Did you know: more than 1/3 of small businesses in the US choose to outsource their bookkeeping?
The benefits of doing this are manifest. Businesses can save money on an expensive in-house accounting department, entrust their financial operations to a team that has expertise and experience, and easily scale their accounting services.
But how can you avoid the bookkeeping firms that won’t prioritize your company’s best interests?
Keep reading to discover ten tips to help you find a bookkeeping firm worthy of managing your business’s finances.
How to Determine the Quality of Bookkeeping Firms?
If you’ve concluded that outsourcing your financial functions will save your business money and hassle, you now need to locate a high-quality bookkeeping firm that will provide efficient services.
Here are ten things to look out for in order to avoid an illegitimate accounting firm.
Ask the bookkeeping firm to put you in touch with some of their existing clients. This way, you can verify first-hand whether they provide excellent customer service or if they have helped other businesses maximize tax deductions, for example.
Predicting what will come next is an essential skill for outsourced bookkeepers. Are they aware of upcoming changes to tax law? And do they have suggestions for how to optimize your financial functions?
Inquire whether the bookkeeping firm has any safety-nets. Do they offer full transparency, and what are their auditing procedures?
4. Industry-Specific Knowledge
Do they offer a one-size-fits-all service? Or does the bookkeeping firm have experience and insight into your business’s specific requirements and concerns?
Effective communication within a business is crucial for its success. The same goes for the relationship between a company and its outsourced bookkeepers.
Look for a bookkeeping firm that you can envisage a professional relationship with. This means a team of friendly, transparent, and charismatic individuals.
Ask to see their Securities and Exchange Commission (SEC) filings and their certificate of liability insurance. Are they a nationally recognized bookkeeping firm?
Up-to-date technology is a must for outsourced bookkeepers. Firstly, the savings they make in labor through automated processes translates to lower costs for you.
Secondly, using cloud-based technology is essential for security and back-up purposes.
A good indicator of a bookkeeping firm’s expertise is to ask them a hypothetical question to see how they would respond to a certain situation. This can give you an insight into how they will deal with any future issues that might arise with your business’s finances.
Do they offer on-call support? Is it possible to request in-person meetings with the person who manages your account?
These are important questions that will help you ascertain the level of communication you can expect.
When it comes to your business’s finances, you’re looking for safe hands, not an experimental newcomer. Look into the history of the company, and make sure they have hands-on experience so that you feel comfortable entrusting them with your business’s financial operations.
Which Bookkeeping Firm Is Right for Me?
Here we’ve looked at some of the top tips to avoid ineffective bookkeeping firms.
Whether you’re looking to outsource your payroll or your accounts payable department, finding a reputable and effective bookkeeper is essential.
Schedule a free analysis today from The Accfin Group and we’ll provide you with a customized plan for your business.