Engage the right firm

Accountants can do so much more for
a business than crunch numbers — if
you select the right firm. Ideally, you’ll choose an accounting firm that complements your business, addresses your
needs and rounds out your internal skill
sets by offering value-added services.

“At the end of the day, you can look at
your accounting, tax and consulting fees as
overhead or as an investment,” says
Stephen Christian, Managing Director,
Kreischer Miller, Horsham, Pa. “We view it
as an investment. It is important to engage
a firm that will advance your cause and
make you a better company, as opposed to
just preparing financial statements and tax
returns on a timely basis,” he says.

Smart Business discussed with Christian
the significance of using the right accounting firm and how to select the best one for
your business.

Is one kind of accounting firm better than
another?

We can break accounting firms down into
three general categories. There are large,
international firms that are compliance-oriented, process-driven and tend to work
with large Fortune 1000 corporations. At
the other end of the spectrum are smaller,
local accounting firms that generally are
more tax-focused. Somewhere in the middle are regional firms, like ours, which provide the skill set of national firms and the
entrepreneurial slant of smaller firms. All
three types of firms serve their customers
well. Your choice will depend on your
needs and expectations. Do you want a
firm that simply meets your compliance
needs, or are you interested in more of a
consulting relationship? There is no right
or wrong answer. You must determine your
needs, then figure out the best fit.

How does a business owner decide what type
of accounting firm to use?

Almost all accounting firms prepare tax
returns, and most can help with your financial statement needs. What else is important
to you? Are you seeking a low-cost firm, or
do you want to work with an accountant
who provides more value-added services?

Are you comfortable with several different
associates with specific skill sets handling
your account, or do you prefer to work with
one person? Will you rely on your accountant as a balanced, financial voice as you
grow your business? Or, do you simply want
someone to crunch the numbers and prepare financial reports? You need to be honest with yourself as you determine what you
truly value in a relationship with an accountant. Make a list of your needs and expectations before you begin your search.

How does management identify a potential
firm?

Start by talking to your lender at the
bank. He or she can point you to reputable
accounting firms that do the type of work
your business will require. Ask your attorney and other business peers for referrals.
What firms do they use, and are they satisfied with the service? As you collect names
of potential firms, study their Web sites and
get a feel for their company culture and
areas of specialty. What services do they
offer? From there, narrow down your list
to several and invite them to your business
for an interview.

When selecting a firm, how do you determine the right fit for your business?

Every company is different — every business owner has his or her own nuances
and style. Accountant candidates should
want to spend time getting to know your
business, your industry, your company
structure and you, personally. Take them
on a tour of your facility and introduce
them to other key employees. Help the
accountants understand who you are.
Chances are, you will connect with one of
the candidates you interview. But be sure
to ask them some of these questions: How
do you envision the capabilities of your
firm meeting my needs? How much contact will I have with senior management in
the firm? What is your attitude toward professional development for your associates?
(You want to know that they are constantly learning so they can bring more to the
table for your business.)

Try to determine from your conversations whether the personalities of the representatives are compatible with your
team’s. Is the culture at the firm similar to
yours? Finally, be sure to ask for references. When you contact a reference, ask
him or her: Why are you a better company
today for using this firm?

What value can you expect by working with
the right firm?

The ideal firm will care about your company’s success. It will serve as a solution
provider and offer facts and benchmarking
information that will help you better understand your business. Along with your financial statements, the firm will deliver statistics from the best-run companies in your
area so you can compare your performance. As you run your business day to day,
you often don’t have time to stop and ask
the simple question, ‘How am I doing?’
Ultimately, your accountant can help you
answer that question and direct you to
solutions so you can grow and prosper.

STEPHEN CHRISTIAN is the Managing Director at Kreischer Miller in Horsham, Pa. Reach him at [email protected] or
(215) 441-4600.