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Technology has led to the development of new accounting tools and approaches that have revolutionized how businesses operate. As a result, the outsourced accounting landscape in 2023 looks promising.

Many businesses have transitioned to cloud-based accounting systems and integrated finance software to manage their books. With many new companies opening and remote work rising, there’s been a tremendous increase in demand for outsourced accounting services.

But with the influx of new accounting service providers in the market, it has become difficult for businesses to choose the right one to fit their needs. Here are five essential tips on choosing the right provider for your business.

#1: Decide What You Need from an Outsourced Accounting Provider

Before you start your search for the right provider, you must first identify what you're looking for in a provider. What type of accounting services do you need? What level of expertise do you require? Do you need a full-service provider or just specific services?

Answering these questions will help you narrow down your search and make it easier to find a provider that meets your specific requirements.

#2: Assess Your Current Accounting Process and Needs

You also need to look closely at your current accounting processes and needs. This will help you understand what areas need improvement and what services you need from a provider.

You should also assess your company's growth plans and decide if you need a provider that can scale with your business. This is important because your accounting needs will change as your business grows.

#3: Research Different Outsourced Accounting Providers 

Once you know what you want and need from a provider, it's time to start your research. There are several ways to do this. You can start by reading online reviews and comparing different providers.

Even more important, ask for recommendations from close business relationships. There’s nothing more valuable than a reference from someone you trust. You can also consult with your current accountant, who may or may not be able to provide these specialized services. Once you have a list of potential providers, you can contact them to get more information.

#4: Interview Potential Outsourced Accounting Providers 

After your research, it's time to start interviewing potential providers. This is crucial because it will help you understand the provider's services, experience, expertise, and approach.

During the interview, you should keep these goals in mind:

• Find out what tools and processes they use
• Check online reviews and testimonials
• Get a sense of their customer service
• Learn about other services they offer

#5: Make a Decision and Implement the New Provider

After you've interviewed different providers and gathered all the information you can, you're ready to decide. Choose the provider that you feel is the best fit for your business and budget.

Once you've decided, it's time to implement the new provider. Make sure to create a plan for how you'll transition and communicate with your team to minimize disruptions to your business and ensure a smooth transition.

The Bottom Line

Choosing the right outsourced accounting provider is a vital decision for any business. By assessing your needs, researching different providers, and interviewing potential providers, you can find the right partner to fit your specific needs and requirements.

GJM outsourced accounting services offer a wide range of specialty services for businesses interested in handing over the accounting function to a provider and advisor they can trust.

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Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business & transaction advisory, healthcare management & advisory, outsourced accounting, and risk advisory. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution, nonprofit, private equity and utilities.

President Joe Biden signed the CHIPS Act into law in August of this year to catalyze investments in the semiconductor manufacturing industry. In the hopes of boosting local competitiveness, innovation, and national security, the government approved over $52 billion in federal subsidies.

This passage marks one of the biggest semiconductor manufacturing investments in U.S. history. The European Union, China, and Canada have also endorsed similar programs, proving that some of the tiniest components in the modern world can have a massive impact worldwide.

This article will discuss how the CHIPS Act can help Ohio manufacturers. Read on to determine if it can impact your business.

Benefits of the CHIPS Act

The Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) Act offers various benefits for companies in the industry, including the ones listed below.

Increase in Generous Tax Incentives

Eligible firms can enjoy advanced investment credit, to be codified in the Internal Revenue Code Section 48D. This benefit amounts to 25% of the related investment for manufacturing facilities.

For properties to enjoy such perks, they should:

• Fall under the semiconductor category
• Qualify for depreciation or amortization
• Be an integral part of the advanced manufacturing facility

Taxpayers can claim the benefit as direct pay or payment against tax. For this reason, they can receive a tax refund even if they don’t have enough liability. Without this alternative, monetizing credits could be challenging.

Reduction in Supply Chain Issues

Experts believe the CHIPS Act is a powerful tool in mitigating risks and can help organizations achieve a sustainable and secure supply chain. It can support the building or expansion of semiconductor fabrication facilities.

Lowered National Security Concerns

The CHIPS Act can transform the research, development, and production components of the American semiconductor industry. This program will strengthen the backbone of other companies, including defense systems.

Remember, the semiconductor industry emerged from the U.S., but East Asian companies have trumped local suppliers. Today, manufacturers rely heavily on imports.

Types of CHIPS Act Perks

Ohio manufacturers can apply for the following funding:

• Domestic manufacturing incentives
• Research and development and workforce development incentives
• Department of Defense or microelectronics commons
• International efforts from the Department of State
• Workforce education from the National Science Foundation

As long as you’re not designated a foreign entity of concern, you may be eligible for some credit types.

Application for CHIPS Act Funding 

The IRS has yet to announce additional details on CHIPS Act funding. Ultimately, it aims to empower local firms to better compete in an international industry that powers both the economy and defense. It can be the game-changer companies need to take their organizations to the next level.

Watch for more in this GJM blog series as further details emerge from the IRS regarding the application process for CHIPS Act funding.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business & transaction advisory, healthcare management & advisory, outsourced accounting, and risk advisory. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution, nonprofit, private equity and utilities.