|Reduce Accounting Fees|
How To Reduce Your Accounting Fees In A Down Economy
Has your company’s financial situation changed for the worse in 2008? If so, you may be able to reduce the amount of accounting fees you are paying. Although CPA firms and banks typically have their client’s best interests at heart, they often tend to instinctively do the same thing year after year. Here are a few questions to ask yourself.
If you answered “yes” to any of these questions, you may have an opportunity to reduce your accounting fees. These opportunities come in the form of reducing the level of financial reporting needed or even getting your level of financial reporting waived. Keep in mind, this is not a simple task and there are other considerations that should be taken into account prior to going down this road. However, it is possible if the circumstances are right in your business.
So how do you make this happen? First, call your CPA and bank to see what options are available to you. I recommend meeting with them at the same time to reach a consensus and quickly make a decision. You can also suggest that your CPA firm do a very detailed agreed-upon procedures engagement instead of an audit or review.
Many companies think that by simply changing CPA firms they’ll be able to reduce their fees for the next year. This is usually not the case when you consider the significant amount of time you will spend pulling together historical documents and explaining your business to the new firm. Your current CPA will also charge you for the time spent with your new firm during the transition. Also keep in mind, if you owe fees from the prior year’s engagement, you will need to pay these fees before the current firm will allow the new firm to review their workpapers. In most situations, you end up spending more time and money when you switch firms.
As you can see, companies do have options in this down economy. Companies who change their way of thinking and know what questions to ask will have an advantage over companies who do exactly what they did the year before even though the environment is completely different.
Rich Business Solutions specializes in these types of situations and conversations. We can help you evaluate your company’s current situation and recommend a strategy for reducing professional fees and other expenses. For more information, please contact Rich Tarnopolski at Rich Business Solutions, 602-705-2688