5 Ways to Bring Your Accounting Service into the 21st Century

There are thousands of providers of accounting services on the market to choose from. There are large accounting firm, small companies and also so-called freelance accountants. Most of these companies provide a so-called traditional service, but, fortunately, there are now also companies on the market that follow a different vision – those that have two feet on the ground, look into the future and are able and willing to provide their customers 21st century accounting services. How to find them and what to keep in mind when choosing your service provider?

1. The service provider should manage the activities not hours

If one were to analyse quotes for accounting service, one cannot help noticing that many of them are based on working hours or based on entry-based accounting. This way of thinking has now become obsolete. If you buy a car, do you care how many hours it took to sew leather seats or make rims? Or do you see the car as a whole? Looking at the big picture is also how the accounting companies of the new era see things. There is no point in buying the working hours of an external accountant if you do not have an accurate overview of the content of the working hours.

The accounting partner of the new era will first get to know the company, map out the needs and plan necessary work. As a result of this study, a detailed personal “journey plan” is drawn up, which describes the specific activities, their cost and immediately assigns people responsible for them.

Efficiency is a very important keyword in accounting processes, because efficiency should form the basis for the entire service and cooperation. For example, if there are processes that you want to keep internal (e.g. entering purchase or sales invoices, etc.) for cost reasons, you need a partner who shares your goals and can build the service so that both internal and external accounting activities are united. You need a partner who does not attempt to monopolize the application of the accounting program, but trains your staff and assists with monthly reviews.

2. Multi-level project management keeps the company on track

One of the advantages of outsourcing accounting is that instead of a single payroll accountant the company is advised by a team of professionals with different skills. Traditional accounting firms normally have teams that consist of only traditional accountants with limited experience and, consequently, knowledge. However, excellent accounting firms have already thought about it, and, if necessary, can offer a team consisting of true professionals who are always available and keep an eye on the big picture as well as keep the company on track.

For a company executive this means that in case of a more complex financial question that only a professional auditor or a capable financial manager can resolve, you don’t have to google for answers or hire expensive consultants, but that you can turn to your a partner who could and should have this capability.

3. Choose a partner you can trust!

Today, the key to success is transparency and compliance with the law. Hopefully, the financial schemes in which accounting firms played an active part have remained in the 1990s. Companies today need a partner with whom one can calmly look forward to a tax audit!

For example, if your company plans to involve investors, proper accounting will reduce the preparation period and paperwork. You can start the due diligence immediately and don’t have to waste time and money. As a result, the company can raise the necessary investments sooner

In addition to diligence, a 21st century accounting firm will support you in strategic planning. More importantly, it helps to create the preconditions for investors to make a favourable decision for you. Many nuances that influence such decisions must be taken into account when managing accounting. Make sure that the service provider that you choose has experience with this.

Klaar.me is the perfect solution for our company. In our long-term cooperation, the service has integrated into and become embedded in our daily business. Accurate reporting and impeccable accounting records allow us to focus on so-called more important things.

Eigo Siimu
Woolish OÜ, Member of the Management Board

4. Good cooperation starts with good communication

It is said that the most important personal characteristics of an accountant are accuracy and diligence. However, all this could come to nothing if the accountant’s biggest friends are numbers and not people. It may be a stereotype, but it highlights an important quality.

The accounting firms of the new era place high value on communication. It is open and honest communication that ensures that processes are in place and responsibilities are shared, and that work is performed as a team, for common goals.

A good accounting partner is like the company’s finance department instead of being a distant anonymous service provider who simply fulfils routine tasks. In this way, the synergies created by cooperation are beneficial not only on the business level, but also on the personal level. So before choosing your company’s new financial partner, meet with service providers and find a team that offers the best match.

5. Be open to change

If you agreed to all of the above and see yourself making similar changes in your company, you have already taken the first step towards 21st century accounting. Your open mind and readiness are the keys for participating in the efficient and transparent work process and managing the process conveniently and simply. In the long run, all this will save you time and money. Fortunately, there are already a number of such accounting firms in Estonia that are open-minded and forward-looking and ready to support you whenever you need it.