Every business owner knows that accounting is one of the most critical aspects of their company. It’s no wonder, then, why many companies seek out accounting firms to provide this service for them.
However, before hiring an accounting company to work for your company, you’ll want to ask a few questions first. You can read all about these questions and more accounting company hiring tips in this blog post.
What Accounting Services Do You Provide?
Every accounting company is different. Some companies may specialize in accounting for a particular industry. Others will offer accounting services to any business that needs them.
These are just two examples of the many differences you’ll find among accounting firms. And this means that before hiring an accounting firm, it’s critical to know exactly what they provide. Be sure not to assume anything when seeking answers to this question.
For example: Do they do payroll? What about tax preparation?
Knowing what accounting services you need will help you find the right accounting company for your needs.
How Do You Manage Clients?
Some accounting companies will treat you like a number and give little to no attention to your needs as their client. Others may provide personalized service that makes it easy for you to communicate with them.
By asking this question, you’ll be able to find out how well an accounting firm provides customer service. And this will happen before signing up with them or committing any work into their hands.
Finding a company that provides personalized accounting services is essential for several reasons.
First, it shows you that they value their clients and want to provide them with the best possible service. All accounting companies should do this, but some may not take the time to talk with you. This can be incredibly frustrating if you have questions or concerns about what’s going on in your financial records.
However, when an accounting firm makes communication a priority, there will never be any surprises when working together. They will address every question and concern: which means fewer headaches later on.
How Long Have You Been in Business?
Before hiring an accounting company, know how long they’ve been in business.
This is an excellent question because it helps you determine how much experience the accounting firm has. Many benefits come with working with a more experienced accounting company. And that’s from knowing what works to what doesn’t work for your accounting processes.
Experience also means knowing accounting regulations and how to follow them.
But on top of all this, experienced accounting companies can provide better service overall. They understand the accounting process in-depth, which allows them to work more efficiently with clients like you.
When hiring an accounting company, ensure that they have plenty of experience under their belt. Remember: there are many benefits when partnering with an accounting firm that knows what they’re doing.
What Are Your Fees?
Another critical question to ask accounting companies is about their fees.
You don’t want to hire an accounting company that charges too much for the work they do. At the same time, you also don’t want to hire one with such low prices that it’s suspiciously good to be true.
Finding a happy medium in this regard will provide you with excellent accounting services at reasonable rates. And this means more money saved and invested into your business later on.
Don’t hesitate to ask accounting firms what they charge for various accounting services like audits and tax preparation. This not only shows them that you’re serious about getting down-to-business, but it helps ensure success before committing any of your resources or finances.
What Would You Need From Me?
Before hiring an accounting company, ask them what they need from you.
This is a simple question that tells the accounting firm exactly how much support and resources they’ll have access to while working with your business. An experienced accountant can work independently on projects without needing too many of your resources. But it’s important not to forget about their needs as well.
Depending on the accounting firm that you choose, they may need access to your accounting software. Or perhaps they’ll need information like contact details for all of your employees and tax forms filled out by accountants in advance.
Whatever it is, make sure that you’re aware of what accounting firms will ask from you. When you know what they’ll need, it will speed up the accounting process as a whole.
Can You Provide References?
An accounting company’s previous work can tell you a lot about them.
You should always ask accounting firms for references from clients like you and check them out thoroughly. These reference checks will reveal more information about how well they communicate and deliver results.
You want to hire an accounting company that has experience working with businesses just like yours. So don’t hesitate to ask for references. This is one of the most crucial questions to consider while selecting accounting services that suit your business best.
Are You Licensed?
Licensing is a must-ask accounting question.
Accounting regulations are strict and complex depending on the state you live in or your industry vertical. So by asking accounting companies if they’re licensed, you’ll get an idea of what accounting work that company can legally do for your business.
For example, not all accounting firms will help with tax preparation. Some lack the necessary licenses from their local accounting board/association. So if you need accounting or tax services, make sure that the accounting company is authorized to provide those specific accounting services.
You can find out if accounting companies are licensed by calling your state’s accounting board or association. You can also ask the accounting company directly about what licenses they hold and if those licenses allow them to do accounting work for you.
CPA Hiring Tips: What Is Your Software?
An accounting company’s accounting software can tell you a lot about the quality of its work.
If they use expensive accounting software, it means that they’re likely to perform better than an accounting company using cheap or free tools like Excel spreadsheets and Google Docs. So don’t hesitate to ask what type of accounting software the firm uses while researching various accounting firms in your area.
You may also want to inquire if any special features make this particular accounting service stand out from others. The more advanced the software is, the more accounting work it can do for you.
And accounting companies with advanced accounting software plus years of experience will be able to help your business grow faster and better than other accounting services that just don’t have as much accounting knowledge or expertise.
Do You Offer Cloud-Based or Paper Solutions?
Cloud-based accounting software is growing in popularity.
But some CPA firms still use paper solutions, which means that they’ll need to go over your information by hand and type it into the system later on.
You want to choose an accounting company that offers cloud-based services. This will allow you and your CPA to work together in real-time, ensuring accuracy and accountability for both parties involved.
But if the CPA firm doesn’t offer online solutions, ask them about other digital tools they use like Skype or Zoom to stay connected while working on projects together. You can also find out whether this particular CPA company has a mobile app.
How Often Do You Audit Your Clients?
It’s essential to know how often your CPA audits clients.
All accounting firms should have a policy on whether they audit their clientele and the frequency of these audits.
If an accounting company does internal auditing frequently, it means that they’re likely very detail-oriented and thorough. So make sure that both internal and external audits are part of the CPA company’s overall reporting process before hiring them as your business accountant or bookkeeper. That way, you’ll be able to access better accounting services that meet your business needs.
What Are Your Credentials?
CPA firms should specify what credentials they hold.
Not all CPA titles are equal, and you’ll want to know if the CPA firm holds any additional designations in accounting or tax services that will further benefit your business’s needs. For example, is this company a member of ACFE (Association of Certified Fraud Examiners)? If so, does it have professional experience in fraud investigation and prevention?
You can ask these questions during the initial consultation to see if the CPA company has all of the right credentials for your business.
Do You Have CPE Credits?
CPE credits are a great way to measure the CPA firm’s commitment to ongoing education.
If an accountancy company holds CPEs in multiple areas of its expertise, it means that its team members have been keeping up with changes and updates within their industry. This can be helpful when you want your CPA to use the latest tools and techniques for better accuracy.
Are you looking to outsource accounting services? Check out Taxfyle now.
Hire the Right Accounting Company
These are just a few questions to ask before hiring an accounting company. They’ll help you to get a better idea of whether the CPA firm’s services will meet your business needs or not.
We hope that our CPA hiring advice has given you an idea of what to look for in CPA firms. For more informative content, keep reading our blog posts.
*Photos by RODNAE Productions