Every business today has to make difficult financial decisions due to the pandemic. In addition to controlling cash flow, ensuring that every expense is correctly accounted for is critical to survival. While some small businesses don’t bother hiring an accounting firm, many companies prefer outsourcing bookkeeping and other accounting-related functions to third-party providers. The advantage of hiring a professional firm is the expertise and experience, especially when you need advice on critical matters related to financing. Also, accounting firms and bookkeeping services like Irena’s Bookkeeping are scalable, which means you can hire them to perform specific tasks only and pay as needed. Here are our tips on choosing the right accounting firm for your business.
Business speciality
Many Central London accountants specialise in providing financial services to specific business sectors. If your business falls under a specialised industry, it would be best to book a firm with experience in your field. This option is ideal for the accountant to work on matters that are already familiar to them. Also, when it comes to filing taxes, they’ll know the specific regulations, laws, and policies that apply.
Service level
Every business has the option to hire a bookkeeping service or an accounting firm that can perform all finance-related functions. Bookkeeping refers to basic tasks such as keeping records, tracking invoices, and balancing financial statements. Accountants, on the other hand, can also prepare reports, analyse data, and make recommendations. Choosing whether to hire an accountant or a bookkeeper depends on the immediate needs of your business, and can also be affected by whether they have taken a CISA certification exam.
Auditing and other support services
Auditing capabilities are another essential consideration in choosing an accounting firm. Instead of hiring another firm to audit books before tax season, having all services provided under one roof is more cost-effective. It’s also more convenient and efficient, especially when there are plenty of corrections or additions needed to complete all the necessary tax filing documents.
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Security and privacy
Financial data is proprietary information you should only share with a firm you trust. If possible, look for an accounting firm referred by trusted individuals in your business network. You also need to look into the privacy and security protocols employed by the accounting firm, especially if they will work remotely and rely on the internet. Most firms today use cloud-based accounting solutions for easy sharing. And while it may appear more convenient, it’s necessary to ensure that your company’s information remains protected from potential cyber-attacks.
Set KPIs aligned with company goals
One last thing to consider is whether the accounting firm will comply and adjust to KPIs and other goals set by your company. Now that businesses are having a hard time because of the pandemic, companies should be transparent with plans and contingency steps if things take a turn for the worse.
Final thoughts
The accounting firm you hire to assist with financial preparation and planning should act as a partner to help your business overcome the challenges brought about by the current economic conditions. With the tips provided above, you can choose a firm with the expertise and knowledge not only to perform ordinary bookkeeping tasks but also to give valuable advice to the company’s survival.