Basic Business Insights . . .
Choosing the Right Accoun ng Firm For Your Business Christopher Bacchioni, CPA, CGMA How do you determine which accoun ng firm is
best for your business?
There are many different accoun ng firms and CPAs in the marketplace from which to choose. There are sole prac oners, small firms, medium size firms, large firms, local firms, regional firms, na onal firms, and interna onal firms. Many firms also specialize in certain industries, or have developed a par cular niche prac ce area. With so many choices, how do you choose the right accoun ng firm for your business? There is no “one size fits all” accoun ng firm, and the right choice for one business may not be the right choice for another. The following are some important factors to consider when choosing an accoun ng firm for your business: 1) How well does the firm know the industry
in which you operate?
An accoun ng firm should have a sound understanding of, and have experience in the industry in which you operate. For example, if you are in the manufacturing in-
dustry, your accoun ng firm should be able to advise you on ma ers such as research and development tax credits, and cost accoun ng. They should also understand the poten al tax savings on export sales income related to the u liza on of IC-DISC for domes c manufacturing companies, among many other specific tax benefits for manufacturing companies. Financial repor ng requirements and the tax code are becoming more and more complex, and in many cases are industry specific. If a firm does not understand the industry, and takes on work that they are not equipped to handle, it can o en lead to missed opportuni es and mistakes that ul mately impact a company’s bo om line, and possibly hinder future growth. In order to help determine the firm’s experse in the industry in which you operate, you should find out what percentage of the firm’s business is in that area. It is also important to understand how the firm stays abreast of trends and developments in that industry. November 2015 | 1 Basic Business 2) Does the firm have the necessary resources to service your
company as it grows?
5)
It is important to find a firm that not only meets your cur- rent needs, but also has the ability to con nue to service your company as it grows. For example, a sole prac oner may be able to handle a small family owned business at its beginning stages; however, can the same firm s ll appropriately service that business as it con nues to grow? As a business grows, its accoun ng needs change, and the service pla orm becomes more complex, requiring addi onal resources the exis ng firm may not be able to provide. Make sure the firm you choose is well versed and up to date on computer technology, as well as professional stand- ards for accoun ng, taxes, and any other services they 6)
offer. 3) Is the firm able to operate globally?
In addi on to the firm’s local resources, does the firm have the ability to meet any global requirements that may arise? For example, if you are interested in doing business in another part of the country, or in another part of the world, is the firm prepared to service you? Firms that operate ahead of the curve are o en a member firm of an interna onal group of accoun ng firms that will provide global resources to that firm and its client. A significant benefit of a firm 7)
with a global alliance is that you can remain with the local firm, yet s ll obtain the services of the global affiliate when ever required. 4) Does the firm have the appropriate professional creden‐
als?
Inquire about the firm’s professional affilia ons and creden8)
als of its partners and staff. How many of the firm’s pro fessional staff are CPAs? Is the firm, or its professional staff a member of the following?  American Ins tute of Cer fied Public Accountants (AICPA)  AICPA Employee Benefit Plan Audit Quality Center (EBPAQC)  New York State Society of Cer fied Public Accountants (NYSSCPA) In addi on, the firm should be peer reviewed by the AICPA. Ask to see the firm’s most recent peer review report. All of these are important factors because they signify the firm’s commitment to professional standards, technical compe-
tence, and quality control. What type of reputa on does the firm have? An accoun ng firm should have a good reputa on with lending ins tu ons, bonding companies, and the general business community. If the firm does not have a good reputa on, it could impact the company’s ability to obtain financing or sufficient bonding. You should ask for references, and follow up on them. It may also be helpful to speak with individuals who may be relying on the work of the firm, prior to making a selec on, as you will want those individuals to be comfortable with the firm you choose. Does the firm take a value‐added approach?
An accoun ng firm should be doing more than just preparing your tax return or financial statements. They should be adding value to your business. For example, the firm should be providing sound business advice that will help improve your bo om line, and make recommenda ons that will add to your company’s produc vity, such as process improvements. The firm should also be aware of current trends in your industry, and keep you abreast of what other businesses in the same industry are accomplishing. Does the firm have personnel that are able to handle di‐
verse ma ers?
A firm should have a variety of professionals who possess different areas of exper se and experience. Together they can work as a team, using their combined skills to help achieve the best results for you and your business. Is the firm responsive, and is management available?
During your ini al mee ng, you will generally meet with members of senior management such as a partner and manager. However, a er the ini al mee ng, what will their level of involvement be? The firm’s management should con nue to have direct involvement with your company in order to share their experience, exper se and insight. They should be doing everything that they said they would do in the ini al mee ng. A firm should also respond mely to client inquiries and concerns. Responses to emails and telephone calls should be prompt, and a business owner should always be able to get in touch with their accountant in a mely manner. November 2015 | 2 Basic Business 9) What is the value in the rela onship?
Although cost is always an important considera on, the most cri cal considera on is value. It is important that you understand the value of the services that you will be receiving. An inexpensive firm may end up cos ng you more than a higher priced firm. The inexpensive choice can result in mistakes, missed deadlines, poor business advice, and a damaged reputa on in the financial community. A qualified firm can provide you with value added service that will be well worth the cost. Choosing the right accoun ng firm is an important decision, and requires many considera ons. The firm you choose should be a key member of your team that has the necessary resources to meet your requirements, and plays an important role in helping you achieve success. Giambalvo, Stalzer & Company, CPAs, P.C. is located in Great River, New York and provides assurance, tax and consul ng services to clients in a wide variety of industries. www.gsco-cpas.com 631-321-8000 GS&Co. is a member of MSI Global Alliance (MSI), a worldwide associa on of independent professional firms of lawyers, accountants and tax consultants, represen ng over 100 countries, commi ed to offering a real alterna ve to the large internaonal accoun ng and legal firms for clients with domes c and cross-border business interests. November 2015 | 3