If your business has a long-term relationship with an accountant, it is natural to resist the idea of change. It is always easier to retain already existing relationships and procedures than it is to try something new. There is no question, however, that as a business develops and grows, its financial and accounting requirements change as well. You may not need to change your accountant, but as with all service providers, you should assess their performance annually nonetheless.
Forecasts or Accounts?
It is a sad fact that many accountants provide only the most basic of services for their customers. If your accountant puts together your tax return for you each year, and helps you with your historical documentation, you might initially be satisfied. If you wish to get an edge as a business, however, you will need to start projecting that historical performance into the future, taking account of new developments and plans for business expansion. A good accountant should be able and willing to help you with such forecasting, adding value by working with you to plan the future of your business as well as documenting its past.
Asking the Tough Questions?
As well as being capable of putting together financial forecasts for your business, you should have the kind of relationship with your accountant which allows them to ask you tough questions. Rather than cloaking their questions and answers in accountancy jargon, your accountant should be comfortable enough with your business to provide direct advice. An impartial and objective view of the direction in which your business is heading is vital, and can be very helpful in determining your future business strategy. If your reserves are low, or a cashflow crisis appears imminent, the last thing you want is an accountant you will simply prepare your documentation and say nothing. Finding a professional who will take a proactive approach in these situations can save your company large amounts of money, and will save you large amounts of effort!
The Right Price?
Not all accountants are suited to the challenge of working with a growing business. Some companies work in particular areas in which the financial and tax regulations are particularly specialised, whilst others may wish to execute a particular financial strategy with which their accountant is not familiar. Even if your accountant does have the correct skillset for the new challenges faced by your business, however, there is no guarantee that they are offering you the best deal available. Every year, you should check for other financial professionals in your area and obtain quotes from them for the same services currently provided by your accountant. Once you have done this, don’t be worried about asking for a better deal from your current provider, or asking for the reason that they are charging more. After all, this is business, and it is incumbent on you to save as much money as you can. Don’t stick with a bad deal, simply because it is what you have always done.