Many entrepreneurs and small business owners lack the time and training to handle complex accounting tasks and bookkeeping duties. Hiring a freelance accountant may come with risks, mistakes and potential financial losses. Instead, they can outsource their accounting needs to an established third-party accounting firm.
Professional Accountability
Integrity and transparency are critical attributes that every accounting firm should possess. The most successful accounting firms will hire ethical, results-driven and detail-oriented professionals. When interviewing potential accounting firms, be sure to ask about their familiarity with the American Institute of CPA’s (AICPA) Code of Professional Conduct. This includes ethical codes for tax reporting, contingent fees, conflicts of interest and sensitive information. It is also a good idea to check with the Better Business Bureau for any serious complaints. Dissatisfied customers are to be expected, but a history of chronic, identical issues is quite concerning.
Accounting Regulations
An important question to ask any potential accounting firm is how they stay up-do-date on accounting laws and IRS tax codes. It is understandably impossible for an accountant to always remain aware of state and national financial regulations, but it is unacceptable to not have a strategic plan for professional development. The best accounting firms will be more than happy to share their reliable and methodical approaches to staying in the loop of law changes and emerging trends. This is often through professional CEUs, industry conferences, national publications and annual conferences. The IRS offers a variety of tax code search engines here.
Technology Expertise
One reason why accounting firms are so successful is because they typically understand and employ the latest technology solutions. Cloud computing, data analytics and mobile technology are actually old news. Today’s innovation is being driven by Big Data, AI algorithms and data mining. Accounting firms sometimes offer web-based platforms for customers, but they may also recommend popular accounting information systems. Either way, these solutions will help with regulatory compliance, corporate governance, financial controls and accounting transparency. Technology is especially critical for lone entrepreneurs who wear many hats at their small businesses.
A final question to ask a potential accounting firm is their experience with audits. Avoid those who casually respond by promising zero risks and guaranteeing full responsibility. Instead, the best accounting firms will be confident in their knowledge and professionalism. Forbes magazine offers an overview of the benefits of outsourcing finance and accounting functions here.