Could Audit Price Wars Be Driving Down Quality?
With more and more companies turning to chartered accountants stating that they want their auditing bill cut if they want to retender their business, it does make you wonder what is being cut/lost in order to make this achievable.
Across the middle-tier, a price cutting war has kicked off amongst accountants to the extent that some have cut as much as 25%-40% off their original bills.
In fact, this price cutting war has got so bad that some accountants are even withdrawing from the bidding war completely so that they can focus on keeping their existing clients.
But what has prompted this war?
The answer is simple: the economy.
With companies and businesses alike all looking for alternative ways to improve their efficiencies, many of turning to their accounting needs to find savings.
Yet by demanding that their accountants charge less; businesses are risking receiving fewer services as accountants will have to make a reduction in their service offerings in order to make a profit themselves.
And as top chartered accountants explained, there is a limit to how much you can cut before the service itself becomes hindered, leading to a continuous cycle of companies asking for more price cuts to get better value for their money.
What can you do?
Whether you have got a business accountant or are looking for one, the lesson to be taken from this price cutting war is to first assess the service you’ll be receiving before asking for a reduction.
By comparing their service offering against their pricing, then reviewing these prices and services against other accountants, you will be able to judge whether you are getting value for your money.
More importantly, by comparing their service offerings and prices, you can ensure that your business is getting all the auditing support it needs.
After all, just because they are cheaper, doesn’t always necessarily mean they are better. You need to find the right balance…