How to Choose the Right Accounting Firm
Selecting the right accounting firm to handle essential financial tasks can seem daunting. However, having reputable accounting professionals that you trust provides invaluable expertise and peace of mind. Whether you need help with auditing, tax preparation, payroll, bookkeeping, or advisory services, take the time to carefully research and evaluate potential firms. This comprehensive guide examines the key factors to consider when choosing the best accounting firm or accountant to meet your needs.
Defining Your Accounting Needs
Start by clearly defining the accounting services you require. Common services provided by local accounting firms include:
Bookkeeping - Recording day-to-day transactions, reconciling accounts, tracking income and expenses.
Payroll - Preparing payroll, filing payroll taxes, managing reporting requirements.
Financial statement preparation - Putting together balance sheets, income statements, cash flow statements.
Tax planning and preparation - Helping develop tax strategies, preparing complex tax returns.
Auditing - Conducting audits, reviewing financial records and statements, assessing internal controls.
Advisory services - Providing guidance on financial decisions, capital planning, and high-level accounting questions.
Make a list of the specific accounting tasks you need handled on a regular basis or for specific projects. This will help match you with firms offering the relevant areas of specialization.
Seeking Industry Experience
Look for top accounting firms with extensive experience working with clients in your specific industry. The accounting needs and financial benchmarks vary tremendously across different industries. For example, manufacturing has very different standards and needs compared to retail, healthcare, technology, nonprofits, and financial services.
Choose a firm that understands your industry accounting regulations, financial metrics, ratios, and reporting practices. They should have experience with clients of your size in a similar field. Industry expertise demonstrates the firm's ability to handle your unique accounting needs and challenges.
Take time to verify credentials, qualifications, and associations when evaluating accounting firms:
Licensing - Accountants who carry the certified public accountant (CPA) designation have passed required examinations and met educational requirements. Confirm any state-level licenses held.
Firm Associations - Look for membership in national groups like the American Institute of CPAs and state accounting societies.
Individual Associations - Reputable accountants often hold memberships in industry-specific accounting groups.
Disciplinary Issues - Review state board records for any disciplinary actions taken against the firm or accountants.
Education Background - Most accountants have at least a bachelor's degree in accounting or finance fields. Advanced degrees demonstrate deeper knowledge.
Proper credentials indicate accounting competence, adherence to ethical standards, and commitment to ongoing learning.
A strong reputation is a key indicator of an accounting firm's reliability, competency, and client service. Spend time researching reviews, ratings, referrals, and testimonials:
Online Reviews - Reviews on Google, Yelp, and other sites give candid client feedback. Look for consistent positive ratings.
Referrals - Ask business connections for referrals to accountants they trust. This provides a firsthand recommendation.
Better Business Bureau - Check the BBB profile for any registered complaints and how the firm responded.
Firm References - Reputable firms should readily provide references from current clients.
Case Studies - Look for examples of how the firm has served clients similar to you.
Awards - Recognition through accounting industry awards demonstrates achievement.
Firms with many glowing reviews, referrals, satisfied references, awards, and case studies have earned positive regard from clients served.
Today's digital environment allows firms to work remotely with clients situated anywhere. That said, having a local accounting firm can provide advantages:
In-person meetings allow for face-to-face relationship building.
Quick document handoff and information exchange is easier when operating in the same area.
Local professionals are more familiar with state/regional tax laws and regulations.
Firms immersed in the local business community tend to have broader connections.
Some business owners prefer having an accountant nearby for convenience.
With today's online meetings and cloud-based exchange of documents, location need not be the determining factor. But for some, proximity is still preferred.
Make sure to assess your compatibility with the accounting firm beyond just credentials and experience. You want assurance you can build a strong working relationship and effectively communicate with your accountant.
Personality style - Do the personalities seem like a good fit? Is the communication style compatible?
Dynamic - How do the firm representatives interact with you? Is it positive and constructive?
Responsiveness - Do they ask clarifying questions and listen attentively?
Understanding - Do you feel they understand your accounting needs and business goals?
Communication - Does their communication style work for you? Do they avoid accounting jargon?
Take time during an initial consultation to determine if the interpersonal dynamic feels like an ideal match. You want assurance the firm will provide attentive service and clear communication.
Accounting fees can vary greatly between firms depending on:
Location - Accountants in areas with higher costs of living often have higher rates.
Level of experience - Rates usually increase with an accountant's years of experience and expertise.
Add-on fees - Charges may apply for certain services like payroll setup.
Minimum charges - Some firms have minimum monthly billing requirements.
Get an estimate of the total hours required and hourly rates.
Ask what is included in the fees and what additional charges may apply.
Understand the billing structure - by the hour, retainer, monthly fee, etc.
Inquire about discounts for new clients, annual prepayment, or bundled services.
Consider the value delivered for the cost - cheaper does not necessarily mean better.
Weigh costs against the qualifications, expertise, and capabilities the firm brings. Quality accounting guidance provides long-term benefits that justify reasonable fees.
Conduct thorough due diligence before selecting your accounting firm:
Ask candidates to describe their experience with clients in your industry and niche.
Request their recommendations for an accounting setup and financial strategy tailored to your firm.
Look for thoughtful questions that demonstrate an interest in your business.
Discuss communication protocols - response time, preferred contact methods, accessibility.
Explore security measures taken to protect client data and privacy.
Tour their office to view work conditions and resources.
Request and check client references. Speak to current clients about their firsthand experiences.
Review sample work products - audits, tax returns, budgets, forecasts, etc.
Take time for an introductory consultation and use it to conduct a thoughtful interview. Follow your instincts - a good fit becomes apparent through diligent vetting.
With a clear accounting needs definition, vetting of credentials, compatibility assessment, and due diligence, you can confidently select the NSKT Global for best accounting firm in New York or accountant for your needs. Weigh factors like industry expertise, work style, responsiveness, and capabilities. Reliable accounting guidance provides invaluable support. Take time to carefully assess options and select a firm positioned to handle your specific needs. With the right accounting partners, you can focus time on your core business knowing your finances are in expert hands.
