How to Choose an Outsourced Accounting Firm

When building a team and hiring employees, there are standard interview questions you ask to gain an understanding of a candidate’s experience. The goal is simply to find out what they bring to the table for the role you are filling.  Finding a long-term service provider should mirror the screening process you use when hiring.

As an extension of your brand, they should reflect your values and professionalism in client and vendor communications.  They must be discreet and have confidentiality with access to your financial information.  On the performance side, you want a team that knows your goals and can support getting there with the services and know-how at all stages of business; from pre-revenue to exit.  So how do you choose an outsourced accounting firm?

Like streamlined hiring, the screening process does not have to be a long, drawn-out series of personality tests and hypothetical, scenario-based questions.  Chances are, you can find the right fit for your accounting solution using the following questions:

Do You Have Experience With Businesses in My Industry?

Every business has different needs, which is why your accounting team should have a track record of helping other businesses in your industry. For example, if you are a natural cosmetics company using more than one co-packer and selling your product via multiple sales channels, your ideal accounting firm will have experience with inventory management and the many challenges that come with being a product-based business.

Work with a team that will help you navigate merchant chargebacks, evaluate your distributor relationships, and analyze your margins; otherwise, you run the risk of missing opportunities, and stifling cash flow–and potential growth.

If you are selling in the e-commerce marketplace, drop-shipping, and venturing out into more products, you need a team that will keep you tax-compliant and make sure you are filing and paying taxes in all appropriate nexus states. 

What Bookkeeping and Accounting Systems Do You Work With?

Regardless of the industry you’re in, entrepreneurs and small business owners need to be using cloud-based accounting software like QuickBooks Online (QBO). When implemented and monitored properly, cloud-based solutions can streamline tasks that had previously been done manually or by a third party.  They are easily accessed by remote teams, promote quality business continuity, and scale with your business.  

Take inventory management for example: When using QuickBooks and an inventory management system like Cin7 (FKA DEAR Inventory), your products are set up as inventory items (with associated cost) so that when the sale goes through it’s deducted from inventory automatically.  Not to mention, it can integrate across most major sales channels like Faire, Shopify, Amazon, and more.  

Partner with a team that implements accounting solutions that let you travel the world while you run your business— wasn’t that the point of working for yourself in the first place?‍

‍Why Do You Want to Join Our Team?

As a business owner, you’ll have wins and losses. Whether you’re closing a location (bummer) or launching a new product (yay), your outsourced accounting team needs to feel like part of your internal team. Partner with a team that’s invested in the well-being of your business. Preferably one with a team of professionals that offer unique insight into your industry, not off-shore data entry bookkeeping taskmasters. 

Your team of accountants should be asking questions about the business and where you want to take things in the future, not just how much you have for a budget.  Once established, they should be diligently paving the way for you to accomplish these goals and checking in regularly.

Do You Have References You Can Share?

If your prospective accounting firm doesn’t offer a reference, ask for one and reach out to see what it was like working with them. Read up on any case studies or publications to see how they are making an impact in your niche. If they don’t get you a reference to speak with? Look elsewhere— you don’t want to work with a team that doesn’t have clients that will sing their praises.

At The End of The Day...

There are plenty of outsourced accounting, tax, and bookkeeping service options out there. Make sure the team you work with is as committed to your success as you are.  Just like an internal hire, you want a long-term, dedicated service partner who understands your needs.  By starting with these defining questions, chances are, you will land on the best fit to help you accomplish your business goals.

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Accountfully is always happy to chat with you about your needs to see if we can help get the accounting, bookkeeping, and tax preparation needs off your plate.