Key Considerations When Choosing an Accounting Firm for Your Business

Hiring an accounting firm for your business can bring with it a lot of benefits. They can work closely with you to uncover opportunities for tax savings and help you better understand where your money is going.

It’s not hard to find an accounting firm for your business, but it can be a challenge to find the right one. There are many different factors that go into choosing the right accounting partner for your business.

If you ask the right questions before hiring a firm, you can save yourself a lot of financial headaches. Here are a few questions to ask before choosing an accountant service for your business:

Ask Which Services They Provide

Every accounting firm is different, and some only offer a certain number of financial services. It’s important to know which services you need and which ones they provide.

Monthly bookkeeping, payroll process, payroll tax tracking, and other services are common among accounting firms. Understand which services you need and make sure that your chosen firm can handle the job.

Ask for Examples of Problems They Solved for Others

While there may be no right or wrong answer to this one, it’s important to ask your potential accounting firm for examples of success stories. They should be able to tell you about situations where they found tax savings for a client or how they helped a client better track their income and expenses.

Be sure to ask them if they can give examples of problems they have solved for other clients. If they can’t come up with anything, that may be a red flag.

Ask How They Will Secure Your Financial Information

Financial information needs to be secured at all times. The last thing you want is for someone else to access your company’s financial documents and use them to hurt your business, even if you don’t know how they do it.

A proper accounting firm will have clear answers for how they secure your financial information. Do they work on paper or digitally? How do they encrypt their computer files? Who has access to physical documents around their office?

Get clear answers to how your financial information will be secured or your business could run into a lot of problems.

Ask How They Calculate Their Pricing and Fees

Just like working with any other type of business, it’s important to understand the firms pricing structure. Do they charge by the hour or by the task? Do they have a flat fee for filing taxes or is it based on the number of required forms?

It’s vital to your bottom line to understand how your new accounting firm will charge you for their services. Nobody wants to run into a surprise bill come tax season.

 Ask If They Have Licenses or Certifications

Financial institutions need to be particular with anyone who represents their company. Quality accountants complete degrees and pass high-level financial testing to gain this distinct eligibility to represent quality accounting firms.

Some accountants also completed additional training and gain extra certifications. These credentials may or may not be beneficial to your business, depending on what they are.

Most importantly, if you’re set on working with a CPA, be sure to do your own research to verify their credentials. “CPA” are three valuable letters in the accounting world, and lesser accountants know that they could potentially claim the distinction without their clients verifying it.

Finally, anyone who handles your business taxes must have a PTIN (preparer tax identification number). Without this number, they legally cannot file your taxes.

Ask About Their Tax Specialties

Most accounting firms can handle any type of business taxes, but certain firms may have specialties for certain types of businesses. Knight Home Care Financial, for example, has a long history in healthcare accounting.

As a business owner, you know the specific, unique aspects of your line of work. If you can find an accounting firm that has experience working with your type of business, they may be a perfect fit.

Between foreign transactions, product sales, service sales, and other aspects of your business, it’s vital that you work with an accountant that can handle it all. Be sure to ask about these specific when interviewing an accountant.

Ask What They Need From You Throughout the Year

Every day of the year is tax season for a business, and just because you’re hiring an accounting firm doesn’t mean you’re off the hook. Ask your potential accounting partner what they need from you throughout the year.

Do they need certain documents submitted every month? Do they prefer to get everything all at once during tax season? Are there certain income streams or expenditures they want to see throughout the year? Make sure you understand your role in the client-provider relationship.

Ask these questions to get a better understanding of your new accounting firm. A bit of research and consideration can make a big difference for your business taxes. When you find the right accounting firm for your company, it will be well worth it.