Choosing an accounting firm is similar to searching for a reliable business partner. Accounting companies offer an array of services including bookkeeping, taxation, and other financial services. As a general rule, it is important to hire a firm that is trustworthy and dependable to manage your business finances.
Here are some of the tips that can help you in choosing the most suitable accounting firm for your business.
A good accounting firm provides a wide range of specializations like accounting, auditing, drafting of financial statements, financial reporting, tax planning, and secretarial services. The firm should be able to provide sound advice about your business’ financial condition and create a yearlong forecast that will help your business run on a healthy rate.
Improper tax documentation can create problems. Fees and penalties are also costly. This is why it is important to hire a company with a good understanding of taxation.
It is crucial that the accounting firm is knowledgeable with tax laws. They should ensure that your financial reporting is in compliance with the IRAS tax regulations. The accounting service provider should also know how to calculate your tax liability and ensure that statutory filings are completed within deadlines.
Check the business accreditation of your prospective accounting firm. The firm should be compliant with the government requirements to legitimately run and offer accounting services.
Accountants that are members of accounting organizations are better options. These organizations often impose strict membership requirements and this will provide a higher degree of assurance for your businesses.
In addition, accountants should have competency and knowledge of the Companies Acts and regulations in Singapore. This will ensure that your finances are managed in compliance to Singapore accounting standards.
Expertise and Experience
Proven expertise in the industry is important when hiring an accounting firm. They should have an independent team that is well trained in their fields. This will translate into better communication, reasonable fees, and realistic expectations.
The fee is one of the key considerations when choosing an accounting firm. This varies widely depending on the type of service, nature of your industry, and business requirements. Accounting service firms compute their fees per hour or at a fixed rate and also offer packaged services. Whether fixed or hourly rate, it is essential that the firm provides a clear and consistent payment plan with no hidden fees.
Ask for Recommendations
Tapping on connections and relationships is an effective way to find an accounting service firm. You can ask friends, relatives, or family members for recommendations. Referrals from other businesses may also help. People with a positive experience and are satisfied with the service are likely to give a referral.
Consider the Size of the Firm
The size of the firm matters. Having a team is better than one employee working on your business’ accounting and bookkeeping functions. A team with different experiences and expertise working together will certainly add value to a business.
Conduct an Interview
One effective way to better understand the service provider is by conducting an interview. This will help you learn more about the team and what they can offer to your business. This is also a great way to share your business needs and how you want your finances to be managed.
Invest in the Right Accounting Firm
Some may not realize that improper financial management can result in business failure. Good record keeping and financial analysis will not only monitor your finances, but help grow your business.
Hiring the right accounting firm will bring a positive impact on overall business operations. It is essential for you to clearly describe your expectations and the tasks you require from the service provider before making a decision.
Corporate Services Singapore is experienced in providing accounting services for both local and multinational companies in Singapore. Contact us today and learn how we can help businesses like yours succeed.