Accounting services in Thailand are getting competitive. Several new accounting firms are emerging, and outsourced services are expanding. With so many options available, it can be challenging to find the perfect firm for your company. However, hiring the ideal firm is a crucial step you need to take to safeguard the success of your business.
Accounting makes sure that your finances and overall operations stay on the right course. It helps you keep track of all your transactions and achieve your goals while keeping in line with your allotted budget. Because of this, accounting is considered an essential component of your business. That said, you need to make it a priority to get the right accounting services for your company.
If you already have an existing account firm partner but are unsure of their competence in helping your business, here are the signs you need to look out for.
Accounting Thailand Red Flag Signs
The goal of accounting firms is to extend their expertise in financial reporting, tax filing, and government compliance. But while some excel in providing high-quality services, others do not. Below are the red flags that tell you it’s time to make the switch.
High Cost of Services
Getting the services you need shouldn’t cost you a fortune. You must be able to pay the value equal to the quality of services they offer. Hence, if you notice that your existing firm is charging you unnecessarily high fees without delivering outstanding services or updating their software and systems, it’s time to reconsider your options.
Find accounting Bangkok firms that offer convenient and competitive packages to help you get all the accounting functions you need at an affordable price.
Inaccuracy of Financial Reports
In accounting, the accuracy of data is an important factor to consider. Only when you have true and authentic numbers can you make the right decision for your company. But when your accounting firms create financial statements like income statements, balance sheets, cash flows, and capital statements that are faulty, it can impact your financial stability and credibility. That said, you need to make sure that your accounting firm pays attention to detail, follows a consistent work process, conducts routine reconciliations, and keeps a comprehensive audit record. Only then can you minimise errors and guarantee accuracy.
Lack of Certification and Accreditation
Before accountants can provide their services to businesses, they must be Certified Public Accountants (CPA). This is a certificate given to professionals who are eligible to practice accounting functions like signing audit reports or providing expert financial opinions.
In addition, according to Section 11 of the Accounting Professions Act, an accounting firm needs to become a member of the Federation of Accounting Profession (TFAC) before it can form an accounting firm.
These are the primary requirements firms and accountants need to obtain to offer their services. But if you want to ensure that they excel in their profession, be sure to check for other certifications and accreditations, like the Certified Financial Analyst (CFA), Certified Management Accountant (CMA), and Certified Internal Auditor (CIA).
Lack of Availability
Besides these, another red flag you need to watch out for is lack of availability. If they are difficult to contact or take a long time to respond to your query, it can delay the whole accounting process. As a result, you may submit reports late, which can lead to penalties.
Whether it be due to having too many clients or lack of manpower, a firm that lacks availability is not a firm you should partner with. Instead, you need to find a firm that provides a prompt reply.
Insufficient Understanding of the Business
Accounting firms with insufficient knowledge of your business will have a more difficult time understanding your needs. For instance, if you work in retail, your accountant must be familiar with the trends to help you make the right financial decisions to move forward. Otherwise, they may impede your business growth. That said, be sure to find firms that specialise in your field.
Poor Customer Service
Finally, poor customer service is when a firm cannot provide the support and services you need. They also don’t offer options for flexibility and scalability should your business expand or change activities in the future. Because of this, your business’ growth is limited.
Steps to Find the Right Accounting Service in Thailand
If you find these problems with your current accounting firm, you need to switch immediately. Here’s a simple guide to help you search for the ideal firm.
- Identify which accounting firms are viable choices. Try to get recommendations from peers or search online.
- Evaluate their credentials and company portfolio to see if they fit your criteria.
- Implement a budget plan for service fees, software implementation, and other necessities.
- Conduct a preliminary meeting with shortlisted service providers to ask all the necessary questions left unanswered by your independent evaluation.
- Complete all contract processes, from contract selection and collection of information to negotiation, contract review, stipulation of provisions, and contract signing.
Regardless of what type of business you have, it’s crucial to know what you need from your accounting service provider in Bangkok. If they don’t meet your criteria and show red flags, it’s time to change. With this guide, you can evaluate your accounting firm better and conveniently make the switch.