How do you tell that your accountant is under-performing? Do you trust your accountant to a fault? Bad accountants can go on for years without exposure. An effective accountant is very critical to the success of business. For many years, business owners have assumed that as long as their business is not getting audited, the accountant must be doing his or her job. In truth, many tax problems experienced by various businesses can be attributed to poor accounting.
Your accountant has probably been with your since you started your business and for that matter, it might be difficult to decide when it’s time to move on and find better services. Here are a few signs that will let you know it’s time to hire a new accountant.
Do they understand your industry?
An accountant who doesn’t understand your industry can cost your business a lot of money in the form of excess taxes, legal fees or even payrolls. There are accountants who have the training and experience to meet the needs of your industry. An accountant who understands your industry will deliver quality technical and commercial advice. If your accountant doesn’t understand your industry or fails to deliver comprehensive experience, it’s a sign that you need a new accountant.
Do they provide you with a regular review of your financial and tax affairs?
As a business owner you probably have a hard time keeping up with your financial affairs while at the same time trying to realize your business goals. For this purpose, you hire an accountant to help you with some of the heavy lifting. A good accountant should keep you informed and up to date with your financial and tax affairs.
They can set up a face to face meeting with you, send you an email, a newsletter or even call you. If your accountant makes no effort to keep you informed, it just might be the sign you need to hire new accounting services.
Do they provide value for your money?
While the money you pay for accounting services is important, what matter is the value of services you get. You might be paying expensively for the accounting services your business needs and yet there might be under-performance issues in your accounting department. While accountants’ fees vary greatly, you should receive value for the services you pay for. Accountants should provide you with a quote for all the services they will offer your business. They should be transparent about their pricing and also inform you of any additional services your business might need. An accountant who fails to do so probably doesn’t provide value for your money either.
Are they subject to lawsuits or complaints?
It is important to have periodical checks with your state board of accountancy for any form of complaints that they may have against your accountant. If your accountant faces non-compliance issues or any disciplinary action on file, consider hiring a new accountant.
Do they provide you with good services?
Good services include meeting deadline schedules and delivering accurate work. A good accountant should have a highly disciplined process that meets the needs of a client. You are counting on your accountant to pay your taxes on time, pay your employees and other time pays for any goods or services your business needs. Lack of a highly disciplined process is a sign that deadlines will be missed which could result in fines.
How about hiring a new accountant?