Switching advisory services for tax, labor, and accounting can be a challenging decision for any business. However, it is important to remember that having reliable and effective advisory support can make a significant difference in the financial, tax, and labor management of your business.

Knowing when it is the right time to switch advisory services is crucial to avoiding problems and optimizing your company’s financial health. Below, we outline the five warning signs that indicate it may be time to seek new advisory support.

 

Sign #1: Lack of Proactivity and Personalized Advice

A good advisor does not only fulfill your company’s obligations; they go beyond and seek to anticipate your needs.

The lack of proactivity is a clear sign that something is not right.

Why is proactivity important in advisory services?

Proactivity allows advisory services to stay ahead of business problems or risks before they become burdens. This includes, for example:

  • Tax optimization: A proactive advisor looks for deductions and optimizations to reduce the tax impact.
  • Constant updates: Tax and accounting regulations change every year; a good advisor keeps you informed and adapts to these changes to avoid penalties or fines.
  • Anticipating possible changes in payroll

How to identify a lack of proactivity?

  • You are notified of tax or labor changes when it’s already too late.
  • You do not receive optimization proposals or improvements in your company’s tax and accounting management.
  • They only contact you at specific times (such as tax submissions) without offering additional solutions.

 

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Sign #2: Frequent Errors and Lack of Precision

Errors in payroll, tax declarations, or accounting can lead to penalties and damage your company’s reputation.

If your advisory service frequently makes mistakes, it is a sign that they may lack the experience or attention to detail required to manage your finances or business operations.

What impact can these errors have?

  • Fines and penalties: Inaccuracies in declarations can result in tax penalties or future labor inspections.
  • Financial imbalances: Accounting errors affect company control and management, impacting future business decisions.
  • Loss of trust: Lack of precision in payroll and/or flexible compensation creates uncertainty and harms the trust relationship with your advisory service.

When is lack of precision concerning?

  • For example, when they repeatedly make mistakes in tax filings.
  • When there are accounting inconsistencies that are never resolved.
  • When the consultancy does not take responsibility for its mistakes nor offers solutions to correct them.

 

Sign #3: Poor communication and lack of transparency

Clear and ongoing communication is essential for a consultancy service to function properly.

If you feel that your consultancy is slow to respond, does not provide clear information, or is simply unavailable when you need it, it might be time to consider a change.

Your consultancy should maintain open communication to ensure you understand your business obligations, as well as any changes or situations that may affect you.

How to spot poor communication?

  • They take too long to respond to emails or calls.
  • They use technical language without taking the time to explain things clearly.
  • They fail to inform you in a timely manner about important changes, such as labor or tax updates or critical deadlines.

A consultancy with effective communication builds trust and keeps you updated on all processes, optimizing your relationship and workflow.

 

Sign #4: Lack of expertise in your industry or specific regulations

Some industries have their own labor, tax, and accounting regulations.

A consultancy that is not up to date on the specific regulations of your industry might not offer the best service.

The lack of specialization could lead to missed tax benefits or even penalties for non-compliance with contractual regulations.

Why is it important to work with a specialized advisor?

An advisor who understands your industry’s challenges and regulations can help you take advantage of specific deductions, anticipate changes, and comply with industry-specific rules accurately.

How to know if your consultancy has the right expertise?

  • They are not up to date on deductions or benefits specific to your sector or do not know the type of contract required for a specific situation in your industry.
  • They do not offer personalized recommendations based on the unique needs and challenges of your industry.
  • They have limited experience in industries with specific regulations (e.g., technology, international trade, or construction).

An advisor with experience in your sector knows how to help you maximize the fiscal and financial benefits available, giving you an edge over the competition.

 

Sign #5: Limited or outdated services

Labor, tax, and accounting consultancy services are constantly evolving, with new tools and digital services that improve accuracy and reduce processing times.

If your consultancy is not keeping up with these improvements, it might be falling behind.

Modern consultancy should be able to offer advanced digital services, such as online platforms for managing HR documents or automated accounting software.

Signs of limited or outdated services

  • They do not offer digital tools for remote access to documents or accounting management.
  • They lack complementary services, such as recruitment, corporate services, or international employee mobility solutions.
  • They do not inform you about how technology could improve your labor, tax, and accounting management.

Ultimately, switching to a modern consultancy that leverages technology helps you save time, improve accuracy, and optimize financial management.

Do you recognize these signs? Discover how we can help!

Schedule a free consultation or contact our team and see how a proactive and specialized consultancy can make a difference in managing your business.

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