Finding the Right Accountant for Your Small Business
Finding the Right Accountant for Your Small Business
The reality is that many entrepreneurs don’t exercise due diligence while trying to find an accountant that will best represent their business. Experts argue that choosing the right accountant is as important to your business as choosing the right physician for your health care.
“The right accountant can help you properly structure your business, help you compare your business with similar businesses and ‘diagnose’ symptoms that cause small businesses to fail,” said Jim Layton, director of systems support and development in Fiducial’s Technical and Administrative Support Center (TASC) in Columbia, MD. “The right accountant can help the small business owner determine the right financial course of action to take.”
Dale Ellery, district manager of Fiducial’s Detroit, MI, region, maintains that having a good accountant is just as important as having a good doctor or attorney.
“It should be somebody that you have confidence and trust in that will treat your information in a confidential manner,” said Ellery. “They are looking out for your best interests and are someone you would consider a friend.”
Small business owners need to weigh a number of factors when trying to decide who to entrust their personal and professional data to.
“When choosing an accountant the small business owner should consider the accountant’s integrity, knowledge, experience and personality,” Layton said. “Integrity is vital because the small business owner needs someone they can count on for unbiased advice.”
Layton noted that the accountant should be knowledgeable and have experience in their particular business or at least have access to a support system that provides them with that knowledge and experience.
Looking for a good fit
As important as the knowledge and experience of the accountant are to the small business owner, the accountant’s personality is equally as valuable. The accountant should be someone the small business owner can relate to, can discuss their business with and is interested in their success.
“Their accountant should be personable, available and provide them with the timely information that they need to help their business grow and prosper,” Layton said.
Ellery has always liked the idea of offering a free consultation as part of an accountant’s advertising efforts since it demonstrates that the business represents some substance, identifies who the owner is and the hours the office is open. He advises that as a first step entrepreneurs should call a prospective accountant and ask for a free consultation. This is exactly what he’s been doing for well over a decade.
“Almost everyday someone comes in and sees the advertising and asks if we’re still offering a free consultation,” he said. “They remember and they tell their friends.”
According to Ellery, small business owners should ask themselves some key questions after interviewing potential accountants.
”Did they offer good, sound, educated opinions on questions?” he asked.
In Middletown, MD, Fiducial franchisee Sam Smith advises that fledgling business owners who haven’t been referred to a local accountant should go through an interview process where they talk to two to four accounting firms.
“Some firms do accounting and auditing and are not small business oriented,” said Smith. “Hopefully the principal of the firm will not tell you that you’re not a good fit. Find out if the services the firm offers are what you’re looking for.”
Finding that comfort level
Owners need to be clear on what qualifications they’re seeking in an accountant. Are they looking for a multi-faceted firm where they would typically have to hire multiple service providers for financial planning and outsourcing payroll? Or are they intent on having a diverse group to draw upon the advice of many?
Above all, Smith asks “are you comfortable with the person you’re talking to, giving them personal and professional information?”
Rates for accountants vary greatly depending on the geographic area in which they are located. For example, hourly rates are in the $60 to $70 range in the Heartland but spike up to $400/hour in New York and Los Angeles.
“You definitely don’t want the least expensive person because they’re most likely no more than a glorified employee acting as a tax preparer,” he said. “They are not going to give you any consulting advice because they don’t have the experience.”
From his perspective, Smith lets prospective clients know right away what they can expect from him in terms of professional accounting services.
“I tell them that I will come up with something during the course of our first year together that will save them more money over the lifetime of their business than they will ever pay me,” he said. “I want a lifetime client and my clients want advice from someone who’s going to be around in 10 to 15 years.”
Smith regularly gets referrals from satisfied clients who tell their friends and colleagues that he took the time to talk to them in terms they understand.
“I didn’t take it above them,” he said. “I brought it right down to their level and that worked for them in their business.”
Don’t take it lightly
Gene Polley, a senior business advisor in Fiducial’s San Diego, CA, office, suggested that very few small business owners actually take the time to fully screen their accountant before bringing them to their inner circle.
“They don’t know the right questions to ask,” said Polley. “A lot of it is personality and chemistry. Very few of them think about that. They want to know if you have experience in their industry.”
But it’s not just competency that Polley says entrepreneurs should be sizing up would-be accountants. It’s also a matter of comfort, style and aggressiveness.
“Some people have a very low-risk tolerance and some have a very high one,” he said. “If the two of you aren’t at the same level, it’s not going to work.”
Selecting an accountant is not something any business owner should take lightly. If they are doing it strictly based on price, they take their chances.
“If you choose somebody who you know cares, who’s really going to keep your best interests at heart than you have a relationship rather than a transaction,” Polley said. “It’s a better chance of a win-win, long-term relationship.”
Stephen Parezo is the Media Manager for Fiducial.
Finding the Right Accountant for Your Small Business - To learn more about this author, visit Stephen Parezo's Website.
