A taxing season: Have you matured past your current accounting firm?

How did you do with last year’s taxes? Did you get everything filed on time? Were there any stressful moments at the deadline? And is there a chance an error or oversight could come back as a costly audit?

With tax season in the rearview and the stress of filing deadlines relieved for another year, now is the perfect time to really consider your tax preparation needs — and the team you trust to get everything done in a timely and organized manner.

The right time to reevaluate

You may be thinking, “But tax season’s over. I have an entire year before I have to worry about the next one.” While that’s true, you’re doing your business no favors by delaying an important decision due to tax fatigue.

Plus, think about what that year may hold for you: new growth, new challenges and new opportunities that come up could result in a dramatically different filing situation in 2025.

Perhaps you’ve recently been through a corporate restructure or you’re completing a venture capital funding round. Are you sure your current accounting firm is up to the task?

Being proactive in business — especially in the fast-changing tech industry — is rarely a bad decision. As they say, “Dig your well before you’re thirsty.” If you wait until next tax season to assess your accounting situation, you may find it’s too late to make a switch to a better-suited firm — or that they’ve already raised their rates in anticipation of the new year.

While the memory is still fresh, now is the perfect time to reflect on your most recent tax season and look ahead to the next one.

Signs that you’ve outgrown your current firm

When you think back on your most recent tax season, keep these questions in mind. They may shed some light on your relationship with your current accounting firm.

• Have my reporting needs increased in complexity? Changes in corporate structure, mergers and acquisitions or just good old-fashioned expansion can complicate your reporting. The shop that fit your needs perfectly as a startup might be too small to accommodate a growing business. If the pile of tax paperwork on your desk seems to get bigger every year, then maybe your tax preparers should, too.
• Does my current accounting firm make proactive recommendations? Chances are, if you’ve been working with the same team long enough, they’ve grown comfortable with the situation — which could mean that they’re not working as hard to retain your business as they did to acquire it. If your team only weighs in after the fact, then you’re working with historians, merely looking at what you did and not seeing what you could be doing.
• Does my team understand the tech industry? Smaller accounting firms may know their way around the tax code, but they might not get the nuances of your particular industry and your unique place within it. As your business grows, industry knowledge becomes more and more important, and it’s essential to work with a team that understands the nuts and bolts of how your business operates within the wider market.
• How quickly does my accounting team adapt to changes? Your business may change as it grows, and so does the wider economic landscape. Regulations change. Tax cuts expire. New technology emerges. If your team isn’t staying up to date and can’t react quickly to a changing environment, then maybe it’s time for you to change.
• Have they made any mistakes lately? Any missed deadline or clerical error could have disastrous results for your business. If your accounting firm isn’t ensuring its accuracy and timeliness, then perhaps you’ve outgrown its ability to manage the workload you send them.

What to look for in a new accounting firm

So, you’re thinking about making a change — now what? There are a number of considerations to keep in mind when looking for the perfect accountants for your business.

You want to find a firm that’s the right size for your business. That doesn’t always mean going with the biggest name — you may find yourself on the back burner at a firm that’s too big for your needs, being pawned off on junior associates while paying senior partner prices. If you’re paying too much for accounting services, you’re not getting any value from the arrangement.

Conversely, if you’re paying too little, you may not be getting the most from the services a good accounting firm can offer. Can they help with state and local taxes? Are they able to advise you on ways to improve your tax situation, such as taking advantage of research and development credits? How responsive and communicative are they?

Remember that price is only one component of value. Ultimately, the right accounting firm for your needs is the one that can not only perform the essential tasks of preparing and filing your taxes but also actively help you grow as a business, increase corporate value and enhance your overall tax position.

The services they offer, the technology and tools they use to get the job done and their particular areas of expertise are all worth researching thoroughly before you make any decisions. Also, consider whether they’d be a good cultural fit for your organization. Can you trust them? Can you work with them? It’s an intangible consideration that’s hard to quantify with data but is nevertheless essential to building a good partnership.

Not too small, not too big — just right

You’re looking for the Goldilocks of accounting firms — not so big that you’re overpaying and failing to capitalize on the full value of the partnership, but not so small that they can’t keep up with your growing needs. It’s a difficult needle to thread, but when you find the sweet spot, you can be comfortable knowing that your finances are in good hands and that next tax season (which is coming sooner than you think) will be your best one yet.

How Wipfli can help

If you’ve outgrown your current accounting firm, Wipfli may be your perfect match. Our experienced tax and accounting professionals are ready to advise your business on how to take the next step and reach your potential. Combining big-firm talent with the personal touch of a smaller firm, we bring proactive insight, industry experience and specialized knowledge to work for your business.

We’re more than just your tax preparers — we’re partners you can trust to keep your business on a positive trajectory. Contact us today and make the switch to a firm that’s just the right size for your growing needs.