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Take These 5 Tips Seriously While Choosing An Accounting Firm For Your Business

With so many transactions to store, analyze and report, businesses cannot undervalue the necessity of accounting firms. As your business expands, you will expect capable hands on the balance sheets so that you are well-positioned to make informed decisions. Moreover, and quite importantly, governmental oversight mechanisms mandate fair accounting practices unless you wish to attract hefty penalties and imprisonment. If your accounting firm messes up with numbers under your watch, you will have to pay the piper.
The process of shortlisting and selecting a suitable accounting firm for your business cannot be taken for granted. You have to go beyond what you know about the select firm and investigate deep into the credentials and capabilities of the firm and its members. How to go about it? Well, I may have a few suggestions to offer. Over here, you will find five tips for selecting the right accounting firm for your business. So, without further ado, let us take a look at what we have here.

  1. Must be a certified chartered accountant
    The firm you wish to sign up for must be a registered accounting firm. Every country has its own rules and regulations for the registration of such firms. For instance, in the United States of America, every accounting firm is mandated to register with the board of accountancy in the state of operation. Whichever country of operation you are considering, make sure that the firm is registered with the appropriate authority. Moreover, the professionals working in the firm must be certified or chartered accountants.

  2. Do you need mentoring?
    One of the main questions to ask yourself is the type of financial services you require. Some firms are solely involved in technical aspects of their job; that is, they are there to help you compile your documents, prepare reports, and ensure regulatory compliance from time to time. But, more often than not, these firms do not extend any business counsel. In case you are not very experienced or wouldn’t mind extra help in handling the business, you should consider hiring the services of a firm that also provides feedback on business plans. So, figure out the kind of assistance you require before moving forward with the hiring.

  3. It is always better to secure references
    Understandably, references make much of our jobs easier. Trustworthiness is often strengthened upon the reception of references. Many accounting firms flood the market now; all of these come with their own fancy claims and promises, most of which are often too good to be true. With so many choices, it becomes rather difficult to settle on one. If you are stuck in a deadlock, then it is time you consider a few references. Ask around for references, and you will find it much easier to shortlist the best ones to choose from. You should consider contacting the clients of the firms and learn from them about their first-hand experience with the firm.

  4. Your Budget
    Remember, the real question is whether you can afford the fees of the firms. The reason why I stressed figuring out what kind of services you require is that the more specialized services you require, the more cost you will incur. And, mind you, accounting firms can make a hole in your pocket. Make a budget, consider the services you require, compare the fees and the criteria of fee levy among several firms, and then select the one that fits the bill. Take it seriously because these firms will incur a recurring cost on your accounts, and failure to choose the right firm will result in the waste of your time, energy, and of course, money.

  5. Technological orientation
     Modern-day accounting practices have mostly shed the old-fashioned, pen-and-paper methods. Yes, we have not completely done away with these resource-consuming practices but have been gradually transitioning to the digitalization of accounting practices. Technology has made accounting smooth, time-saving, and less prone to errors. Thus, you should, very rightfully, expect sophisticated tools and practices from the accounting firm you wish to hire. They should be able to demonstrate the use of the latest accounting technologies and satisfy your apprehensions that this software would not compromise the sensitive data of the business. If the firm hasn’t embraced relevant technology, then you should not consider it at all.

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Sophie Ireland
SVP for News and Editorial Director. As CEOWORLD magazine's senior vice president for news and editorial director, Sophie Ireland oversees CEOWORLD magazine's journalism and journalists around the world and across platforms. She leads an award-winning team of journalists and newsroom executives who are committed to excellence, innovation and the highest quality reporting and storytelling. Follow her on Twitter, Facebook, Instagram, or connect on LinkedIn. Email her at sophie@ceoworld.biz.