Every year, people in business and companies flaw in compliance with legislative laws and tax filings, further messing with their financial decisions and mismanagement of cash flows. Accounting firms come as a life savior as they keep on top of new tax laws and provide the best financial advice to help businesses set realistic budgets and goals.
It is OK to handle bookkeeping and accounting when your company is at a nascent stage. However, as it grows, and it can be overwhelming to manage all tasks alone. You need to hire a specialist of each department, especially the accounts department, to get your tax and business planning going in the right direction.
Benefits of Hiring an Accounting Firm
Here is how having an accounting firm onboard helps:
- Saves time. Accounting is a complicated task and consumes a lot of time. A professional accounting team is trained for the job and completes the work in lesser time.
- Keeps cost down. An experienced accounting firm saves you more than what you pay them. They look after your corporate tax returns and suggest cost-cutting measures.
- Avoids legal complications. An accounting firm keeps track of your transactions in an organized manner and presents them as evidences in case of any legal dispute.
- Offers other financial advice. Accounting is more than bookkeeping and balancing statements. A good firm brings the best solutions to help your business grow in the long term.
How to Choose an Accounting Firm
The right type of accounting firm takes your business to new heights of success. So, if you plan to hire an accountancy service, here is a list of the factors to consider –
Level of Experience
Always look for a competent accountant to manage the financial affairs of your company. Ask for the number of years the firm has spent servicing the local customers and testimonials of previous happy clients. A firm with a minimum of five years of experience in the industry and a successful track record is what you need.
Chartered Accountants (CAs) are highly qualified individuals who have desired studies and ample experience. And are regulated by professional bodies. So, it doesn’t matter what state you live in, make sure your accounting team is duly certified and can add value to your business.
Accounting fees differ from one firm to another – some charge on an hourly basis, and some charge a flat rate for a particular set of services offered. So, you need to know your requirements and the costs before making the final agreement. Just know that the cheapest isn’t always the best.
Depending upon how often you need your accountant’s help, you can hire their services. If you are a budding enterprise, there is no need to hire a full-time accountant. A part-time accountant can manage your accounts well and save on costs. However, things can be different for larger companies. You need a dedicated accounting head to help with tax and cash statement preparations and daily problem solving with finances.