8 Key Factors to Consider When Choosing an Accounting Service
Legislators every year make small tweaks and changes to existing tax and compliance laws. This may leave business owners scratching their heads with many financial decisions, which involve everything from minimizing tax liability to managing cash flow.
Many accounting companies prioritize being on top of financial reporting services and new tax laws. And because of that, most even offer financial support and help businesses and individuals set the right financial goals and create budgets.
Whether you want someone to go the extra mile in matters related to your finances or need to take care of weekly payroll, you should always consider the following factors to make the right decision:
It is important to know the number of years an accounting firm has rendered services and determine whether their previous employees/clients were satisfied working with the company. Take more time to search online to determine whether the accounting firm has a solid track record for the years they have rendered services.
As far as entrusting someone with the financial matters of business is concerned, it is best to ensure the service provider knows what they are doing. According to experts at BoardRoom, hiring an accountant with five years or more under their belt is advisable.
2. Licensing and Qualifications
Whether you want to hire an individual practitioner or the whole company, you should check as well as verify their academic standings. Mainly, there are two certifications you may check. These include CPAs (Certified Public Accountants) and CMAs (Certified Management Accountants).
CPAs have an undergraduate degree and are experientially and academically qualified to practice at the local level. CMAs also have the same certifications and training, with specialized training involving company management included.
Both qualification levels need constant training so as to be updated with the changes in the industry and must remain licensed or certified. But CPAs are licensed and certified by the Singapore Institute of Certified Public Accountants, whereas CMAs are often certified by the IMA in Singapore.
Like other things, accounting fees differ. And low costs may not always guarantee you quality services. The same faulty cars are dangerous, and low-quality accounting services can be risky to your company. But this also doesn’t mean that expensive services always mean quality and extensive.
A reliable accounting firm must be candid when it comes to its fees. Considering every case is created differently, accounting firms that charge for a certain piece of work give clients insight into their trustworthiness.
Plus, ask an accounting firm whether VAT is included in all the quotable prices, as this is often a sneaky add-on that may cost you a lot. At the same time, you need to opt for an accounting firm that you feel can offer you everything you need, regardless of the cost.
When finding an accountant, ensure you go for one with a great reputation. That means they must have a solid track record for offering the best services, and their team must be highly knowledgeable and accredited.
The best accountant may also help you determine the goals and needs of your business. This will help you get the services needed for your unique situation and can prevent you from paying too much for a package, which isn’t helpful or necessary to your company.
Reputation remains an important aspect for businesses because it impacts everything from the way clients view a firm to whether they can buy its services or products. The most solid way to build a good reputation is to do everything right and by being honest/transparent with your employees and clients.
It is imperative to determine the availability of an accounting service provider. To determine this, know the number of customers they have and whether your projects will get lost.
For instance, if you need an accounting company with experience when it comes to distribution and manufacturing, ensure they have the skills before you sign in with them. Plus, make sure that the company has more time to handle your project and may accommodate the changes.
Determining all these is smart and polite. It often shows an accounting firm that you care about their reputation and only want what is best for your company.
Get clarification if the accounting firm provides various services. Especially when you run a large or small business, you might want an accounting company, which can do more than just complete tax returns. It should also provide you with auditing, succession planning, analysis of cash flow, and financial reporting services, to name a few.
Plus, confirm that the accounting company is using modern technological advancements, such as cloud accounting, that may greatly benefit your company.
Like many business owners, you must ensure that the security and safety of your business data are maintained. Although technological advancement makes the process of taxation more convenient and easier, it also comes with a lot of risks when you work with an unprofessional and unethical accounting firm.
By hiring a professional and trustworthy accounting firm, you should take regular safety and security methods to keep your sensitive data safe. Your accountant must be in a better position to encrypt software you use to file taxes as well as other financial activities to ensure third parties don’t corrupt your data.
It is a known fact that the world of business is ever-evolving. Therefore, you must look for an accountant who adapts to the changing landscape of your business industry.
If you have a small and growing business, there are many untapped potentials, which you may leverage to ensure your company grows.
This is why it is very important to look for an accounting company that clearly understands your business’s goals and is ready to grow with you. And for that to happen, choose a flexible company that positively adapts to your company depending on the current situation in the market.
Whether you have a new or an existing business, including a qualified accountant in your team or outsourcing accounting services from a reliable company is vital. This way, you will be able to focus on the growth and success of your company.