- December 2, 2022
- Posted by: Kangming
- Category: Accounting Industry
When facing with a variety of different service providers in the market, company’s executives always find it’s hard to evaluate those services and pick the most suitable one. Not like products, service qulity is usually intangible. In terms of market position, the service providers are generally divided into three categories:
- Strong brand and service innovation, such as the Big Four.
- Middle-sized service provider with good service quality, English communication and international vision. Such as BDO international, RSM, Mazars, etc.
- Small-sized service providers at the bottom lack an internationalized vision and rely on low prices. The so-called Guanxi is often used to acquire
The first category is undoubtedly the most costly and is only applicable to large enterprises who need endorsement from professional service agencies. In addition, this kind of compliance cost will also be high.
The second category offers a more friendly price, which is suitable for medium size foreign investment enterprises. However, the common state-owned and domestic capital would rarely choose those services, unless there are specific requirements.
The third category offers the lowest price, which comes with a high risk. Lack of business sense, those services are merely “mass production” in the industry: fees are based on work volume rather than the problem solving. Only newly started companies with almost no revenue would consider it temporarily, definitely not a long-term plan.
Here are some tips on selecting service providers:
- The communication ability of the service provider. The service provider is not only based on the information provided by the customer, but also based on the information provided by the customer to find problems, propose problems and relevant solutions.
- The service provider can respond to the customer’s requirements in the shortest time.
- Professional ability. The service provider does not simply say “yes” or “no”, but can find out the favorable and unfavorable aspects for customers from the wordings and figures, and can advise clients in a timely manner.