An accounting firm is beneficial for owners of small businesses since you don’t need to hire a team of in-house accountants to manage this facet of your company. Should you outsource your company’s payroll? It saves you money on recruitment and onboarding costs without compromising the credibility of your financial transactions. That’s why it’s crucial that you choose a reliable agency for this partnership.
If you’re looking for an accounting firm in Rochester, NY, here are important factors you should consider:
- Identify the Services You Need
Before you reach out to prospective accounting firms, you must determine the services that you want to outsource. Aside from keeping track of your financial accounts, you may want to get additional services from this site. These are some services that you can expect from accounting firms:
- Accounting and Auditing – This includes creating financial projections and forecasts for your business as well as auditing and reviewing financial statements.
- Tax – Tax services comprise of business income tax returns as well as tax structuring and transaction assistance. The firm you hire should not just have expert accountants but tax law specialists, too.
- Business Valuation – This service provides you with assistance during the purchase, sale, or merger of business including ownership transactions which encompass shareholder buyout or issuance of new shares.
- Employee Benefits Planning – If you’re planning to develop your small business to a large one, you should prepare for employee growth, and that includes planning for their benefits right at the start. A reliable accounting firm can help you define benefit plans especially for retirement, health, and their 401(k).
An accounting firm can do the basics like auditing, bookkeeping, filing income tax returns, payroll, estate planning, employee benefits planning, and other finance-related tasks so it’s important to know the value added services you need, as well.
- Determine the Industry They Specialize In
Accounting processes and methods vary for different industries and niches. That’s why you ought to look for one that specializes in your particular field. Retail tax accountants have tested and proven techniques for that area of business, but it doesn’t mean that it’s as useful for software or tech companies in Rochester, NY.
- Check the Fees and Packages
The cost of hiring an accounting firm depends mainly on the services that you need. Most agencies lump essential services together in packages that may or may not be customizable. Generally, you are estimated to pay between 1,000 USD to 3,000 USD per month for full services. Sit down with a representative from the company and ask for a list of the services included in the package.
Determine how the company will charge you as well. Some firms offer a set rate for every task they complete while others charge per hour. These are the advantages and disadvantages of each setup:
- Hourly Billing
As a business owner, you benefit from the firm charging per hour by hiring them for a limited time per month. However, a significant disadvantage is that some agencies would work on the tasks slowly to make you pay for more hours.
- Value-Based Pricing
A fixed monthly fee offers security for both parties since you pay for their services while the accounting firm completes your files as soon as possible. A drawback with this method is that they may have separate accounting services that are not included in the monthly cost, so it’s additional payment for you.
- Know Their Availability and Communication Preferences
Ask the accountant working on your financial statements how frequently they can meet with you to discuss the progress of your files. Some firms have strict policies on office visitations or sending their employees out to meet clients, so you’ll need to verify that their rules work with your needs.
You also need to confirm how easily you can get in touch with the accountant. Do you prefer talking over the phone or meeting in person or video chatting through your laptop? Discuss these options with potential accounting firms to establish your preferences to them and see if they can provide that to you.
- Read Reviews and Feedback
As with every product and service, you need to know whether you’ll be getting your money’s worth when you hire an accounting firm. Read up on customer reviews and feedback about their experience with a particular company. This will give you an idea of what it’ll be like working with that team.
Conclusion
Enlisting the help of a reliable accounting firm can give you time to work on other vital aspects of your business such as operations, inventory, and marketing. These experts know the ins and outs of the law regarding finances and taxes, so you are assured that you won’t pay penalties for delayed filing and transactions.
