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Whether you are hiring an accounting and business consulting firm for the first time or have decided it’s time to change firms, the proactive steps presented below and in LaPorte CPAs & Business Advisors’ e-book, Make the Switch, can help by providing proven guidelines for working your way through the selection process.
These steps will help you make a well-considered and successful decision. For greater detail on the below guidance and advice on easing the transition of your newly selected firm, visit laporte.com/switchbr.
Preparing for the Proposal Process
- Establish Selection Process Objectives
The selection process is time-consuming, so begin by gaining agreement across leadership on your company’s goals in seeking a new firm.
- Determine Selection Team, Timeline, and Written Request for Proposal (RFP)
Team: Clarify the responsibilities of your selection team, including: development of the RFP and evaluation criteria, identification of potential firms, participation in due diligence interviews, review of proposals and any summary reporting or scoring, and identification of the successful firm.
Timeline: Establish a timeline that provides adequate time for each step of the process.
Request for proposal (RFP): Typical areas to include are:
- Your company background and professional service needs
- Instructions on format and content
- Calendar of important dates, including: available time for onsite meetings, written proposal submission deadline, oral presentations to management and the Board (if applicable), announcement of decision
- Contact information for questions
- Preferred method for delivery of proposals
- Evaluation criteria, including any applicable weighting you have assigned to criteria
Implementing the Proposal Process
Steps for learning about accounting firms include research, face-to-face interviews and written proposals.
- Use Research to Narrow the Field
Conduct due diligence research on appropriate firms. Word-of-mouth recommendations from business associates and reputation within the financial community can also be helpful.
- Invite Your A-List to Submit Proposals
By the time you are ready to invite proposals, the field of candidates should be small. It is recommended to allow firms three to four weeks to provide a thoughtful response.
When you review the proposals, pay particular attention to responses related to fee structure, level of partner attention and other key areas of concern. Compare the proposals to your RFP to be sure that all areas are covered. Finally, consider quality, completeness, and level of detail when you rank the proposals.
- If You Are Still Undecided, Consider Oral Presentations or Final Interviews
Some companies value having final candidates make an oral presentation to address any remaining questions. Be sure to give finalists adequate preparation time, outline objectives for the presentation and provide any specific questions to be addressed.
To avoid making a final decision on fee alone, check references or revisit other important qualifications including industry experience, rapport and accessibility of partners to help distinguish between these finalists.
