Running a business and having to meet the demands of customers can already be time-consuming enough, and it’s only a part of the battle. You also have other tasks such as making sure your inventory is in order, safety compliance and planning future developments. But when you add in your financial matters in bookkeeping, that’s a whole other list of things that have to be done and it can get very overwhelming. A good idea is to hire an accounting firm to take over bookkeeping so that you can manage all the other important tasks in your business. There are five things to know about hiring an accounting firm.
1. You Will Usually Save Money Hiring An Accounting Firm Vs Hiring An Employee
Contrary to what you might think, you could actually save money hiring an accounting firm over hiring an accounting firm instead of hiring a single employee to do it. That’s because if you hire an employee as an accountant, it’s going to be a full time job for them and will require you to pay a good salary to them plus compensation and benefits. An accounting firm only charges you there service rates and handle’s the accountant’s benefits from their end. You do need to keep in mind that some accounting firms charge flat rates in various services while others can charge by the hour. Forbes lists questions about service fees as one of the top questions to ask the firm as many will charge based on the extensiveness of their services.
2. The Right Accounting Firms Can Take Better Stock Of Your Business
It does require doing research on an accounting firm or a CPA to make sure you know their specialties, but if you find the right one they’ll be able jump in right away and keep your business on track. You won’t have to worry about them having to learn the jargon or misunderstanding what your business operations are. If you’re unsure about which kind of industries an accounting firm services, make sure you ask the accounting firm which kind of clients they typically service and if they have experience with your kind of business.
3. Different Firms Have Different Specialties
Some accounting firms may just specialize in the basic tax payment and general payroll services, while others may offer a whole comprehensive set of financial data analysis and extensive consulting. You have to take into account your own needs before deciding which kind of firm you should hire. If you have a lot of sales volumes and have cash flowing into not only main expenses but a lot of peripheral activity, a more comprehensive accounting firm may be suitable. According to Inc.com, it’s good to look at a CPA’s credentials to see what areas they’ve specialized in, and if they can vouch for your company’s financial status to entities such as banks.
4. Firms May Offer Consulting For Your Business
It’s sometimes good to get an outsider’s advice on how you should be spending your capital or managing expenses. Appletree Business Services LLC said, “If an accountant can see which inventory is selling better or which services are attracting the most customers while also highlighting areas that are performing poorly, it could help you rethink your business strategies or cut costs in unnecessary areas.” It’s good to know details on where your funds are going to maximize your production in important areas and perhaps lead to savings down the road for big projects.
5. Some Accounting Firms Offer Accounting Forensics
This may or may not be important for your business, but you may want to hire an accounting firm that conducts forensics on your finances. Forensics study where funds have been used or if they’ve been embezzled by any dishonest employees or managers. Sometimes the signs of fraud are obvious with the sudden disappearance of funds on accounts receivable forms, invoices or credit lines, but other times it may be a slow disappearance of money that’s been subtle. Having an outside accounting firm conduct reviews of your funds through forensics could uncover theft or fraud that an employee accountant may not.