Accounting companies are SME’s most important partner. A study conducted by the Financial Administration Union revealed that an accounting company is a more valuable partner to an entrepreneur than the bank, auditor or other entity.
It does not come as a surprise that changing from one accounting company to another is viewed as difficult. It is important to evaluate whether the current accounting company has been able to establish their role in supporting the business while generating more value than they are worth.
Every accounting provider uses some sort of digital system to help with their services. Changing providers requires information to be moved from one software to another. If the prior software meets modern standards and the information is up-to-date, everything can be moved to another system easily.
It is a common misconception that the best time for changing accounting companies is at a start of a new accounting period. This deduction seems practical, but in theory, it is usually the worst time to organize related elements.
We have written a guide explaining the phases, and reasoning behind changing accounting companies at a time of tranquility.
Download the guide here:
Please provide your name and email address for your free download.
Why is price comparison of accounting companies so difficult?
Finland has approximately 4.800 accounting offices each with a different history, expertise, and age. Companies are also at different levels in work automation and digitization.
The starting point for everyone is the same: labor costs account for a majority of the expenditure. Proficiency comes at a cost, and higher level of expertise results in higher costs. Development and improvement of information systems further increase overall costs.
Highly automated information systems reduce the overall costs, and produce reliable data that can be accessed in real-time.
Performance optimization relies on process thinking. Actions are composed into processes which are familiarized by accountants and the client’s personnel. With time, the processes become second nature, and high efficiency with low costs is achieved.
When recurring actions are molded into processes considerable savings can be achieved. This requires discipline in improving, following, and standardizing the processes. A client that neglects to understand or operate according to the processes, increases the manual work done by accountants, which is expensive.
In practice, all the processes cannot be made available from the start, and deviations need to be corrected manually which can multiply the costs. Once all the system processes are in place, costs are minimized.
The problems related to automation are predicted by accounting companies to enable fast reactions to possible mishaps relating to the client’s methods. This makes the comparisons with accounting company prices challenging, and can lead to higher costs than was initially agreed to.
The services provided by accounting companies are becoming more challenging as digitization advances. Manual accounting has reached the end of its era, and no client wants to pay for the manual labor the amount it costs for its provider.
Automation is a requirement for effective, real-time event treatment. Automation begins with collecting basic operations into processes that can be standardized. A well though out process chain can be automated with computers for cost savings, and improved efficiency.
Anomalies in the standardized processes account for problems and additional manual work. Process compatible work methods ensure that systems are up-to-date, productive, and cost-effective.
It is important that the processes under scrutiny are developed in cooperation with the client to secure the best performance with great value and phenomenal accuracy.