Table of Contents
- What Makes Accounting Firms In NYC Unique?
- What Does An NYC Accounting Firm Specialize In?
- What Are Different Types Of Accounting Firms In New York?
- How Much Does Accounting Firm In NYC Charge For Its Services?
- Why Should You Hire A NYC Accounting Firm?
- How To Select The Best Accountant In New York
- 10 Questions To Ask Accounting Firms In New York Before You Hire One
- Takeaways On Accounting Firms In NYC
What Makes Accounting Firms In NYC Unique?
As a major confluence of the world’s financial markets, New York is the place to be when it comes to accounting.
Being the global leading force in real estate, healthcare, publishing and tech industry, as well as the world’s second-largest startup ecosystem, New York presents an ample opportunity for accounting firms to provide their services.
Your typical NYC accounting firm offers various organizations a wide range of financial management solutions and ensures legal compliance and assistance with financial choices.
Many of the world’s largest (and most successful) multinational corporations are based in New York, including several Fortune 500 companies including:
- Goldman Sachs Group
- JP Morgan Chase
- American Express
- And more
Additionally, NYC is the world’s best-performing city on Kearney’s ranking. Naturally, the city houses some of the best financial service companies and highly skilled accounting specialists in the US (more than 100,000 people in NYC work in the bookkeeping and accounting field).
Businesses will generally engage with accounting firms all year and also have the more expansive interaction during the preparation of quarterly (or monthly) audits and taxes. Most accounting firms in NYC provide tax services including inspections based on accounting audits to obtain financial data and offer invaluable tax advice.
Besides entrepreneurial opportunities, a culturally rich environment as New York is the eighth most expansive urban center in the world. The high cost of living and one of the fiercest competition across industries ensure that only the top-tiered accounting firms thrive in NYC.
What Does An NYC Accounting Firm Specialize In?
As opposed to their peers elsewhere in the world, accounting firms in New York tend to be more qualified when working for the locally dominant sectors.
According to Investopedia, these are the primary industries of New York’s economy:
- Retail trade
- Professional and technical services
While the average New York accountant offers bookkeeping and payroll services, most NYC accounting firms specialize in niche services such as tax strategy, audits and business finance valuation.
One of the main goals of an accounting audit is to look for inaccurate and questionable processes and activities in an organization’s information system.
Like any other accounting firm, NYC providers specialize in services such as:
- Tax planning and preparation
- Operational bookkeeping and payroll
- Business development and valuation
- Financial advisory and consulting services
What Are Different Types Of Accounting Firms In New York?
Accounting firms in NYC have become incredibly large and most of them branched out to create new divisions designed to cater to specific types of accounting.
They can be categorized in a few different ways based on the type of services they provide.
1. Full-Service Accounting Firms
A full-service NYC accounting firm is large enough and has enough resources to provide every single type of financial service there is.
Typically, those providers that distinguish themselves as “full-service” usually work with huge international firms and they have hundreds of employees dedicated to specific accounting areas.
2. Tax Firms
Accounting firms in New York that specialize in tax accounting work on a corporate and individual level. These are more commonly known firms that specialize in various tax planning tasks including plans for high-income tax preparation, real estate taxing and more.
3. Audit Firms
These types of firms perform audits of companies, organizations, small to midsize businesses, government entities, as well as individuals.
4. Bookkeeping Firms
Small to midsize businesses often work with bookkeeping firms. If they are unable to afford a professional CPA in New York. They use bookkeepers (that don’t require certification) to maintain their finances.
It’s important to note that all of these (with exception of bookkeeping) are considered to be Certified Public Accountant firms, which means that they are licensed in the state in which they operate.
How Much Does Accounting Firm In NYC Charge For Its Services?
The cost of accounting firms in NYC depends on the type of accounting you need, as well as the volume of work that needs to be done.
The typical hourly rate of an accountant’s services ranges between $100 and $300 per hour, but this varies on the type of work, size of the accounting company and experience. Bookkeeping services, for instance, cost significantly less.
