Need a reliable provider to settle your accounts but do not know what to look out for? Here's what to take note of when choosing your right accounting partner.

Selecting the Right Accounting Services for Your Business

 

How do you choose an accounting service for your business?

This question may be more complex than you think as there are several aspects to consider. You want to work with an experienced accountant or certified public accountant (CPA) who knows your industry and related business structure.  Sometimes it is a matter of understanding what businesses of your size commonly use and why. For instance, small businesses may prefer an accountant, while larger businesses may benefit from an accounting service with certified public accountants.

A few aspects to consider about your business includes how to meet financial needs, how will an accountant make a difference, and what information do you need to know about your business in order to help it grow? Do you need assistance with financial statements and checking their accuracy?  Do you need direction in how to improve financial functions behind your business? The right accountant can help answer these questions and more.

When to Consider Hiring an Accountant or Accounting Service Firm

A small company may consider using financial software programs to assist them in managing cash flow, financial reports, and other related matters. Yet, there are business owners that may not have a clue on how to use financial software which is a big problem. This alone signals the need for a financial expert to help guide you and your business in the right direction. Using accounting software may be okay in the beginning, but as your business grows you may take on more financial responsibilities.  In this case, you may want to consider shifting certain responsibilities to an expert that is certified to handle such activities such as tax filing, tax planning and business planning.

Keep in mind, accounting firms may be beneficial for those who are expanding their business and want detailed assistance in planning its financial future. Small businesses often compare options when selecting an accountant or accounting firm. Most may start with an accountant due to smaller volume of finances to manage.  But, an accounting firm can offer benefits any size business can utilize.  More businesses are using accounting firms for managing financial books, tax services, and up-to-date technology with accounting software programs that can be managed by the firm for your business.

Want to Start business in Singapore
Want to Start business in Singapore

Checking References and Interviewing Potential CPAs

There are businesses, no matter their size, cannot afford to make a mistake such as choosing the wrong accountant or accounting service.  This is something to take into deep consideration as you are giving permission for a financial expert or entity to access personal business data. You need to review factors that show trustworthiness, reliability, and confidentiality will be maintained. To help you explore these aspects you should conduct interviews with potential candidates, whether it is an individual accountant or firm.

Three important elements to look for during the interview process includes

  1. level of software knowledge,
  2. do they have expertise working with companies of your size,
  3. and what kind of experience do they have providing services for your industry.

If you are considering a firm, ask about members who will work with your account information.  All communication exchanged should be clear, concise, and to the point. Checking references is important as they can influence your decision. 

  • What have others said about their services?
  • What are reasons why they would recommend the accountant or firm?

Think about how much time you may need to make your decision. It is possible to wait too long; few businesses have done this and have received negative results affecting company growth.

Consider Referrals from Business Colleagues

Some of the best tips in finding reliable business services have come from word-of-mouth referrals.  This is good insider information you can use to your advantage in making a good choice for your business. After all, when you connect with those in your industry you gain more insight on options available to you. Think about other people you connect with within your industry and mention you are seeking accounting services for your business.

You have a few options depending on your industry and type of accounting service you want.  Aside from colleagues, you can consider other relationships you have to help you get more leads such as friends and business partners.