How to ensure you’re getting the most out of your accountant

Accountants are often brought in to a business as an adviser to address issues that are too complex or outside the wheelhouse of the business owner or executives. But not all accountants are created equal. There are signs business owners should be aware of that indicate an accountant isn’t doing as much as he or she could to help move a business forward. And when those signs become apparent, it’s time to part ways.

Smart Business spoke with Kirk Trowbridge, CPA, director at Clarus Partners, about the signs a relationship with an accountant isn’t working out, how to sever that relationship and what traits to look for in the next accountant.

What should business owners consider as they look to evaluate the work their accountant is doing?

A good place to start is to ask other service providers you currently have a good working relationship with and whose opinion you value if they could recommend an accountant.

For example, you could ask your attorney, banker or financial adviser for a list of potential accountants who they would recommend. You can then setup face-to-face meetings with the accountants on the list and determine if the person has the possibility to be a good fit to work with your organization. You can ask the accountants that you are interviewing for references from clients they currently service. It’s a good idea to ask for references from their clients that are operating in similar businesses in terms of size and industry.

What are some common signs that a relationship with an accountant isn’t working?

If you cannot get your phone calls or emails returned in a timely manner, it is usually a sign that the accountant does not value you as a client. Another sign is if you ask your accountant questions that are specific to your industry and they are not able to answer the question or at least get you an answer in an acceptable time frame. Not every accountant is going to know the answers to every question on the spot, but they should have the resources and ability to get you an answer.

Once it’s determined that an accountant isn’t right for an organization, how do you suggest the company end the relationship?

It depends on how long of a working relationship you have had with the accountant. If you have been working together for a long time, a meeting to inform the accountant that your organization no longer fits them is a good idea. It’s not necessary to give a lot of details about why you are making a change.

It’s a good idea that you put something in writing informing the accountant that you will no longer need their services as of a certain date. That way there can be no confusion on when the relationship ended. If you have only been working together for a short period of time, informing the accountant in writing is fine, but putting a date as to when you will no longer need their services is recommended.

How can companies ensure their next accountant is a better fit?

Do your due diligence. Interview more than just one accountant. Ask to meet other people in their firm. Ask to meet the other people that will be working on your account as well. Ask for an engagement in writing that specifies exactly what work the accountant will perform and the expectation of when that work will be completed. Know what the accountant expects of you as well. What information will you provide to them and in what manner? Make sure both sides know and are in agreement as to their role, and what is expected in this relationship.

Using the right accountant can be a big asset to your organization. The right accountant can both provide accurate and timely financial statements and tax returns, and can be a valuable part of your team and assist you in helping your organization be successful.

Insights Accounting is brought to you by Clarus Partners