As your business grows and evolves, the demands on your accounting firm also increase. You must have a reliable accounting partner who can take charge of your company’s finances and its adherence to the legal requirements. However, there may be a point whereby your current firm could be inadequate and cannot meet all your accounting needs. Familiarizing yourself with clear signs that point to the need for a new accounting firm can help you arrest any accounting situation before it gets out of hand.
Below are markers that indicate your business may be due for a change of accounting firm.
1. Lack of Proactive Advice
One of the most valuable services accountants in Gloucester can provide is proactive advice. An accounting firm that does not offer your management team proactive advice and recommendations has no business partnering with you anymore. You might have noticed that your firm’s interaction with you is limited to when you contact them or only during the tax season. That is a clear indication that it is time for a switch. A good accounting firm should be looking for your best interest by advising on tax, financial planning, and business opportunities throughout the year.
2. Limited Service Offerings
As you grow, your requirements may differ, and it can be that the current firm you employ does not offer specific services, such as forensic accountants, CFO advisory, or international tax advisory services. It is, therefore, time to find other accountants who can grow with your business and offer the much-needed legal services.
3. High Staff Turnover
For example, you can find your account being handled by different staff most of the time, and they do not understand your business as expected. High turnover at an accounting firm may point to other problems, such as internal mismanagement or dissatisfied employees. Accounting is best done consistently so that the management of your financials is done by a person acquainted with your accounts.
4. Outdated Technology
The accounting industry has experienced changes in technology. These include Cloud-based accounting, data analytics, and Artificial Intelligence tools. It might be that your firm is still using old tools or is still using old manual ways of doing things. These might be a hindrance to your business growth. Many technologies are currently available that can ensure accounting is more precise and quick, and deliver more valuable solutions. You must partner with a firm that employs accountants who can use advanced technologies in their operations.
5. Lack of Industry Expertise
Accounting has its regulatory requirements that accountants must adhere to. Your accounting company must have the expertise and experience to deal with these unique challenges and do things as per the regulations of the industry. Otherwise, it will not advise you accordingly. Therefore, you must find a new firm that employs accountants with the expertise to address all the industry challenges.
Of course, irrespective of what industry your firm belongs to, be it manufacturing, health care, real estate, etc., it will be helpful to work with a professional firm that will understand your field of activity.
6. Overpriced for the Value Provided
The cost of accounting services is the primary consideration for every business that outsources these services. Even though you can decide to invest heavily in these services, you must feel you are getting value for your money. Research the market and find out how others charge for services of a similar level or even higher.
Conclusion
If you see any traces of the signs above, it may be high time to start looking for something new. Picking the right company is a way to contribute to the improvement of your company’s financial results and stability.