The success of your organization’s relationship with its accounting firm depends on various factors that can change as the organization goes through its development stages. As your needs change, it may become necessary to examine your options and potentially change firms.
Some signs you’ve outgrown your firm include poor communication, limited services, and compliance issues.
Poor Communication and Responsiveness
A common problem that causes clients to explore changing their accounting firm is poor communication. Business needs and market conditions can change quickly, and you need to be able to reach your accountant as questions come up. You should expect a response to your questions within 24 to 48 hours and routinely waiting longer may be a sign that the firm isn’t able to meet the needs of your growing organization.
Beyond emerging questions or issues, it’s a good idea to have conversations with your accountant quarterly about your company, market conditions, changes in accounting standards, or other issues that can affect the organization’s audit or compliance needs.
As with any important business relationship, regular conversations can prevent unpleasant surprises.
Inadequate Service Offerings or Capabilities
As an emerging company expands, it can easily outgrow its accounting firm’s service capabilities. Bringing on international customers, establishing multiple entities, upgrading financial reporting and management software, attracting late-stage venture investors, or considering a strategic transaction are common reasons a company may need an accounting firm with more sophisticated capabilities.
How an Experienced Accounting Firm Can Help Your Business
- Ensuring SOX compliance or developing a public offering requires an accounting firm that’s helped companies of similar size, or in a similar industry, go public.
- When moving your finance team away from spreadsheets and manual reporting processes to an integrated financial management suite, insights from an experienced accounting firm can be invaluable.
Compliance and ESG Reporting Issues in a Highly Regulated Industry
If your company is in a highly regulated industry, you’ll have complex and dynamic compliance requirements that often require support from your accounting firm. You need a firm that understands your industry’s current regulatory expectations, monitors emerging compliance changes, and can help you understand how new regulations will affect your company and its reporting needs.
Beyond industry-specific needs, a growing number of companies are being asked to provide environmental, social, and corporate governance (ESG) disclosures to investors and other stakeholders. With a wide range of frameworks to choose from, and proposals for mandatory ESG reporting, companies can struggle to provide the expected information if their accounting firm lacks ESG experience.
Navigating the Challenges of a Growing Business
Are you wondering if you’ve outgrown your accounting firm and looking for more support? Contact us to learn more about meeting your financial reporting obligations, improving risk management, and ensuring compliance. We can help you navigate these challenges and complexities so you can focus on growing your business.