How to Choose the Right Accounting Outsourcing Firm
The benefits of outsourcing are dependent on the person or firm you choose to handle the functions for you.
If you have read my previous article entitled I mentioned in my previous articles “Accounting for Small Businesses”, you must have seen the need and benefits of outsourcing your accounting functions. If you have not read it, I recommend that you read the article first.
However, I mentioned that it is not automatic that you will stand to enjoy all the benefits of accounting outsourcing. The benefits are dependent on the person or firm you choose to handle the functions for you. Following these steps will guide you in choosing the right person or firm.
Read Also: Benefits of Outsourcing Bookkeeping and Accounting Functions
- Be specific about the type of service you need: You need to ask yourself the following questions:
- What are the elements of the service needed? Can you do any piece on your own?
- Is your need general or specific?
- What level of experience do you require (simple vs. complex)?
- How much are you prepared to pay for these services?
- Write down other characteristics that are important to you. Depending upon the service, you might include: responsiveness, integrity, professionalism, creativity, attitude, location, etc
- Gather referrals and create your own shortlist of names. You can get referrals from colleagues and friends. There is tendency for you to get two or more referrals. From these, you will be able to select a suitable person having considered their small business experience, length of time in their field, solid knowledge of your industry, professional certifications, their reputation in the community and their fee structure.
- Agree the term of engagement before the work begins and get this agreement in writing. Many business owners make mistakes in this area. Even, if the person is your friend or relation, you need to agree the terms. Clarify hourly charges, monthly retainer amount (and what that covers), and/or possible extra charges. Discuss the allowed circumstances (if any) for canceling the agreement. Ask questions to clarify any aspect of the agreement that you do not understand.
If you follow the above steps, you will have less hitches in your relationship with your accounting outsourcing firm. When you choose the right firm, you will definitely have value for your money.
Read Also: How to Choose the Right Accounting Outsourcing Firm