That said, each accountant in New York may have different cost structures, with some based on client business revenue, or a flat rate followed by variable costs.
With the exception of audits, flat fees are fairly uncommon. They’re typical for recurring or predictable projects and the fee itself largely depends on the scope and nature of the project/work.
Why Should You Hire A NYC Accounting Firm?
New York hosts the largest number of accountants in the US. Considering the high competition within the industry it’s safe to assume that accounting firms in New York provide services of the highest quality.
Here are top reasons why you should hire an accountant in NYC:
- High-level talent pool: New York is the best destination for top-rated accountants from across the nation and globe. This results in highly-educated and skillful professionals that offer globally competitive expertise.
- Local Market/Industry Experience: Operating in a highly-competitive environment, accounting firms in NYC have a deep knowledge of the local market and dominant industries. They are best equipped to provide top-notch services and industry insights to help you outperform your competitors.
Service-wise, NYC accounting firm helps you:
- Save time on administrative tasks
- Provide transformative business advice
- Implement new accounting strategies and reporting systems
- Plan financial strategy
- Scale your business
- And more
How To Select The Best Accountant In New York
The “Big Apple” is home to many competent and skillful accountants. This is why choosing the best accounting firm in NYC can be overwhelming.
Follow these steps when thinking of hiring an accountant in New York:
1. Determine The Type Of Service You Need
As usual, the first step is to clearly define your business goals and determine the type of accounting service best suited for your needs.
New York accountants specialize in a few different financial areas in order to offer the best possible service for their clients. Whether it’s tax accounting, auditing or bookkeeping, you should know precisely how an accounting firm can help you achieve your objectives before the selection process even commences.
2. Evaluate Accountant’s Expertise
Depending on your set goals, you should gravitate towards an accounting firm that has already tackled projects similar to your own.
Accounting may not be as straightforward as you may have originally thought it to be. Take the time to read through their reviews and client experiences to get a solid grasp of their previous work and what results they have achieved.
3. Evaluate Their Approach About Cutting Costs And Saving Money
Ideally, your chosen NYC accounting firm will help you save money and not just manage your finances.
For it to happen, they require a deep understanding of your company’s cash flow and a proactive approach to achieving a cash surplus for your business.
4. Learn About Their Team
Partnering with an accounting firm in NYC guarantees you’ll be working with a team of experts, but what is the nature of the said team and who will manage different tasks? Are they CPA certified?
To get all the answers, you should dig deeper and ask about their individual experiences, talent, skillset and expertise.
5. Evaluate Your Budget
As mentioned above, accounting pricing may vary wildly, depending on the duration and type of service, accountant’s specialties and experience and more.
Before partnering with one NYC accounting firm, check whether their pricing structure corresponds to your budget.
10 Questions To Ask Accounting Firms In New York Before You Hire One
Before hiring an NYC accounting firm, you need to gather as much information as you can about their approach, expertise and the quality of their work.
Ask them these questions:
- How long have you been in business and what services do you provide?
- Do you have the right qualifications and certificates and is your firm, licensed in this state/country to practice public accounting (CPAs)?
- What is your pricing structure?
- Have you worked with clients in our industry before and what challenges specific to our industry concern you most?
- Will my account be handled by a single person or a dedicated team and how do you communicate with your clients?
- Can you provide feedback on my current accounting system and which (if any) accounting programs or systems do they recommend?
- Are you a cloud-based firm or a paper firm?
- What steps will/can you take to prepare my business for tax season?
- What tax software do you use to prepare returns?
- Does your fee prepare my tax return include tax advice throughout the year?
Takeaways On Accounting Firms In NYC
Accounting firms in New York are among the most qualified in the USA and the world.
They are able to infuse the latest accounting strategies when it comes to organizing business finances, managing accounts, tax preparation, bookkeeping and more.
What sets them apart from their peers are the following:
- Top-rated talent
- Local market/industry experience
- Competition-driven expertise
They tend to be most competent when working for the locally dominant sectors:
Most accounting firms in New York have an average hourly rate between $100 and $300, depending on the type of service you require.
Best of luck!