business may need someone to file a tax return each year, while another may require monthly bookkeeping or financial reports. Determine the work you need done and how often it requires attention before contacting candidates. 

Look for an accountant who has worked with businesses like yours and offers the services you need. For example, experience in ecommerce will help you track data like shipping costs and SKU profitability. 

What to prepare

Regular financial reviews are common among retailers. According to a 2025 Shopify survey of store owners, 41% said they review their finances daily and 69% do so at least weekly.*

Shopify Finance products lets store owners review earnings and spending in the Shopify admin alongside any repayments they owe. Keeping those figures organized gives the accountant current numbers to review.

Prepare the following information:

• Your business goals. Share what you want the business to achieve over the next 12 months. The accountant can use each goal to decide which figures to watch and how often to review them.
• Your business plan. Bring a current plan that explains how the business makes money and where its main costs come from. A lean business plan can give an early-stage brand the same overview in a shorter document.
• Your profit margins. Bring recent margin figures so the accountant can see how much sales revenue remains after costs. Shopify’s free profit margin calculator can calculate the figure for you.
• Your expenses. Prepare a detailed record of what the business spends. Many business costs may be tax deductible. Accurate financial records allow the accountant to identify which expenses qualify and what proof is needed.

How to find and hire an accountant for your business

There is no shortage of accountants available in the US. The Bureau of Labor Statistics projects employment of accountants and auditors to grow 5% from 2024 to 2034. That rate is faster than the average for all occupations. The agency also projects about 124,200 openings each year on average.

Once you’re ready, take these steps to find and hire a business accountant.

1. Build a shortlist

Find candidates by searching for local accounting firms or even asking other business owners for referrals. Learn each one’s credentials, along with how much they charge for their services and under what pricing structure.

Decide which candidates meet your business needs and can fit in your budget and create a shortlist.

2. Check qualifications

Confirm each shortlisted candidate’s qualifications. Some states have an online database to check if a CPA is licensed. NASBA also offers a public search tool to verify CPAs and firms in US jurisdictions. 

The IRS guidelines for choosing a tax professional explain that every paid tax return preparer needs a valid Preparer Tax Identification Number. The IRS also has a directory of federal tax return preparers you can use to check credentials and select qualifications.

3. Interview candidates

Ask who will handle the account and how often they will review the books. Find out if the preparer will remain available after filing in case the IRS has questions. 

Give each candidate a real example from your business such as a large inventory purchase. Their response can show whether they understand the decision and can explain its financial effect clearly.

4. Compare costs

Accounting fees vary with the amount of work and its complexity. A one-time tax return may have a fixed fee. Monthly bookkeeping or advisory work may require a recurring fee. 

Request a written quote that explains which services are included. Ask how the firm bills for work beyond the agreed services.

5. Complete onboarding

Once you’ve chosen a suitable accountant, proceed with the onboarding process. Share prior tax returns and current financial statements. Provide secure access to the accounting software and ecommerce records they need. Agree on filing deadlines and set a schedule for regular financial reviews with your chosen accountant.

Benefits of hiring an accountant for your business

An accountant can reduce the time an owner spends managing financial records while improving the quality of the information used to run the business. Key benefits include:

• Smarter financial decisions. A good accountant, for example, may be able to create a cash flow forecast that can show how a large inventory order might affect the money available for bills. Owners can use that forecast to decide how much stock the business can afford at any given time.
• Fewer errors and less administrative work. Regular account reviews can catch duplicate transactions or missing payouts before they affect financial reports. In a 2025 Gusto survey, two-thirds of small business leaders said their accountant made them more productive.
• Clearer tax and financial reporting duties. An accountant can identify which forms the business must file and when they are due. They can also prepare the records needed for payroll taxes or an audit.
• Potential tax savings. An accountant can identify deductions and credits that apply to the business. They can also document those claims and calculate estimated tax payments.

*Based on a 2025 survey of 500 Shopify merchants conducted in English across Australia, Canada, the United Kingdom, Ireland, New Zealand, and the United States. Respondents were established merchants with two or more years on the platform. Results reflect the experiences of this specific sample and may not be representative of all merchants.