If you’re looking for a new accounting services provider, there are a few things you need to know. In this guide, find out what they are and how to find the right fit for you! Xero for accounting is the most popular option. But they’re alternatives like Quickbooks too. Do your homework or speak to one of our accountants before deciding.
What services do you need?
If you are considering hiring an accounting services provider, you should ask them for a list of the services they offer. Some accountants are actually bookkeepers and only help to keep track of transactions. They don’t deal with multiple foreign currencies and aren’t familiar with tax laws and tax breaks.
Many service providers will be able to give you a list of the different types of services provided by other providers in their profession. This will help you decide which type of service provider is best for your needs.
Do you have a budget?
It is important to make sure you have a budget before you begin the process of hiring an accounting service provider. If you do not, it can be difficult to compare your options and make a decision on a reasonable price.
Do you need a service provider for a full package or an individual service?
For instance, if you are looking for tax preparation services only, you should only need to hire an accountant for individual tax preparation services. However, if you are looking for a full package of accounting services, including bookkeeping and payroll services, hiring an accountant for your business may be more appropriate.
How long is the contract?
It is important to think about what your needs are before signing a contract with an accounting services provider. Make sure you are clear on the length of the contract, as this can greatly impact your bottom line. Does the accounting service provider offer live chat, phone consultations, email correspondence, or Skype video sessions?
Will your staff be trained to use the system they provide?
This is a big concern for accounting firms because your staff will need to be trained to use the software and the company usually does not provide training. If you do not want to train your staff, you should hire an accounting service provider that has a free trial period or offers some type of training program.
What are your payment terms?
Payment terms are an often overlooked, but very important detail. How much time do they require for payment? What is the interest rate on late payments? Payment terms will vary by business and company, so it’s important to ask these questions before signing a contract with an accounting service provider.
Is there a penalty if I terminate early?
As an accountant, this is one of the most common questions I am asked. You will need to ask this question to see if there are any penalties for terminating the service early.
What is the provider’s responsibility with backup and recovery of data?
If the provider will be the one to back up your data, it is imperative that they protect against any potential risks. This includes ensuring that your data is safe in the event of a ransomware attack or other cyber attack. This is especially important in a cloud accounting software like Xero cloud accounting. This is because all your data is essentially kept on “the cloud”, or Xero’s servers. If there’s a hack, your data could be wiped or infected with malware. This will throw all your years of bookkeeping and keeping track of transactions away. Xero is a large company that pours millions into cybersecurity every year. Make sure that you find a cloud accounting software that does the same.
Is there a retainer?
A retainer is an upfront agreement that one company has with another company. The agreement usually has the paying company commit to a set amount of services over a specific time period. It is often used when there are big accounting-related projects to be done.For more information about accounting and how bookkeeping works, contact WLP Group today!
