When is an Accounting Firm needed?

The label “Accounting Firm” applies to three different service companies: 1) CPA Firm, 2) Tax Preparation Firm, and 3) Bookkeeping Firm. Each is important in the right conditions, and in some cases legally required. For instance, publicly traded companies must seek the services of a CPA accounting firm for financial audits.

Let’s look at each type of accounting firm separately and understand when they are most critical.

CPA Firm

As noted above, publicly traded companies are required to have annual audits by a CPA accounting firm. For the largest CPA firms, audits are their bread-and-butter income. In some companies and organizations, licensed auditors might spend thousands of billable hours sampling and testing the company’s accounting system to ensure proper controls are in place and that their financial records represent the company fairly. The CPA firm turns out an audit report at the end of the process that is
then included in the company’s annual report.

There are relatively few large CPA firms. Most CPA Accounting firms are smaller one-office firms led by one to three CPA’s that provide services to smaller companies. These services might include audits of small publicly traded companies, management consulting, and business tax preparation services.

Typically, they will not do bookkeeping and tax preparation, except for their business clients. In those cases where they do offer tax preparation for individuals, they charge a premium in my experience.

Tax Preparation Firm

Although tax preparation is often thought of as a CPA skill, most Certified Public Accountants do not prepare taxes, other than their own, perhaps. Likewise, very few tax preparers are CPA’s. Instead, most tax preparers start by doing their own taxes, enjoying it, then doing taxes for friends and family. Eventually, they decided to start offering it for a fee and either join up with a tax preparation firm or hang out their own shingle.

There are several large tax preparation firms, the largest being H&R Block. These firms hire seasonal workers and will provide some training at the beginning of the year. Nevertheless, most tax prep firms are small single practitioner accounting firms that specialize in income tax preparation for individuals. Most tax professionals work during tax season. If they are successful and watch their spending, they may earn enough during those few short months (January to April) to enjoy vacationing the rest of the year. Some tax preparers will offer bookkeeping during their slow seasons.

Bookkeeping Firm

These are typically small, privately owned accounting firms that provide bookkeeping and payroll services to small businesses (less than 50 employees). Often, they operate from the accountant’s home, and they may serve up to a dozen clients. They will pick up transaction detail from the client monthly or quarterly and provide financial statements on the same schedule. Nearly every bookkeeping firm will also provide full payroll servicing.

A full-service bookkeeping firm will also provide management consulting including helping the owner interpret the financial statements and provide suggestions for improving financial wealth and profitability. If trained in business tax forms, these professionals will offer tax preparation services in addition to their writeup services.

Learn more about what you can do to have your own successful accounting firm and the opportunities available in your area HERE.

If you also listen to podcasts, consider “Building the Premier Accounting Firm”!

Why Accounting Firms Need Influencer Marketing in their Digital Strategy

Times are changing. Even the most unexpected industries are adopting intricate digital marketing strategies. Because more and more businesses and accounting firms are realizing the importance of a solid online presence in raising awareness and attracting clients.

However, the saturation of businesses and various marketing ploys makes it hard for accounting firms to penetrate the online space and establish their brand. This, in turn, makes it harder for them to acquire clients.

This is where influencer marketing comes in, helping accounting brands, like yours, amplify their digital presence and get their message across to the right audience.

Most challenges companies face today have to do with a lack of communication between the firm and their clients. So getting the correct message across is extremely important. Some clients are not aware of the services offered, failing to retain information that they might need in the future. Most of them are focused on specific problems and fail to look at the bigger picture.

Your marketing strategy must integrate constant reminders about what you do and what you have to offer. However, the competition between accounting firms can easily drown your message. With the help of influencers whose voices are considered authoritative in the industry, you will be able to properly communicate your message and increase your audience retention.

Influencers are ordinary folks who create valuable content and have amassed a strong online following. Their authenticity, relatability, and honesty set them apart from traditional endorsers. For one, online users tend to trust influencers more than celebrities, relying on them for product recommendations.

Why should you integrate influencer marketing into your firm’s digital strategy?

Increase Brand Awareness

Expanding your audience reach can be made easier with the help of influencers. They have the credibility needed to convince your target market to take notice of your brand. With their voice of authority, their followers won’t only listen to them, but they will absorb your message as well. Followers will also learn to trust the influencer, which will eventually lead them to trust your firm.

Improve Audience Engagement

Sometimes it’s important to start conversations about your brand in order to have a higher chance of convincing your audience members to become your clients. Influencers can advocate for your brand by creating content that will resonate with your desired audience.

This will help improve your engagement and build a lasting relationship with your potential clients. It will also be easier for you to provide a better customer experience because your audience won’t hesitate to go to you when they need answers to their questions and solutions to their problems.

Boost Conversion and Revenues

While most influencers tend to focus more on fashion, beauty, and lifestyle, there is no reason why influencer marketing can’t be applied to the accounting industry. Influencer marketing has tremendous power when it comes to drawing the right audience and ushering in favorable results.

In fact, when done right, influencer-marketing content can deliver an ROI 11 times higher compared to traditional forms of marketing. It is one of the most cost-effective ways to promote your brand and achieve a good return on investment.

Final Notes

The nature of an accounting business is more formal than most industries. Therefore, it needs influencers who are credible, knowledgeable and respected in the field of accounting.

Most of these influencers are thought leaders whose knowledge not only stands out but is also authoritative in the industry. Teaming up with them to produce quality content can do a lot to enhance your firm’s reputation and solidify your place in the accounting circle.

Just remember to choose the right influencers who are relevant and suitable for your accounting business. Make sure that their vision and creative content are in line with your own firm’s vision, whether it is offering quality service or providing valuable information for potential clients. Otherwise, your efforts could go to waste because there will be a disconnect between your influencers’ followers and your own target audience.

To learn more about these principles and apply this in your business become a Profit & Growth Expert (PGE).

To see a related Infographic go HERE – URL: https://www.smallbizgenius.net/by-the-numbers/influencer-marketing-statistics/