Choosing an accounting firm can be a daunting task. There are so many different things to consider! In order to make this process easier, we've put together this list of considerations that will hopefully help you narrow down your choices.
Types of Services Offered
The first step in choosing an accounting firm is to figure out what type of services you need. The following list contains the most common types of services offered by accountants:
Bookkeeping: This includes the processing of bank transactions, supplier invoices, journals and payroll tax reports.
Accounting and Month-End Reviews: This includes the review of the accounting records, processing relevant journals, preparing reconciliations and identifying any business or tax issues that may need to be addressed.
Reporting: This can range from a basic profit and loss, balance sheet and cash flow statements to advanced reporting, which could include reporting per division, measuring against budgets other non-financial/operational metrics.
Virtual CFO: This can include forecasting, setting and measuring against Key Performance Indicators (KPIs) and strategic business advice.
Tax Services: Tax law is constantly changing—accountants stay up-to-date by taking continuing education courses each year so they know how new laws affect small business owners like yourself! Whether you're running a large corporation or just getting started with your own business ventures there are many benefits from having your taxes done by an expert rather than doing them yourself.
Payroll: This includes processing your weekly and/or monthly payroll for your team and can include processing the relevant payslips, as well as dealing with all the compliance submissions to the tax authorities etc.
Accounts Receivable and Accounts Payable: This can include dealing with your client and supplier queries on your behalf, assisting with resolving issues, following up on overdue accounts, paying suppliers etc.
Education and Experience
When you're choosing an accounting firm, it's important to consider their education and which professional bodies they are registered with. Most professional bodies (e.g. SAICA or SAIPA) have the option to confirm the registration.
Having an accountant that has the experience and understands your industry can be very beneficial. This includes understanding which laws and regulations are applicable to your industry, understanding which software could improve your business processes and which metrics to monitor.
Technology
If important to choose an accountant which is keeping up with the times. There have been big improvements in the accounting industry in decent years, with software like Xero and Dext. These improvements have resulted in the accounting function being integrated into your business, rather than just numbers being processed on a desktop program.
You should also consider whether the firm is familiar with the accounting software you use, whether that be Xero or QuickBooks.
Reputation
It's important to choose an accounting firm with a good reputation. It's a reflection of the quality of the firm and helps you attract clients, employees, and investors.
An accounting firm's reputation will help you attract new clients because it shows that they have been around for a while. A good reputation also means that they are trustworthy—they'll be able to handle your finances properly and won't get in trouble with regulators or other government entities.
Size
When it comes to size, it is important to understand the size of the team that will be supporting you, rather than the size of the firm. Larger firms sometimes have one resource from a smaller team that is allocated to you, which could result in some issues if they get sick or leave. Ensuring you are supported by a team rather than an individual is more important that the size of the firm.
Price
When it comes to price, you probably don't want to choose the cheapest accountant. That being said, you should be able to afford the fees. Ideally, you want to pay a fixed monthly fee that will increase as your business grows.
Location
Although location used to be important, with cloud accounting you are able to work with an accounting firm from anywhere in the country.
Conclusion
The best accounting firm for you depends on your needs, business model, and goals.