There’s an old adage, nobody gets fired for hiring IBM. Across industries, including accounting, there are big brands that are highly recognizable and carry weight in the industry. We get it. But are you confident your accountant is fully in your court?
We want to help you, as a business owner, make informed decisions with your eyes wide open when it comes to choosing your accounting firm. The decision matters.
Audits and Reviews
Assurance services is an industry term that describes work that we, LCW CPAs, and accounting firms across the country provide to our clients. Such services include financial statement audits, reviews, and compilations as well as cost certifications and employee benefit plan audits.
Assurance work is the work we do to issue an opinion regarding your business and its financials. The work is completed in response to a third party asking for an independent opinion and is often required as a term of bank loan covenants, or governmental requirement (as in the case of grants or not-for-profit entities).
Such work is useful in highlighting the important relationship that should exist between a client and their accountant. The third party requesting the assurance is placing a level of trust in the accounting firm’s name and reputation in the deliverables provided. If the assurance work is required by a bank, the size of the loan may determine the level of assurance that the bank (and its regulators) requires. For larger loans, as an example, they will want a financial audit or at minimum a financial review. For smaller loans, a review or compilation might be sufficient.
We complete assurance engagements for our clients regularly and recently experienced a situation that concerned us regarding how another accounting firm approached the work. While the work was technically completed properly, the other firm seemed to be driving up fees with out-of-scope, ticky-tack matters and adding little or no value to empower the business owner to make informed decisions about their business.
Considerations in Selecting the Right Fit for Your Business
There has been tremendous consolidation in the accounting industry with small local and regional firms being acquired. The big national accounting firms get bigger and like any big company, they have top-notch, experienced, and talented professionals who may or may not be accessible to you and your business.
As you evaluate accounting firms, it is important to consider what you want from your accountant.
- Will your business get the attention it deserves?
- Does your business matter to them?
- Will you have access to senior leaders in the firm with relevant industry experience?
- Do you want insight, guidance, and advice?
- What is the firm’s view on serving you and your business? Is every conversation on the clock and billable time or is there a mindset of investing in their clients and partnering for your business’ success?
Think about what matters most to you and your colleagues in working with an accounting firm. Then meet with various leaders in firms that align with your values and goals.
There is a role for big national brands. There is a role for local brands, too. There are pros and cons of each, but at LCW CPAs, we are committed to our clients and their success. The clock is not always running, but our clients know that we care, are committed and work hard to protect their hard-earned money. No, our logo on the audit or review will not also appear in a national ad campaign, but it will be recognized in the communities we serve and in the local charities that we support. We are proud of the work that we do and the clients with whom we work to navigate audits and reviews.
You can count on us to stand behind our work and live our company values.
We welcome the opportunity to meet with you and learn more about your business, your goals for an accounting firm and how we may be the right fit to support you and your business. If we agree it is a good fit, you can be assured we are squarely in your court.