Shopping for a New Accountant
One day you’re out doing some shopping at your favourite supermarket and notice a brand new section. Curiosity gets the better of you, so you head over. As you walk down the aisle, to your surprise, you notice a variety of accountants packed neatly on the shelves! Some accountants carry premium brand names, some appear more budget friendly while other accountants seem to target specific niches like businesses operating in a particular industry or region. You’ve already picked up milk, bread and vegetables but now you wonder, “do I also need a new accountant”?
As we approach the end of another year, individuals and entrepreneurs will increasingly be asking themselves this important question. The answer will depend on several factors including the changing needs of their business, the quality of service their accountant provides and the level of trust they still have in their accountant. Unlike trying out a new type of yogurt, which is mostly inconsequential, the decision to “grab a new accountant off the shelf” carries a lot more weight.
To lighten your decision making load, I’d like to share with you 3 important factors to consider before you “place a new accountant in your shopping basket”!
1. The Price You Pay
Let’s face it! Price is often the first thing we consider when making a purchasing decision. Depending on your finances or that of your business, hiring a premium brand accounting firm might simply not be feasible for now! If you’re just starting out as an entrepreneur or small business, avoiding the premium accounting firm brands and going for a less well known but more affordable option might be a wise choice. However there is one misconception I’d like to address. From accurate data entry to preparing journal entries to advising on accounting standards and tax regulations; there is a lot that goes into delivering accounting services! The failure to recognise this can sometimes lead to individuals and businesses choosing the cheapest accounting firm. However this can backfire if the cheapest accounting firm struggles to deliver reports, meet tax deadlines and does not provide proactive advice. So yes, you should think about the price you pay when hiring an accountant! Both in terms of the service fees you pay but also “the price you pay” by not hiring the right accountant.
2. Reputation & Quality
You may be familiar with the phrase, “your reputation precedes you”. This is as true for us as individuals as it is for the businesses that we operate. Likewise in choosing a new accounting firm it’s important to consider their reputation including past accomplishments and failures. Generally speaking, you would want to work with an accounting firm that is friendly, trustworthy and modern; who will have the best interests of you and your business at heart! But how do you determine this? In my humble opinion, the best way to get a solid impression of an accounting firm is to speak with one or several of their existing clients. They can then give you feedback on their real life experience working with the firm; the good, the bad and the ugly! Alternative sources of information can also include feedback from individuals you trust in your network and lastly publicly available information like news articles and social media posts.
3. Scalability
Continuing with the theme of well known phrases, you’ve probably heard the saying “the straw that broke the camel’s back”! Some accounting firms are so overburdened with work that if they add one more client, the whole firm is at risk of crashing down. That’s often because these firms lack the infrastructure to be able to scale and take on more clients. As they take on more clients, the work of their existing clients is at risk of getting left behind. This can particularly be a problem if your business is growing and you want an accounting firm that can keep up! So what can you do to ensure that your new accounting firm won’t have this problem? You can do research or even ask them about the work management systems, processes and technology that they use to provide services to their clients. Typically a modern accounting firm will allow you to link your bank account to your accounting system and provide you with apps to easily digitize invoices and receipts. They will also make it easy for you to ask questions and communicate with their accountants or advisors.
