When it comes to companies choosing a chartered accountancy firm, they do so infrequently and, therefore, do not have the opportunity to learn from experience before they make the investment. A bad fit with an employee might not be realized until weeks after hiring, but with a CA firm, it will only become apparent when something goes wrong, such as missing a deadline, giving out a bad notice, or giving a general piece of advice instead of one tailored to your business. Many of these risks can be brought to light during the hiring discussion if the right questions are asked before committing.
Questions to Ask Before Hiring a CA Firm
Who Will Handle My Work?
This is the most important question and one that most founders forget to ask. A lot of companies have a senior partner at the pitch meeting, but after the deal starts, it is delegated to the junior partner’s hands with little supervision. Ask straightaway who will be taking care of your account regularly, who they have direct access to when they have something important to discuss and how often you will be able to speak to someone senior instead of having to go through several layers of staff. A company that can do this without any doubt is most likely one that has considered client experience as opposed to just client acquisition.
What’s Your Experience with Businesses Like Mine?
What truly matters is that a firm has a good breadth in your case, rather than a broad overall client base. The needs of a manufacturing company with import duties and inventory valuation questions are very different from those of a SaaS start-up planning on a funding round, and both are different from the needs of an individual professional handling personal tax planning. Request certain instances of clients in your trade or your stage of business and ask what types of problems arose and how they were solved. Rumblings of general experience are not as helpful as a company with a specific experience who can be specific with your scenario.
How Do You Track Compliance Deadlines?
GST, income tax and ROC compliance have their own timelines and are subject to their own penalties for late ones, and if you don’t know, you may let something slide without realising it until you’re suddenly hit with a penalty notice. Then ask about the way that the firm is tracking deadlines in each of these areas, if they proactively mark deadlines in advance and how they let you know when a deadline is coming up. One company that can explain a specific, defined process here is much more comforting than one that states that it “knows what it’s doing.
How Do You Charge for Your Services?
Don’t have any awkward fee discussions, as it will help you avoid conflicts in the future. Inquire if fees are charged for a flat retainer, per service, or per hour and what the number quoted includes. Some companies will combine the basic filing requirements in a monthly fee, and then tack on notice charges or advisory fees, while others charge on a piece-by-piece basis. It is important to know this at the outset so that you do not get an invoice with charges that you thought were already included.
How Do You Communicate with Clients?
Financial decisions always have a time constraint, if that’s a notice with a slim window of time, or a fundraising deadline. Find out how the company prefers to be contacted—by e-mail, by phone, or with a dedicated contact. Determine the time it takes to respond to an urgent issue and a routine one. Their response to this, and to the question early in the hiring process, can be a good indication of how they will be during your tenure as an employee.
How Would You Handle My Business Scenario?
When you ask for generic information about their expertise, ask them to explain how they would treat a particular realistic scenario that is relevant to your business, such as how they would respond to a GST notice, how they would structure a share allotment or how they would get ready for the statutory audit. This, rather than a list of services on the website, is a reflection on their genuine knowledge and understanding of what they do, and isn’t a pitch that they’ve been practicing.
What Happens If I’m Not Satisfied?
It is good to ask directly how the firm deals with conflicts or discontent, such as escalation to the partner, review process, or just talking it through. Companies that can do this without sounding defensive are likely to be the ones that see clients as more of a relationship than a sale.
Why These Questions Matter
The answers to these questions tell a much more complete story about the way a firm actually operates than do their website or marketing materials. If a firm can answer clearly, specifically and without hesitation, it’s likely that they have processes in place to serve clients – it’s not just a polished pitch.
How Badami & Kamath Can Help
These discussions with potential clients are welcome at Badami & Kamath. With partners who have more than three decades of experience in the post-qualification arena, our team brings a wealth of experience to the table without referring the client to a junior member of our team. We are more than happy to take you through our compliance tracking, communication and industry experience before you make your decision.
Get in Touch
If you are considering chartered accountancy companies in Bangalore, feel free to consult with Badami & Kamath and ask us these questions face to face.