Companies have to take time to decide carefully as there are a lot of aspects to be considered before taking the plunge. As they have to entrust the financial details of the business to an unknown firm, they need to double-check. It is in their best interest to have an experienced, credible, and reliable service handling one of the strategic areas of the business. An efficient accounting partner will save time and money for the company.
Here are some important areas to look into before deciding the right partner:
It used to be convenient if the accountants were located nearby. But today, more companies are transacting business online and using cloud-based technology to manage their operations. This means that location has become less of a problem. Using cloud accounting, the company and the accountant can view identical real-time data at the same time, regardless of location. The decision about the accounting service depends on what suits the company best and how they want their finances to be handled. The service partner can be based anywhere in the world and still collaborate with the company to complete tasks because of which compromises based on location don’t have to be made.
Companies need someone who has experience preparing tax returns and financial documents for businesses of comparable size and revenue to theirs. If the company uses cloud-based accounting software for its business, the service provider has to be savvy with cloud accounting. It’s an added advantage if they’ve worked in organizations with similar market structures, as they will already be aware of the unique needs of the business. Companies can go through the accounting partner’s previous client list and find out how their clients have grown and developed, which will help them decide better.
3. Division of work:
Companies have to get involved, even if the work has been entrusted to someone else. It is easy to hand over bundles of work to the accountants and just forget about it, but it is not the most effective approach. They should take charge and take part in the processes so they can get a better grasp of expenses and revenues in real-time. They can choose to deal with the basic accounts in-house and hand over more complex tasks such as bank account reconciliation and filing tax return forms to the accountants to balance out the work.
4. Saving money:
The best accountants are proactive and save money for the business. They will warn the company of pitfalls and advise them against certain decisions. They will be well-versed in tax law and help the company reduce taxes. They won’t take things far and risk operating the business illegally.
5. Accounting software:
Accountants have their own preferred accounting software. Companies have to be careful regarding this and can’t risk using different software, as that will lead to issues sharing data. It can also result in errors and leak sensitive financial information. A good option is to opt for a collaborative, cloud-based accounting software with encryption built-in. This means the organization doesn’t have to worry about the risks involved in exchanging data back and forth.