Choosing the right tax accounting firm isn't as easy as other services. There are a lot more variables to consider during selection, and this makes it difficult. However, at RedFish, we have accounting specialists who can deal with any sort of difficulty with your taxes. If you’re in either Houston or Cypress, do get in touch with us.
Let's take a look at the mistakes that most people make when choosing a tax accounting firm for their purpose.
1. Hiring Inexperienced Accounting Firms
The number one mistake most people make with their selection of accounting firms is not looking at experience. This most likely happens when they are trying to get a cheaper firm for their needs.
Accounting is a difficult niche, and you need people who have been at it for many years. Experience counts for a lot of things when it comes to accounting. They are aware of how to handle different situations which a tax book cannot teach you.
2. Disregard Certification and Licenses
The tax accounting firm which you choose needs to have their credentials in order. Certifications and licenses are mandatory for accounting firms. If you want to engage them, you need to ensure that they have their credentials updated.
One reason why it is important is that tax accounting needs a good understanding of changing laws. And the latest certifications and updated licenses ensure that the firm has the requisite understanding of it all.
3. Improper Assessment of Their Requirements
Another important thing is to look for exactly what you need. If you are a small business, you don't need a high-profile tax accounting firm that costs hundreds of thousands of dollars.
And the same goes if you're a bigger company looking at smaller accounting firms. You need to approach firms that have a majority of customers the same size as your organization. This is an important yardstick when it comes to hiring tax firms.
4. Lack Of a Proper Budgeting Strategy
Some things that a lot of companies looking for their first accounting firm get wrong is their budget. If your budget is too low, you may not be able to get the right firm for you. Too much, and you're leaving money on the table.
Arriving on a budget can be difficult but get some research done, and you can arrive at figures. It is important to choose a firm that is well within your budget. It gives your company the best chance of success with your accounting process.
5. Not Asking the Right Questions
As someone looking to hire an accounting firm, it is imperative you ask the right questions. You need to have a list of questions that reflect your need and how they can fulfill it.
A good point to start out with is asking what they would be able to do for you. A professional accounting firm will not claim they have all the answers. These require time and research. But a competent accountant will definitely list a few solutions for accounting issues in your company.
6. Ignoring The Need for References
Personal references are always important in any industry but more so for tax accounting. Accounting is an area where it's not just the numbers that matter. It's the people who handle them.
Get a few references of their past customers who have been involved with them. It will help shed some light on their ability to handle different situations. You're not just looking for people who know numbers, but people who are easy to work with for your company.
7. Choosing A Law Firm That Is Either Too Big or Small
People tend to make the mistake of choosing a firm that is not right for their needs. A big firm might sound like an attractive proposition. But you need to factor in the cost and the fact if you really need them. They might offer you several services for the cost, but you might not need them in the first place.
Opting for a smaller law firm can also backfire sometimes. They might not have the experience that you are looking for. This can lead to erroneous accounting, which is a far greater problem.
8. Don't Inquire About Benefits
When you are interviewing a law firm, make sure that you ask them about benefits. Not just the benefits of working with them, but what they can offer you. Not many accounting firms divulge all the benefits they can offer you. This is because to get those benefits, and they need to put in the effort.
Opt for a financial accountant who can discuss your side of the benefits. If they can make a good case for themselves, then look to hire them. Remember that there are always tangible benefits for you, and they should work towards that.
9. Fail To Check Online Reviews
Earlier, it was difficult to find information about an accountant or accounting firm. But today, there are numerous websites where you can find reviews of the services you're looking for. Even Google search displays reviews for a specific business.
You must pay attention to this as it can highlight how firms deal with bad reviews. Furthermore, if there are no bad reviews on them, you can be sure that they're manipulating reviews. Read through a few reviews before you make up your mind. Do look us up and get in touch for all your accounting needs.
Disclosure: SCF Securities, Redfish Capital Management, and SCF Investment Advisors do not offer legal or tax advice. Accounting services are provided by Henry D. Nguyen, CPA. This material is not intended to replace the advice of a qualified tax advisor or attorney. Please consult legal or tax professionals for specific information regarding your individual situation.