4 Signs You Need to Hire a New Accountant
Change is hard. Even when we know changing something is the best thing to do, thinking about what it will take to transition sometimes prevents us from doing it. It’s a lot of work! Think about your accountant. This could be your bookkeeper, tax preparer, or anyone who assists you in the realm of accounting. You’ve been with the person or firm a long time. You know the person. You know what to expect, good or bad.
Maybe you don’t feel fully satisfied with the service you’re receiving. The problem is you have nothing to compare it to. Is this the best you can get? Are you getting a good value for your money? Here’s a few signs that you may need to look for another accountant to handle your financial needs.
Lack of Communication. “My accountant takes days to return my phone calls or emails.” “I found out on tax day that my accountant is filing an extension. I didn’t realize there was a problem.” If you’ve said either of those statements or something close, it might be time to make a change. Clients should never feel that they are being ignored or their needs are not important. Your accountant should be proactive and responsive. It’s reasonable to expect calls and emails to be returned within one business day under normal circumstances. If there are problems with time-sensitive documents, like tax returns, your accountant should be immediately informing you of the problem so it can be rectified in a timely manner.
The Work is Slow or Late. “My accountant files an extension every year, but I give him all my stuff way before the due date.” “It takes a month to get the previous month’s financial statements closed for my business.” Slow or late work is usually a sign of an accountant who has too many clients and is overwhelmed, or an accountant who places you low on the priority list. Regardless of the reason, if you’re not receiving your deliverables when YOU need them, it’s time to move on.
You Feel Unimportant. “I know my accountant has clients much bigger than me. I’m just a small revenue stream for him and he gets to me when he gets to me.” You deserve better than this. Anyone providing any kind of service should make customers feel like they’re the only customer in the world. It sounds lofty, but a dynamite service provider can make every customer feel that way.
Poor Problem-Solving. Amy owns a small business. She hired a bookkeeper to maintain her books every month. At tax time, her tax preparer reviewed Amy’s financials and told her he couldn’t prepare her return because the financial statements made no sense. Amy called her bookkeeper to inform her of this issue and also to figure out what the problem was and get it fixed. The bookkeeper’s reply was, “Well, just fire him and hire another tax preparer.” This actually happened (names have been changed). This is NOT a solution. If you feel like your accountant is offering you poor solutions, like Amy’s bookkeeper, it’s time to find someone new.
How to Find a Good Accountant. If you identify with any or all of the situations above and are ready to move on, here’s a few tips to find a good accountant. First, a word-of-mouth referral from trusted friends or colleagues is always best, especially if they currently use the accountant. Nothing is better than first-hand experience. If no one has a good referral for you, online directories are useful, but be wary. Most of them are just an indication that the accountant paid to get listed. Some are even free. If you use or would like to use Quickbooks or Xero for your business, both have online directories of accountants certified in those software packages. Again, it doesn’t guarantee anything, but it’s a good starting point.
The best thing you can do when looking for and choosing a new accountant is to meet face-to-face with some prospects. Most offer free consultations. Ask about their background. How long have they been an accountant? Do they specialize in a certain industry or a certain area of accounting? Do their qualifications match your needs? Does the way they interact with clients match the way you want to be interacted with? For example, if you want an accountant to come onsite to perform the work every month, but the prospect requires a remote arrangement with clients, it’s probably not a good fit.
Finally, when talking with prospects, make sure you “click” with the person you’re going to retain. Your accountant should be your best friend. Seriously! They keep your finances in order, they keep you in compliance, and they free up your time so you can work ON your business instead of IN your business.