An outsourced accounting firm is one of your most vital vendors. They are responsible for reducing your tax bill, performing all tasks related to bookkeeping, and warning you of potential financial hazards. Responsibly managed finances allow you to reinvest in your company’s growth, which is every business’s goal. As your business grows, you may likely need a new accounting firm that will be able to cope with your new scale of operations.
The job of an accounting firm is more than just filing tax returns or looking after your books. The firm should be your strategic partner, helping you in difficult situations and guiding you towards new and better opportunities. As such an integral part of your business, it can be hard to recognize the need for consulting a new firm as your business grows. However, a few signs can help you decide when it is time to hire a new accounting firm.
You are not taken seriously
When you cannot reach your accounting firm on the phone, it is time to acknowledge that the firm is too large to handle your unique needs. You never want to be the smallest client of any firm, as you may not receive the necessary attention given to their profitable, larger clients. Only a few firms maintain the same standard for every client, and they are quite rare. If you find yourself in such a situation, chances are something could go wrong with their work due to inattention to detail. This can lead to a stressful situation and merits a new accounting firm.
Lack of interest
If a situation arises and you must explain your business operations to the firm every time you meet, it is time to find a new firm. This lack of interest means that either you are a small client, or your business is too complex for them to handle. If the firm has not contacted you for quite a while, requiring you to reach out every single time, you are probably better off without them. The right firm for you will stay in contact throughout the year and help you make important decisions regarding your business’s future.
When you continually find mistakes
Because you are spending your useful resources to hire a firm’s accounting services, it is their duty to ensure everything is in place. However, that is not always the case, and you may start finding mistakes in the delivered work. Do not expect everything to be perfect just because you have hired a firm to look after your accounting issues. Instead, complete regular reviews and, even without an accounting degree, you will be able to identify basic errors as you gain experience. When mistakes continually happen, this is the time to look for an alternative option and find a new accounting firm that can accurately handle tasks for you.
Lack of ideas to ease the tax burden
The key to managing taxation issues is being proactive and taking control of matters before they get out of control. Breaking down your business into subdivisions can help you identify the areas that can be focused upon to save you from a heavy tax burden. This is just a basic approach, and every firm may have its own tactic. However, if you do not feel that your current accounting firm is really interested in that matter, you should sever ties with them quickly. You must give yourself enough time to find a new accounting firm and let them understand your business operations. After they are aware of the numbers and other critical matters, your new firm can proactively guide you towards lesser tax burdens.
Only the most basic deductions are presented
Your business is entitled to many deductions, and your accounting firm should be able to identify all of them, not simply basic ones like healthcare and dependent deductions. Your priority should be to improve your business’s cash flow and account for deductions such as a depreciation expense of new corporate assets. Failing to file them will unjustifiably place them of your records, which is bad for business. If your current accounting firm fails to cater to serious deduction matters, it is time to look for a new accounting firm.
You are their largest client
It is neither advantageous to be the smallest nor the largest client of an accounting firm. Once your business grows to a certain level and you become the largest client of an accounting firm, it probably means you must find a firm that will grow with you. This implies that your operations now require professional services and a more qualified accounting firm, which will be able to handle things effectively. An experienced firm is better equipped to handle clients on a similar scale.