Many small business owners try to take on their own accounting tasks when they first launch their business, but there comes a time in every growing company when it makes sense to hire an external accounting service to handle all the financial responsibilities.
The best accounting service for your business will do a lot more than balance your books. They’ll also become your trusted financial advisor, so it’s crucial that you find the best firm for you.
Accounting is one of the most crucial aspects of almost any business. If you intend to outsource your company’s accounting functions to a third-party, it’s necessary to carefully assess every facet of such company’s activities before reaching a conclusion.
Finding the best accounting service for you and your business can seem like a daunting task, but making sure their services align with your needs across different measures, you can be sure that your business will be in good financial hands.
Tips for Choosing the Right Accounting Company
Define Your Needs
The first step in finding the right accountant for your small business is to establish your needs. Accounting services can vary a lot, which means you need to be clear on what your business needs are before you select the right service for you. Ideally, you should ask yourself what do you need an accountant for? Is it to consolidate your annual accounts or manage your payroll, or file tax returns or simply manage the books.
Consider what your business needs from an accounting service at the moment, and what it might need in the future. From your perspective, what is an accounting service for and what will they bring to your business?
Think about what role they’ll play in your business as it develops and grows. Are you also looking for financial advice, budgeting, or help setting financial goals?
Ask Around for Recommendations
Once you’re clear on the kind of accounting service you need, tap your contacts for recommendations. That means asking your family, friends, and colleagues which accounting firm they’re using and if they’d recommend it. It’s also useful to ask business associates who work in similar industries for referrals.
Do Your Research
Some accounting firms might look good on paper, but it’s important to do your research before settling on your final choice.
This might include asking the firm specific questions about your goals and whether they have specialized services to support you.
Ensure That They Are Familiar With Your Niche Industry
You should look for some type of expertise (specialty) in your industry – or similar industry. Those specialties can be based on type of service they provide and type of industry. Some accounting firms partner with networks of other firms and can turn to specialists to resolve certain issues if need be.
The best accountant for you is one who’s aligned with your business and niche industry. Look at the specific industry you’re in and check to see if an accountant has experience dealing with other businesses and companies in your niche.
Find a Referral
Find out which firms your friends and colleagues are using. Ask people in similar industries for names or referrals.
Interviews and Reference Checks
You should also ask to meet the staff members who’ll be servicing your account. These are the people you’ll have contact with the most, so it’s important that they represent what you want and understand your needs.
Make sure you’re happy with the firm’s culture and that everyone’s on the same page when it comes to communication, goals, and needs. This way, you’ll help to avoid potential problems in the future. Check references. This is an important decision and the business owner must perform.
Growth and size of the accounting company
Experience is crucial in accounting. Before outsourcing your accounting functions to any company, do some research on the level of growth of the company in recent years. If the company has shown a positive level of business growth, it could be an indication of the quality of services they render clients.
Find out about the internal structure of the company and the level of experience of the experts they can boast of. Outsourcing to a startup may not be such a good idea, although some may deliver beyond expectations.
Feedbacks from previous customers
Listen to what previous customers are saying about the prospective accounting company you are considering. One easy way to start is to go online and search for reviews. Find out if an unsatisfied client has written a piece about the company or if a satisfied client has recommended them. But do not stop there, ask the accounting company to give you a list of their previous customers. They will have no problem with providing you such a list, if the quality of the services they are giving is top-notch.
Relationship Management
Relationship management is crucial for the success of the accounting functions you outsource. You need to understand how the accounting company you intend to outsource to manage relationship with clients. Consider their communication skills.
Do they often create a communication gap that leaves you searching for more information? Or will language and business culture be a barrier between you and them? You need to consider how well your company can relate with them, share ideas, discuss solutions, establish and maintain a professional relationship.
Avoid the deceit of lowest bidders
There is often the temptation to outsource your business accounting functions to the lowest bidder. A lower amount is not always the best deal – because you have a genuinely reasonable offer does not imply that you have the best in this line.
Professionals in the accounting business are relatively expensive in service delivery. If you intend to outsource to a professional accounting firm, be ready to pay a competitive price. Just like in any other industry, there are charlatans in the accounting business too. One of the easiest methods these charlatans use to get victims is offering prices that falls below the normal competitive market price.
While the lowest bidder may not be the best option, the most expensive accounting firm may fail to deliver on its promises. As such, do your best to strike a balance between a successful track record, expertise and competitive pricing when selecting an accounting company.
Consider Your Communication Requirements
At the end of your first meeting with the accounting service, make sure they understand your requirements. This is especially important when it comes to the amount of advice you’ll need and the level of communication you want from them.
Your requirements here will depend on your experience and knowledge in financial matters. If you need a lot of help, knowing that they can respond to your communication needs is vital.
Some accounting services fulfill their duties when it comes to the necessary reports but offer little in the way of feedback and communication. Others are happy to offer advice at any time.
Look for a Personal Connection
Although you’re hiring an accounting service rather than an individual team member, it’s vital to feel a positive personal connection to the firm and their culture.
The right accounting service will make a huge difference to your business. This is especially the case if you need a lot of advice and financial guidance. As such, it’s crucial that you’re comfortable discussing your finances with them.
You need an accounting service with a team of accountants who are approachable and easy to talk to. After all, you’re entrusting them with the financial future of your business, so it’s important that you can envision that future with them.
Data Security
Although the digital age has opened the gates to faster and more convenient methods of handling information, it also brought along new risks and threats.
Find someone who is proactive in taking regular security methods to keep their clients’ sensitive information safe. Do they use encryption software to handle your private information? What are their practices for data integrity and security?
Data security is as important as your business accounting or even more. Before outsourcing to any accounting company, find out about their security and confidentiality processes. Accounting companies must be able to show that they use modern and secure information technology systems.
Business Growth
Finding an accountant who has an empathetic ear and can truly connect and understand your business is essential.
It is crucial that your business receives all the support it needs and that you are comfortable with the people handling your accounts. Accountants are your trusted business advisors. They can be your source of light when your business is facing uncertainties and they can help you make the right financial decisions when you need some guidance. Look for an accountant who would treat your business affairs as they would treat their own.
By hiring a professional and reputed outsourcing accounting company, you can get abundant benefits like cost-savings, expertise and many more.
If the way toward choosing an outsourcing company appears to be overwhelming, you are most likely doing it right. An exhaustive thought of all the significant factors with a look past the conspicuous criteria is the best way to arrive at the best choice for your business and your particular conditions.
BookRobo is a professional accounting firm based in Dubai. Our services include accounting & bookkeeping services, excise and VAT tax services. If you are looking for an established accounting company who will provide you with bespoke accounting services, send us an email at [email protected] or give us a call on +971-4-3244811 for a free initial consultation.