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Facts and answers

How to assess the quality of accounting services?

“Only the time shows the traces of good accountants.”

Therefore, it is very difficult to assess the quality of the accounting services at the present moment. On one hand, managers do not have the criteria for assessing the accounting, on the other hand, they do not have sufficient competence to notice the mistakes made by an accountant. As a result, when accounting is trusted to an accountant with insufficient competence, mistakes are made that in the long run can be difficult to rectify and that may cause losses for the company.

The signs of bad services...

• Debts. Accounting data does not check with the data of the client /supplier (for instance, the amount of trade payables recorded by the accountant does not check with the actual amount payable, or accounting records show a debt that your company does not really have).
• Taxes. The outstanding account balances do not check with your accounting data (for instance, the final amount of taxes payable recorded in the accounting documents does not check with the data available to the Tax Inspectorate; this is the sign that taxes have not been declared correctly).
• You are not being informed in advance about the financial situation of the company:
  • the profit and the amount of taxes payable are not being reported in good time and in specific terms (for instance, the company is making profit but the manager is not informed about the results and the amounts to be paid in taxes, so he cannot plan his cash flows);
  • malicious debts are seldom reported or not reported in due time;
  • actual cash balance is not being checked in due time (the actual cash balance must check with the accounting data; if it doesn’t, this means a violation of cash operations, which is subject to penalties);
  • the consequences of the actions of the management are not explained to you in detail and in clear terms (for instance, if you rewarded your employee with a holiday trip instead of paying a bonus, you must investigate the tax consequences of such decision in detail);
  • stock balances in terms of quantity and money do not check with the actual stock (for instance, if there are goods for LTL 10,000 in stock, then it should be LTL 10,000 according to the accounting data as well).
  • The actual balance of fuel does not check with the accounting records (if the company has two cars, normally there may not be more than 140 litres of fuel left at the end of the month as this would be more than the fuel tanks may contain, so the accounting data should not indicate higher amounts of fuel as well).
  • No use is made of legal tax optimisation possibilities or tax relieves (e. g. sole entrepreneurships).