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Important Points To Keep in Mind When Planning To Choose An Accounting Firm in India?

Choosing an accounting firm to help you manage your finances well and avoid audits is probably one of the smartest decisions you can take. If you don’t have a robust financial background, you should avoid … Read More

Choosing an accounting firm to help you manage your finances well and avoid audits is probably one of the smartest decisions you can take. If you don’t have a robust financial background, you should avoid doing your accounting on your own because it leads to errors.

When entrepreneurs attempt to manage their finances and accounting on their own, they end up facing both financial and legal problems. You can get audited by the tax authority for making petty mistakes in your returns.

You may have decided to hire an accountant from the known accounting firms in India, but the challenge lies in choosing the best one. Therefore, we have prepared a list of advice to help you choose an accountant for your business.

However, before you move ahead, you must answer the following questions to decide for yourself.

  • What exactly are your expectations from the accounting firms in India?
  • Does your business need a specialist or a general accountant?
  • Is your company domestic or international?
  • Do you need an accountant to produce annual accounts or also manage your accounts?
  • Do you need to provide financial statements to another company?

If you can answer the below questions, you have more clarity based on your need and can achieve success with an accounting firm beside you.

  • Experience

While exploring options on accounting firms in India, you must understand that the number of years an accounting firm has been in business can mean success or failure. An accountant with tremendous experience working with small businesses can understand the unique challenges in your business.

Although you can get along with a young accountant, it is the kind of risk that you do not wish to take.

  • References

References play a crucial role in determining an accounting firm’s potential while choosing one for your business. The more references you have, the merrier it can get, as they inform you how well the accounting firm could help your business achieve both short-term and long-term goals.

Always ensure to look for references of businesses with similar sizes, structures, or niches to make an informed decision, and you will also have an idea if the accounting firm has the experience and skills required.

  • Fees

Even though you want to focus on processes and other factors, you can’t simply ignore the fees involved. If you are unable to afford accounting services, then there is no reason to even look for accounting firms in India.

Accounting firms in India have varied fee structures. They charge based on:

  • By the hour.
  • Based on a fixed fee.
  • Based on a value-billing system.

If you are charged by the hour, that means you have more flexibility and can pay as you go. Whereas with both fixed fee or value-billing system, there is no or less room for changes.

  • Updated accounting knowledge

While choosing an accounting firm, it is vital to consider that it is well-versed in the standard processes and the newest idea and breakthroughs.

The best accounting firm is one that posses both types of knowledge. It should be up-to-date on the current trends and developments in accounting to support you with the longevity of your business.

  • Accountant Availability

Some firms offer to meet their clients once a year for tax-filing purposes, while others tend to meet frequently. So, you must find out whether your account will be a phone call away or you have to schedule an appointment to meet.

  • Audit support

Facing an audit can sometimes be a stressful situation. So, when the tax authority comes knocking, it is reassuring to know that your accountant will be right by your side. There are accounting firms in India that offer their own offices for audit purposes and represent your interest.

  • Seek feedback

Before rushing to choose an accounting firm in India, you must assess them and decide if they are effective enough. One way to do that is by seeking feedback on your present accounting system.

A great accountant can see levels, problems, or opportunities for improvement in the accounting system. Although it requires time to find the deeper problem, even a glance should provide enough of a picture to recommend changes.

Conclusion 

Besides keeping the said points in mind before choosing an accounting firm for your business, you must always follow your intuition. Your intuition can always remain an important driving force in making an informed decision while choosing an accounting firm in India.

Author: admin