01/ 03/ 2007
by Jeffrey Moses
Having the right accountant can make all the difference for a small business. The "right" accountant will be:
- Experienced in all areas of small-business finances
- Knowledgeable to some extent in your particular type of business
- Local to you or at least knowledgeable in all local regulations, taxes, etc.
- Expert in a wide array of investments, both for your company and your personal finances (immediate, long-term and retirement)
- Proactive in making suggestions for business ownership, expense reduction, organization of in-house bookkeeping, arrangement of payments and payroll, etc.
- Available to act as an overall financial and business advisor, not just a tax preparer.
The following suggestions can help you locate a good accountant and start building a working relationship from the start.
1. Ask for recommendations from successful individuals you trust. By far, the best chance to locate a good accountant is from a recommendation by someone you know and respect (business owners, bankers, insurance agents, your business' trade association, etc.). If you ask five or six people for a recommendation, you may find one or two accountants mentioned several times. Clearly, these would go to the top of your list. Try to put together a list of at least three to five accountants.
If you do not wish to ask others for recommendations, make note of advertisements in local newspapers and magazines. It's more difficult to find a suitable professional (accountant, insurance agent, attorney) from ads, but you can at least put together an initial list to interview.
2. Before contacting your list, write down exactly what you need in an accountant, using the definitions of the "right" accountant above and all specific needs your company may have.
3. Set up personal meetings with each accountant on your list. Talk with them face-to-face with the goal of determining their experience and knowledge. The first meeting should be, in essence, an interview, using your company's requirements as the basis for conversation.
4. Ask the size of the accountant's firm. Will assistants be handling most of your work, or will you be able to interact one-on-one with the accountant?). Ask hourly charges or overall fees for specific services, such as tax preparation, creation of a business plan, etc. The size of the accountant's firm should feel right to you: not too big, not too small. Some small-business owners like to work with accountants who keep relations mostly formal. Other owners prefer an accountant who is a little more laid back, and who can drop everything at a moment's notice when called with an important question.
5. Before making your selection, call your top prospects a few times, seeing how quickly your call is returned. You might even call with a specific question or two about taxes, retirement financing or other financial issues pertaining to your business. See how quickly they get back with you and how complete their answers are. See how pleasant they are to work with when answering your questions.
6. Finally, make a selection and meet with the person to begin going over your complete operation. Think of your first two meetings as a continuation of your search. Remember, you're looking for a long-term relationship, and it may take you more than just a few meetings to be certain that you've found the right person.
You shouldn't have to have all the creative ideas. Just by going over your company's financial situation, needs and goals, your new accountant should be able to start arranging and streamlining your financial operations. If this doesn't happen, or if you aren't satisfied with the direction the relationship is taking, don't hang on. Terminate the relationship (taking any valuable ideas that have emerged) and move on to the accountant who was next on your list.
