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Choosing an Accounting Consulting Firm

Outsourcing your accounting tasks to a consulting service can help prevent tax errors, free up time and resources, reduce your tax bill, and increase your tax efficiency. Although accounting needs can vary from company to company, several considerations cut across the board when choosing an accounting consulting firm.

A recommended way decide on an accounting service is to ask your colleagues, business associates, and friends. Consult the local chamber of commerce, as they might have a list of credible firms in their database. Professional bodies such as the Institute of Management Accountants (IMA), the American Institute of Certified Public Accountants (AICPA), and the National Association of Tax Professionals (NATP) can also be good sources of information.

As you consider the recommendations, ask about their experience, quality of service, level of expertise, and any areas of specialization. In particular, the accounting firm’s experience is critical. Many large accounting firms with years of experience cover multiple industries. Ensure that the firm has previously worked with your particular industry and has also received good client feedback.

Consider the education, qualifications, and certifications of those working for the accounting firm. For example, do they have certified public accountants (CPAs) or equivalent in the firm? A CPA is an accounting professional with at least a bachelor's degree in finance and accounting or an MBA in accounting. In addition, they have met the experience and rigorous exam requirements demanded of that certification.

There are other certifications that you might want to consider, depending on your accounting needs. A Certified Management Accountant (CMA), for instance, can help you in managing business financial performance. On the other hand, a Certified Valuation Analyst (CVA) is accredited in business valuation (ABV).

Another important factor besides the certification, experience, and skills of employees is the firm’s background. Does the accounting service maintain a good relationship with previous clients? How do others rate their communication, timeliness, and teamwork?

Also, does the firm have a defined process for handling your accounting needs? A reputable accounting firm should have a well-defined process for managing and updating your accounting records. Also, what arrangements do they have in place for data security?

For accurate bookkeeping and accounting, accountants rely on software and other tools for operational and professional efficiency. Because accountants use numerous types of software, check whether they are compatible with your internal business accounting system and whether they will give access to what they use. You will, for example, want to know whether the software used by the accounting firm can easily import financial data from your system or export data to yours.

Some accounting firms outsource part of their work to third parties, while others use junior accountants working under the supervisor of a senior accountant such as a CPA. It’s important to clarify who will be handling or responsible for your account. In case of a question, who will be available to answer you?

The firm’s communication channels play a critical role. Do they communicate through email, phone, or in person? Are they available 24/7, or at least when you will most likely need them?

The cost of their services should also be taken into account. Although this will depend on the type of services you seek, it’s key to know the fee structure for different services to ensure that it is within your budget range. Do they charge per hour or on a contract basis? Finally, is there room for fee negotiation or are their fees fixed?

#Ruobing Sun