by Jeff Thill

Manufacturers spend a great deal of time and resources to ensure strong and successful vendor relationships. As such, companies have come to expect certain levels of service and quality from their suppliers.

But when it comes to accounting, many companies forgo these expectations and relinquish control to the firms they hire. They neglect to employ the same partnership practices that they diligently pursue with their other vendors. Still, other companies won’t consider hiring an accounting firm until problems arise. When they do, they turn every decision over to the “experts.”

The result in both scenarios is that most manufacturers forget that they are in control and accept lower levels of service from accounting firms than they deserve.

In the race for success, manufacturers must stay confidently in the driver’s seat while relying on a solid accounting pit crew. The right crew can support maintenance issues and fine-tune processes, letting companies focus on their core priorities.

But ensuring high performance between driver and crew begins long before the green flag is waved. Here are four ways to maximize your accounting service satisfaction.

Engage in ongoing, two-way communication

Many organizations can feel intimidated by accounting firms, and thus surrender control of the service conversation to their providers.

Instead, a manufacturer must open and maintain a two-way dialogue with its accounting representatives. An honest exchange will help to avoid surprises on both sides of the service fence. It also opens the door for the firm to provide meaningful advice based on the manufacturer’s goals.

Because business is dynamic, such communication must likewise persist throughout the year, not just at the end of the year. Responsibility for regular communication falls to the manufacturer. It can be as simple as scheduling meetings or phone conferences at recurring intervals.

Establish clear expectations

Manufacturers have a variety of accounting needs and varying comfort levels in how they work with vendors. Some want considerable business involvement from their accounting firms, while others prefer more targeted assistance. Sharing these expectations is crucial.

Organizations can start by identifying or revisiting their most critical issues, whether it’s in-depth tax planning or getting a handle on changing and complex tax laws. With each issue, companies can then determine the level of accounting experience they need and the degree of assistance they expect. 

Equally important are the firm’s expectations. Manufacturers should seek an understanding of the fulfillment and preparation that’s expected of them.

Obtain proactive advice

 Well-rounded, knowledgeable firms should offer advice on all aspects of business matters, as well as personal ones, including IT systems, operations, process efficiencies, tax preparation, personal finances, and retirement planning.

Raise year-end standards

If an accounting firm itself determines the schedule it will need to perform the client’s work, or dictates when it will have end-products completed, one has to question its service commitment. And yet, manufacturers are surprisingly tolerant of firms that impose their own timetables and insist on extended delivery dates.

Like any good vendor, accounting firms are there to serve their customers, and no manufacturer should abide by demands and delays. A firm should ask its manufacturing client when it would like the work performed. Likewise, start-to-finish delivery should be measured in weeks, not months. 

Additionally, manufacturers should keep in mind that the financial statements belong to them and the opinion or accountant’s report belongs to the accounting firm. Therefore, manufacturers should determine which entries are significant to the financial statements. The accounting firm should not be making the decision as to which journal entries are being made. Firms that are allowed to make entries on behalf of the client can hurt overall efficiencies.

Other standards manufacturers deserve include staff continuity, quality partner time spent at the client’s location, even having a tax person on site when warranted.

Ideas for efficiencies should also be part of year-end expectations. A firm should suggest improvements in internal controls and processes, and it should also discuss any new accounting standards and tax regulations that might impact the client.

With all four approaches in practice, manufacturers can realize the full benefits that a trusted accounting relationship offers.

Jeff Thill is a Wipfli partner who serves manufacturing, wholesale, and retail clients ranging in size from large widely owned companies to smaller family-owned businesses.  Please contact Jeff at our St. Paul office at (651) 766-2862 or e-mail him at jthill@wipfli.com.