The transportation and logistics industry is defined by constant movement – goods must reach their destinations on time, and seamless operations are critical. To meet this goal, specialized financial expertise is needed to navigate industry-specific challenges, maintain compliance and optimize profitability. When it’s time to select a new accounting firm, choosing the right partner is essential. Here are several factors transportation and logistics companies should consider to ensure their new accounting firm aligns with their needs and truly is their trusted business advisor.
Industry-Specific Experience
Industry-specific knowledge and experience is non-negotiable. Companies can’t afford for their CPA firm to be learning on the job. Complex accounting and tax issues like ASC 606 revenue recognition, insurance captive/self-funded specifics, including accruals and contingencies, state filings and apportionment, and fuel credits, among many others, necessitate an accounting team with proven experience in your industry. Companies within the industry must stay compliant with a whole host of federal, state, and local regulations.
A firm familiar with the intricacies of transportation operations can help you navigate cost recovery, improve cash flow management, reduce tax burdens and mitigate risks associated with noncompliance, which can lead to costly penalties or legal issues.
Reputation and Trustworthiness; What Do Others Say
What’s the reputation of the accounting firm? Can they be trusted as your business advisor? Companies often ask for three to five client references, which is typical. Speaking with past and current clients in the industry provides firsthand insight into the firm’s reputation and trustworthiness – including its responsiveness, industry expertise and service quality – helping companies better understand what to expect in their partnership. Time and again when we ask our longstanding best clients what keeps them a Schneider Downs client, they resoundingly say “trust” in our partnering with them as a business advisor.
Understanding the Breadth and Depth of Services the Firm Provides
Ideally, you’ll want a lasting relationship with your new firm, so it’s important to understand the range of services they offer, since your business needs will likely evolve over time. In addition to tax compliance and returns, as well as the audit or review requirement for the bank, there will be state and local tax matters that arise or new terminal purchases that are best analyzed with a cost segregation study performed. Or perhaps you need some accounting advisory assistance with regard to your ever-expanding lease portfolio. A firm that’s invested in its advisory services is akin to an insurance policy for the company. For example, if you’re a client of Schneider Downs (in any particular service), you then have access to all of the firm’s experts across our range of services.
Look for a firm that can support long-term strategic planning, including financial modeling, merger and acquisition assistance and succession planning. A proactive accounting partner will help you anticipate future trends, prepare for expansion and achieve sustained growth.
Evaluate the Firm’s Pricing and Value They Offer
Once you’ve assessed a firm’s capabilities and they meet all your criteria, don’t automatically choose the lower-priced option if another firm is slightly more expensive. Quality should take precedence over cost! A higher fee may be worth it if the firm provides additional expertise and specialized services, offering long-term benefits through knowledgeable advisors who fully support your business. For example, consider whether a firm that can help streamline your financial processes also offers efficient and effective service delivery, which in turn frees up your CFO and others to focus on growing the business. Or consider how a firm’s expertise in tax planning (not just return preparation) can reduce your tax liability, which would more than justify the additional expense.
By considering these key factors, you can select an accounting firm that not only meets your current needs but also supports your company’s growth and resilience in the competitive transportation and logistics landscape.
About Schneider Downs Transportation & Logistics Services
The Schneider Downs Transportation & Logistics industry group includes assurance, tax, technology and management consulting professionals who combine their individual expertise to serve transportation and logistics companies throughout the United States. We possess the capabilities and industry expertise to provide our clients with state-of-the-art technologies and timely communication of the most current and pervasive legislative and regulatory changes impacting the industry.
To learn more, visit our Transportation & Logistics Industry Group page or email Tim Martin.
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