Are you an entrepreneur, board member or CEO and should choose an auditor? This article is written for you. If you choose the right one, there is a good chance that you will get in touch with a person:
- which may give you valuable insights about your business,
- gives you security in difficult decisions,
- and provide valuable support to key people in your company.
In other words, an auditor reviews the annual report that the company publishes annually. She attaches her auditor’s report to the annual report. An accounting consultant prepares the current accounts, financial statements & annual report. Many auditors at the firm have the help of accounting consultants or junior auditors for the preparation of financial statements & annual reports. These agencies are called combo agencies. If the audit is required by law, an authorized public accountant is required.
Six tips for you who should choose an accountant in Toowoomba:
1. Gut feeling – perhaps most important when choosing an accountant
Does it feel good? You often know this already after a first meeting or phone call. If it felt good, it is likely that it felt good for the auditor as well. Maybe it’s because she’s genuinely interested in your business. If the gut feeling is good – then there are the conditions for it to go well. You must not ignore the gut feeling when choosing an accountant.
2. Auditor for CEO & accountant
In many small and medium-sized companies, the auditor acts as a sounding board for those who handle the finance function at the company. Choosing the right accountant is extra important for these people as the right accountant helps them in their everyday life. It is much easier to ask the auditor who has known the company for many years instead of asking a general question service and getting a general answer. In this way, the auditor is also kept updated on a regular basis, which is great, win win simply.
In the worst case, these key people do not receive support from anyone at all in these matters, which can lead to an insecure work situation and unnecessary extra work. Think about what needs you have for your particular company and include it in the assessment.
3. The right accountant for the owners
When choosing an auditor for a small company, it is important that you choose an accountant who has knowledge of working with small companies. Not everyone has.
4. Special knowledge
In some operations, it is important that the auditor has special knowledge. This is especially important for development companies . Does the auditor have experience of deferred tax assets, the Board’s impairment test of intangible assets, going concern, set – off issues, options and so on? Many auditors do not work with this type of company, which is why it is extra important for you who run development companies to find the right one.
Other typical examples of special knowledge are if your company is a financial company because then under certain conditions the auditor is required to have a special license, if your company has an unusual stock that requires special knowledge when valuing, it should be followed up or if the company has extensive cash management – then it is effective if the auditor is aware of everything that has to do with medical records, system documentation and treatment history. But there may also be qualifications regarding international accounting regulations or languages that you should follow up.
Now it should be remembered that normally an auditor is often an auditor in most companies operating in different industries and if your company does not stand out too much, there are many auditors who have the right qualifications to be an auditor in your company.
5. Time
Check if the auditor has time for new assignments. The number of assignments does not always show how much time she has for you and your company, but your questions should be about whether she has time for the part of the year that you want the work done. Timing quite simply. This is because very many companies in Toowoomba have calendar years as financial years, which is why spring is a cramped sector.
6. Cost
The largest auditing firms often have higher overhead costs than smaller firms, which can affect the price upwards. There may also be more price pressure in smaller towns, if there are several players. The one-person agency and smaller agencies often have fewer services to offer than the larger agencies have, which can be a limitation which means that you need to use several suppliers at e.g. tax issues, co-ownership issues, international issues etc.
The golden mean, of course, is to apply to a medium-sized agency that offers the services that your particular type of company needs.
Summary
Now that you have read my six tips, I hope you are more ready to choose an accountant than before. If you feel that you do not get enough support from your current auditor, or maybe it’s time to elect an auditor for the first time, I hope that my article will give you support in your decision. I also hope that the auditor you choose will give you valuable insights, security and support.
And… not so unpredictable perhaps, we have several authorized public accountants at Revideco who have the opportunity to receive more audit assignments. We are a medium-sized combi-agency with both small and large customers in most industries. We are accountants in Toowoomba & specialists in small companies, growth and development companies and also have extensive experience of associations and international groups. Feel free to book a meeting with us and evaluate whether we could suit you.