We are going to walk you through how the big four accounting firms operate and the alternatives available for small or mid size private businesses. Using a boutique firm, especially one whose partners are Ex-Big Four has many benefits.
Alternatives to the big four accounting firms
The Big 4: PwC, KPMG, Deloitte and E&Y tend to be a lot more expensive than local accounting firms and while for some transaction advisory you may want to use them especially if you are a public company as there are many regulators involved with respect to the audited financial statements issued like the securities commission. However, if your business is a private enterprise and your financial statements require a audit or review just for financing or investor requirements it makes more sense to use a local accounting firm that can offer a more cost effective alternative, with on demand service, and more personal partner attention for your business.
The benefits for using a local accounting firm
1. Increased Partner face time and attention:
When working with a boutique accounting firm, your business has the access to partners and are closer to your business. They generally have more focus with their clients, and have developed a niche service area, or industry, thus your business can utilized this specialization and personal attention. If you are working with a local firm whose partners come from the big four, then you have the best of both worlds: experience you can trust, and personal attention for your business.
2. The quality of work and services delivered is the same as the big four:
When working with a boutique accounting firm, the quality of the work delivered is the same as the big four, this is generally the case for services in the private enterprise sectors, and especially true for when the partners of the local firm come from the big four accounting firms ( I.e., our partners at MP Group, come from the big four accounting firms and have worked at firms such as Deloitte, KPMG, and PwC before co-founding MP Group).
3. Local firms are more cost effective and can offer more efficiency:
Partners at the big four accounting firms generally charge anywhere from $700-1,000 an hour for their "time", and their managers range in the $400-$550 per hour range, and the junior staff charge out at $250-$350 per hour.
When you work with a boutique accounting firm, you can get service from an experienced professional at a fraction of the cost, and they are not going to charge for "time", if your working with a progressive accounting & advisory firm they will offer value pricing, which is pricing for service deliverable's to achieve your requirements/ goals.
To lean more about how MP Group can assist you with you tax, accounting, and consulting service requirements contact an advisor at 416-214-0527 or visit www.mpgroupcpa.com.