Like this article? Share it with your friends
Getting referrals has become part of life, so much so that most people won’t visit a professional—whether it’s a doctor, dentist, lawyer or even an auto mechanic—without a ringing endorsement from a friend, relative or co-worker. So why should this process be any different when it comes to a small business owner selecting the right accountant?
The reality is that many entrepreneurs don’t exercise due diligence while trying to find an accountant that will best represent their business. Experts argue that choosing the right accountant is as important to your business as choosing the right physician for your health care.
“The right accountant can help you properly structure your business, help you compare your business with similar businesses and ‘diagnose’ symptoms that cause small businesses to fail,” said Jim Layton, director of systems support and development in Fiducial’s Technical and Administrative Support Center (TASC) in Columbia, MD. “The right accountant can help the small business owner determine the right financial course of action to take.”
Dale Ellery, district manager of Fiducial’s Detroit, MI, region, maintains that having a good accountant is just as important as having a good doctor or attorney.
“It should be somebody that you have confidence and trust in that will treat your information in a confidential manner,” said Ellery. “They are looking out for your best interests and are someone you would consider a friend.”
Small business owners need to weigh a number of factors when trying to decide who to entrust their personal and professional data to.
“When choosing an accountant the small business owner should consider the accountant’s integrity, knowledge, experience and personality,” Layton said. “Integrity is vital because the small business owner needs someone they can count on for unbiased advice.”
Layton noted that the accountant should be knowledgeable and have experience in their particular business or at least have access to a support system that provides them with that knowledge and experience.
Looking for a good fit
As important as the knowledge and experience of the accountant are to the small business owner, the accountant’s personality is equally as valuable. The accountant should be someone the small business owner can relate to, can discuss their business with and is interested in their success.
“Their accountant should be personable, available and provide them with the timely information that they need to help their business grow and prosper,” Layton said.
Ellery has always liked the idea of offering a free consultation as part of an accountant’s advertising efforts since it demonstrates that the business represents some substance, identifies who the owner is and the hours the office is open. He advises that as a first step entrepreneurs should call a prospective accountant and ask for a free consultation. This is exactly what he’s been doing for well over a decade.
“Almost everyday someone comes in and sees the advertising and asks if we’re still offering a free consultation,” he said. “They remember and they tell their friends.”
According to Ellery, small business owners should ask themselves some key questions after interviewing potential accountants.
”Did they offer good, sound, educated opinions on questions?” he asked.
In Middletown, MD, Fiducial franchisee Sam Smith advises that fledgling business owners who haven’t been referred to a local accountant should go through an interview process where they talk to two to four accounting firms.
“Some firms do accounting and auditing and are not small business oriented,” said Smith. “Hopefully the principal of the firm will not tell you that you’re not a good fit. Find out if the services the firm offers are what you’re looking for.”
Finding that comfort level
Owners need to be clear on what qualifications they’re seeking in an accountant. Are they looking for a multi-faceted firm where they would typically have to hire multiple service providers for financial planning and outsourcing payroll? Or are they intent on having a diverse group to draw upon the advice of many?
Above all, Smith asks “are you comfortable with the person you’re talking to, giving them personal and professional information?”
Rates for accountants vary greatly depending on the geographic area in which they are located. For example, hourly rates are in the $60 to $70 range in the Heartland but spike up to $400/hour in New York and Los Angeles.
“You definitely don’t want the least expensive person because they’re most likely no more than a glorified employee acting as a tax preparer,” he said. “They are not going to give you any consulting advice because they don’t have the experience.”
From his perspective, Smith lets prospective clients know right away what they can expect from him in terms of professional accounting services.
“I tell them that I will come up with something during the course of our first year together that will save them more money over the lifetime of their business than they will ever pay me,” he said. “I want a lifetime client and my clients want advice from someone who’s going to be around in 10 to 15 years.”
Smith regularly gets referrals from satisfied clients who tell their friends and colleagues that he took the time to talk to them in terms they understand.
“I didn’t take it above them,” he said. “I brought it right down to their level and that worked for them in their business.”
Don’t take it lightly
Gene Polley, a senior business advisor in Fiducial’s San Diego, CA, office, suggested that very few small business owners actually take the time to fully screen their accountant before bringing them to their inner circle.
“They don’t know the right questions to ask,” said Polley. “A lot of it is personality and chemistry. Very few of them think about that. They want to know if you have experience in their industry.”
But it’s not just competency that Polley says entrepreneurs should be sizing up would-be accountants. It’s also a matter of comfort, style and aggressiveness.
“Some people have a very low-risk tolerance and some have a very high one,” he said. “If the two of you aren’t at the same level, it’s not going to work.”
Selecting an accountant is not something any business owner should take lightly. If they are doing it strictly based on price, they take their chances.
“If you choose somebody who you know cares, who’s really going to keep your best interests at heart than you have a relationship rather than a transaction,” Polley said. “It’s a better chance of a win-win, long-term relationship.”
Stephen Parezo is the Media Manager for Fiducial.
Finding the Right Accountant for Your Small Business - To learn more about this author, visit Stephen Parezo's Website.
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