As businesses grow the complexity of financial record keeping increases, making it necessary to consider professional accounting and bookkeeping services. For many small and medium-sized businesses, contracting with an external accountant or bookkeeper can significantly enhance understanding your financial story and future, efficiency, lower costs, and meet compliance. Here’s how a company can prepare to make the most of this vital partnership.
Assess Current Financial Health: Before engaging professionals, businesses should evaluate their existing financial processes. If there are no formal policies in place, review how transactions are recorded, the effectiveness of current bookkeeping software, and the clarity of financial reporting. Establishing financial policies may also be necessary.
Define Your Goals, Objectives, and Scope: Companies need to have clear goals for what they want to achieve through their accounting partnership. Whether it's managing payroll, preparing for tax season, or general financial oversight, understanding these objectives helps in defining the scope of work and ensures that both parties are aligned from the outset.
Choose the Right Professional: Selecting the appropriate accountant or bookkeeper is crucial. Credentials such as certifications (CPA) experience in the industry, and familiarity with the business's preferred accounting software are key factors to consider. Moreover, it's important to evaluate their communication skills and responsiveness, as these traits significantly impact the ongoing relationship.
Set Up Efficient Data Flows: After selecting a service provider, it's crucial to establish effective communication and data sharing protocols. With Jasmin Group, we outline the duties of company staff, the software and tools to be used, the frequency of reports, due dates, and key performance indicators to be monitored. A minimum of a monthly check-in should be scheduled.
Understand the Financial Commitment: Engaging an accountant or bookkeeper is a financial investment. Businesses should be clear about the fee structure—whether it’s hourly rates, fixed fees, or a retainer model. Understanding all associated costs upfront can help in budgeting and avoids surprises. Do note, your staff will play a role in keeping costs low when they provide the needed information on a regular, timely basis.
Prepare for Challenges: While the benefits of professional accounting services are many, companies should also be prepared for potential challenges. Companies will need to establish very stringent rules when it comes to the internal management of income and expense recording. Regular monthly meetings with your accountant or bookkeeper are essential to address and resolve challenges as they arise.
The decision to hire an accountant or bookkeeper brings numerous benefits, including better financial compliance and enhanced decision-making capabilities. By carefully preparing for this partnership, companies can ensure a smooth transition and a productive collaboration. If you’re ready to take the next step with your accounting and bookkeeping, contact Jasmin Group for a free consultation today.
