IT companies: Signs that it's time to change accountants
An accounting firm specializing in IT companies is essential for entrepreneurs, because there is a lot of work to be done to get plans off the ground. If the accounting services your company hires are falling short of the mark, a change may be the best alternative. But how do you know if you really need to look for a new professional and change accountants?
Their role is essential in various areas, such as cash flow control, payroll management, defining new investments, among others. In times of political change and economic instability, being close to an accountant can make all the difference to a company's growth in this increasingly competitive market. Ideally, they should be involved in the company's strategic planning, even before it opens (advising on the ideal tax framework, for example). They should also be involved in maintaining financial management for SMEs once the business is up and running.
Take a look at this post what are the signs that the relationship between the company and the accountant is not going well and that, for this reason, it may sometimes be necessary to change services in order to improve management.Learn about some of the possible errors that may indicate failures on the part of your accountant:
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Use of outdated tools
Nowadays, accounting relies on many technological innovations to improve its processes and offer ever better services. We've already talked about the benefits that technology has brought to the accounting area. However, some professionals don't keep up with the latest tools and end up becoming outdated.
If your accountant is restricted by technology and still has a desk with piles and piles of paper, he certainly isn't offering you all the advantages of today's technologies. This ends up delaying and hindering accounting processes.
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Does your accountant propose technological improvements?
Imagine an analytical tool so intuitive that it allows you to create personalized reports and dashboards by anyone in your company. Connect the tool to the most varied data sources, explore large amounts of data in depth, find insights quickly create visualizations and identify opportunities from every angle. Understand what's happening with your business quickly and accurately.
Digital transformation is a reality in all market segments. You may have already realized that in order to better serve your clients, you need to adopt technology as part of your business in some way. It's no different with your accountant. When they are committed to the smooth running of your company, it's natural for them to seek out and offer technological improvements for the operation of both the accounting office and the SME.
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Do you receive strategic analysis of the income statements (DREs)?
An income statement presents a financial summary of a company's operating and non-operating results.
Drawing up the Income Statement is a common activity in the accountant's work. Drawing up the P&L gives them access to extremely rich material, with vital information about the company that can greatly help financial management for SMEs.
Entrepreneurs themselves can find it difficult to make an accurate analysis of the DRE and filter this information. That's why the ideal accountant needs to "translate" the figures and guide the entrepreneur through the possible scenarios for savings and new investments. If your accountant hasn't been able to provide you with insightful analyses of your SME's situation, it may be time to look for a new partner who is better suited to your company's needs.
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Poorly qualified professionals
It's hard to find qualified professionals. This is one of the main complaints of the Brazilian business community. You may get good service and quick answers, but the support isn't exactly of the quality you'd expect. The answers to your questions, for example, are never entirely clear. If this happens, it's a sign that you don't fully trust the professional you're working with. And this not only can, but should be a good reason to change accountants
Failure to meet deadlines
Meeting deadlines is more important than many managers think. After all, delays in certain activities can slow down the company's entire workflow. What's more, any delays can lead to the imposition of excessively onerous fines by the tax authorities.
A company's legal obligations involve a wide variety of deadlines. That's why it's essential that the accountant is able to manage all of them efficiently in order to avoid paying at short notice or after the due date.
Delays in submitting returns or paying taxes, for example, can result in interest and fines. A good accounting professional adheres to the established deadlines. Nor can they leave it too late to send out payment slips. If you're having problems like this, you might want to consider changing your accountant.
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Lost or incorrect documents
One of the most serious "symptoms" that the service being provided is not of high quality is the inability to manage your company's documentation. The loss of documents is something very serious, as the accountant has access to sensitive documents (with personal and company data, such as your turnover, for example) that should not fall into the hands of just anyone.
Receiving documents from other clients of the firm by mistake, for example, is a sign that yours may also be with other people. It's true that accounting has many complex bureaucratic processes, and there can be confusion. However, it's important to understand that this isn't just a "glitch" that can go unnoticed.
Depending on the failure, the tax authorities could consider the activity a crime against the tax order and even lead to the arrest of those responsible. Document loss, on the other hand, consists of sending documents containing confidential business information, such as the company's personal and bank details, invoicing, etc. to the wrong place, losing them or letting them become public.
If you receive sensitive documents from other clients, this is a sign that your company's data may also have been sent to other people by mistake. Although errors are more likely to occur in complex processes such as accounting, there is information that should not fall into the hands of third parties under any circumstances.
If you need to rely on experienced accounting advice, capable of providing the best strategies for your company to improve its financial performance, get to know CLM Controller's solutions now.
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