How to Find the Right Bookkeeping and Tax Service
When starting and growing your business, delegating tasks can be a challenge. How much can you feasibly do by yourself, and where should you hire help?
Since most people don't come from an accounting background, hiring a bookkeeping and tax service is virtually always the first responsibility that gets outsourced. Accountants are often chosen for expert guidance and getting to know your business, in addition to simply performing required services like tax preparation.
According to CPA Practice Advisor, a majority of business owners (86%) feel that their accountant is a trusted advisor. It jumps up to 88% when the accountant offers the ideal level of service. However, not all business owners receive the appropriate level of service or know how to communicate their needs in this area.
It's important to choose a bookkeeping and tax service that specifically aligns with your business needs. Here are the factors that you need to consider when selecting the right accountant.
Start By Assessing Your Business's Needs
If you're in the restaurant business, knowing what goes into a delicious dish and enchanting atmosphere is only part of the challenge.
For example, a technology business can ace product development and rapid prototypes, but it's also integral to understand the back end of the business.
No matter what field your business is in, you need to become familiar with its tax and accounting obligations on the surface level.
Retail businesses often struggle with information systems for inventory. Software's common pain points are figuring out cost recovery and which expenses qualify for complicated tax credits.
Assess where your industry as a whole tends to run into problems and areas where your business specifically needs professional assistance.
Define Your Service Expectations
Once you've identified the pain points for your business, it’s time to think about what you really need from a bookkeeping and tax service. In order to ensure that you get the appropriate level of service, it's best to clearly and definitively outline the services that you need.
This can include:
Tax preparation services
Bookkeeping
Financial analysis
Assistance with loan and grant applications
And more.
Conversely, if you don't need a comprehensive suite of services because they don't fit your industry or company size, you shouldn’t pay for what you don't need.
Is the accountant going to be fairly hands-off, just someone you'd like to contact for year-end tax planning and other annual check-ins? Or do you want more frequent reports and involvement if you expect transaction volume to significantly rise? Specifying these needs upfront respects both your time and the accountant's time.
Search for These Qualities in an Outsourced Bookkeeping and Tax Service
Qualifications and Expertise
While some accountants are generalists who work with a variety of clients, many have an industrial specialty or two after getting established. It's absolutely preferable to hire a bookkeeping and tax service that demonstrates knowledge and experience in your industry or field. They're more familiar with common pain points for your field, along with tax benefits and technical solutions that can make your business more efficient.
Services Offered
Hand in hand with industrial specialties, the services should align with what your business needs on an ongoing basis. If there are additional services you don't need, see if you can cut your agreement down to just the ones you want. Ask if they have additional or customized services that might not be advertised.
Software and Technology Compatibility
Bookkeeping and tax services may already work with the tools that you have, or integrate new solutions into your existing information systems. Ask questions and read client testimonials to get a feel for how smooth the transition will be on the technology side.
If your business is very new, and you have not yet set up these systems, ask how much onboarding and ongoing support they can provide. Whether your business is new or established, services that use cloud-based tech are the best option. They provide the most flexibility, scalability, and real-time features.
Cost and Pricing Structure
Bookkeeping and tax services utilize a variety of pricing models. They include hourly fees, project/flat rates, retainers, subscriptions, or a hybrid model depending on the services you need.
It's crucial to discuss pricing upfront so that there aren't any disputes over fees. Project-based pricing is often the best option for business owners so that it ensures you only pay for the services you absolutely need.
Communication and Reporting
Make sure that you discuss how often you want to receive reports, the level of detail expected, and how you will communicate. Regular and clear communication is direly important, and you need a provider that simplifies communication in a way that works for you.
Searching for a Bookkeeping and Tax Service?
The right bookkeeping and tax service will serve as a strong partnership invested in seeing your business succeed. They will help you achieve your financial goals and stability while also being on the same page in terms of services provided, communication styles, and knowledge in your field.
Accounting Made Accessible can provide the ideal accounting solutions for your business. Contact us today to speak to one of our friendly and professional accountants.