'We should change an accounting firm'
This is heard sooner or later in most companies in Poland. Then, more questions follow: ‘Which firm should we choose?’, ‘What services to opt for?’ and ‘What to look for when searching for an accounting firm?’. The answer to these questions is crucial, because choosing the right firm is a strategic decision. It determines the company’s future operations – its security, tax burdens and opportunities for grow. Here are 6 tips to consider.
An accounting firm should provide support that is relevant to the organisation’s development stage. A startup has different needs than a fast-growing or well-established company. In the early days of company’s operations, it is vital to keep costs down so it is worth opting for simple, standard solutions, which, although they do not include a wide range of services, are less expensive. On the other hand, fast scaling businesses and those with established ground should choose comprehensive solutions that give solid backing for the company’s development, but are often more expensive. What else should you consider when choosing an accounting firm?
1. Business objectives
The first important step is to define the goals your organisation wants to achieve through cooperation with an accounting firm. Ask yourself about its scope: should the firm handle all accounting and tax matters, or manage only some selected tasks? It is also important to determine the model of cooperation: for some companies, frequent contact will be crucial, while for others, efficient and timely accounting without ongoing consultations will suffice.
The scope of services may also vary due to the company’s internal administrative resources. Organisations with well-established processes and own staff can perform some tasks internally, thus reducing costs. On the other hand, where such processes are not in place, broader support should be considered, including in terms of creating such processes between the company and the firm, and within the organisation itself.
Before choosing an accounting firm, decide whether it should be solely a contractor or rather a consulting partner providing support in the company’s decision-making process. A company that only needs its books to be correct has different goals than one that seeks ongoing support in financial management. All this should be analysed in the context of the current development, depending on whether it is in the initial, expanding, scaling or restructuring stage.
2. Required services
Consider only those firms that offer services that meet the actual needs of your company. Some companies may only require document posting, while others may need management reporting, tax consulting or assistance in analysing financial data. Also check whether the scope of cooperation can be extended as the organisation grows, and how more advanced services are provided. Is tax consulting available on a permanent or ad hoc basis? At this stage, consider whether you need management reporting, which is a great support in making business decisions and managing the company’s finances, or whether you only need accounting and simplified reports.
3. Accounting firm experience and clients
In accounting, it is important not only to understand the regulations, but also the business specifics, so select an accounting firm that has experience in working with companies in your industry and at a similar stage of development. Check the firm’s clients to see whether they are only small entrepreneurs or also those with foreign capital.
Choose a service provider who will understand the specifics of your company’s business model and its needs.
4. Working practices and operational standards
How the firm operates has a direct impact on seamless cooperation. Find out what accounting systems the firm uses and whether they are compatible with the tools employed in your company. Check whether clients have designated account managers who are familiar with the specifics of their organisation, or whether they are each time contacted by a different person. The latter can negatively affect communication and understanding the client’s business challenges. On the other hand, an assigned account manager regularly monitors changes in regulations affecting the client’s operations and ensures accounting and settlement tasks are completed in consistent and secure manner.
Pay attention to automation and state-of-the-art solutions, such as electronic document circulation or ‘zero-paper’ policy. They significantly improve operations and reduce errors, so it is worth considering firms such standards in place. Check the firm’s opening hours and the continuity of service in unforeseen circumstances, such as holidays or the absence of an account manager. Data security is also important – established procedures, compliance with the GDPR, backup systems and certificates held (e.g. ISO 27001 standard for Information Security Management Systems (ISMS)). The processes and scope of responsibility should be understandable to both parties and clearly defined prior to signing a cooperation contract.
5. Communication and relationship
Even the best-organised processes will fail to be effective if communication with the accounting firm is difficult. Pay attention to whether the office ‘speaks’ a business language or it only quotes regulations and articles. Proactivity is also very important as informing about changes in the law that may affect the company’s operations even before the new regulations come into force is vital. This allows the organisation to stay prepared and keep things under control.
Availability and manner of communication are also important in everyday cooperation. Check whether it is possible to have a brief chat with your account manager over the phone, contact them by e-mail or arrange a meeting at short notice. For many companies, consulting with a tax advisor as part of the cooperation is also important, so seeking additional support externally is not required. Efficient cooperation is based on a well-trained team not only regarding business matters, but also in terms of good communication skills. Clear communication rules between your company and an accounting firm will help avoid misunderstandings, frustration and mistakes. It is the quality of this relationship that often determines whether cooperation with an accounting firm proves to be supportive for the company.
6. Testimonials and service prices
When comparing offers, you should consider not only the prices, but also how an accounting firm operates on the market. Since accounting services are not strictly regulated, customer testimonials, information about the length of market presence, and additional certificates, such as tax advisory services, are beneficial. The credibility of an accounting firm is far higher if it holds non-industry certificates, such as for example quality and safety standards (ISO). These testify to well-organised processes and a responsible approach to customer service.
Civil liability insurance is an extremely important issue – not only the conclusion of the insurance contract, but also the amount of the guarantee sum. It is a real safeguard for the company in case of errors and their costly outcomes. When analysing the price of services, carefully check what the offer includes and what you have to pay extra for, and whether you should expect price changes in the future. Also, remember that accounting and tax services are separate areas. In practice, the cheapest offer is not always the best choice. What matters is the value that an accounting firm brings to your company’s operations and the security it provides in the long run.
Choosing the right accounting firm is a decision for years, so take it seriously and analyse the needs and challenges of your organisation considering its current stage of development. It is important to approach this issue as if you were choosing a business partner for long-term cooperation, rather than hiring a subcontractor.
