Selecting an accounting firm is not an easy task. Choosing a firm that aligns with the analyzed needs of your organization can significantly impact the achievement of your company’s objectives and strategy. We all know that accounting is essential for the proper functioning of any business. Accounting operations are governed by numerous regulations, and every company must fulfill its formal obligations, from maintaining accurate records, preparing financial statements, calculating payroll, managing employee matters, to handling tax settlements. Failure to maintain these business responsibilities properly can result in serious legal and formal issues, and even contribute to the company’s bankruptcy.
Key factors to consider when choosing an accounting firm
There are many factors that can influence the selection of the right accounting firm, and these vary depending on the company’s situation and needs.
In today’s environment, competing solely on quality is no longer sufficient. Companies often need to differentiate themselves through speed of response and the actions they take. For quick responses, access to timely and accurate data is crucial for making informed decisions. In such cases, the ability of the accounting firm to provide this data on time will play a key role in the selection process. For other companies, reducing risk might be the most important factor, especially in industries with complex legal systems that require frequent legal consultations. In such situations, an accounting firm’s knowledge of the specific industry becomes critical. Other companies may prioritize online access to data, as it may be a key need for their employees and managers.
One thing is certain – the needs of each company are different. Given that collaboration with an accounting firm is typically long-term, it is worth investing time in selecting the right partner. Therefore, before signing a contract with a service provider, it is important to closely examine your needs, ask yourself what is currently important for your organization, and strategically choose a service provider that can meet those needs.
In this article, we will clarify the subject and highlight key aspects to consider when selecting an accounting firm.
Step-by-Step Guide to choosing an Accounting Firm
Analysis : The first step is a thorough internal analysis. Consider what your company truly needs. Is outsourcing the right solution? It may not always be the best choice. Sometimes, implementing a few internal changes can streamline processes. Before starting the search for external providers, it’s worth conducting a detailed analysis, talking to managers and employees, writing down expectations, and preparing a brief for potential providers. This will significantly simplify the entire bidding process and the final selection.
Market Research : After completing the internal analysis, it’s time to conduct market research and select firms that have caught your attention. Recommendations from acquaintances, reviews, and verifying references can be very helpful. Individuals who have already gone through the process of choosing an outsourcing company may share valuable tips.
Verification of Certifications and Licenses : Make sure the accounting firm holds all the necessary certifications and licenses. Additionally, check the firm in the debtor register and verify its financial stability. It’s crucial that the firm has professional liability insurance, ensuring that in the event of errors, the company will cover the consequences of its actions.
Meetings and Discussions : Meet with representatives of the selected firms to discuss your needs and the terms of cooperation. It’s essential to establish good communication with the potential business partner to avoid unexpected surprises. Drafting a clear outline of required tasks and expected outcomes will save time and money, as the outsourcing firm will be able to prepare an offer tailored precisely to your needs.
Comprehensiveness of Services : Pay attention to the scope of services offered by the accounting firm. It’s advisable to choose a firm that not only provides accounting services but also HR and payroll, management accounting, tax and legal advisory, as well as support in securing financing. A wide range of competencies from a single partner ensures quicker support, reduces the time you need to invest, and increases the chances of identifying both risks and opportunities in your business activities.
Modern Systems and Technologies
The world is moving forward, and digitalization and automation have significantly accelerated. A modern accounting firm should offer solutions that enable electronic document circulation and have the resources to stay prepared for constant legal changes, adapting its tools and systems accordingly. It’s important to ask the potential provider about this, as it will be their responsibility to take these concerns off the client’s plate. It’s also worth inquiring about the management reporting systems the provider uses. Online platforms for employees, where they can access information related to their employment, and for managers, providing online access to key financial data, are becoming standard. The potential of robotics and AI cannot be overlooked here. The development of these tools allows for faster accounting processes and automating certain tasks, which greatly enhances the competitiveness of future partners by speeding up the delivery of financial and management data.
Data Security
A modern accounting firm must provide adequate data security. Data security policies, protection against cyberattacks, and rapid data recovery are aspects worth paying attention to. Verify whether the firm has professional liability insurance and whether the insurance coverage is sufficient. Protecting against cyberattacks is essential nowadays, when corporate data is exposed to various threats.
The Importance of Advisory and Strategic Support
Increasingly, the role of an accountant extends beyond just posting transactions, initiating payments, and preparing financial reports. An accountant is also an advisor to the management, supporting controlling efforts, strategy development, and the achievement of company goals. A well-chosen accounting firm can become a “business angel,” assisting managers in making key decisions. If these are the expectations of the organization, it’s all the more important to thoroughly prepare and strategically plan the process of handling accounting, payroll, and controlling.
Conclusion
Choosing the right accounting firm may seem complex, but it’s an endeavor worth the effort. The right choice can significantly influence the achievement of the company’s strategy and goals, while minimizing risks and saving time. It’s worth investing time in selecting an accounting service provider that will meet your organization’s needs and support its growth.
Below are the key milestones when selecting an accounting firm
Internal Analysis: Define the company’s needs.
Market Research: Conduct research and gather recommendations.
Certification Verification: Check the firm’s qualifications.
Discussions: Meet with representatives of the firm.
Comprehensiveness of Services: Choose a firm that offers a wide range of services.
Modern Technologies: Ensure the firm uses modern systems.
Data Security: Verify the firm’s security policies and liability insurance.
Selecting an accounting firm is a decision that can bring many benefits to the company if made consciously and carefully.
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