Business Management Articles
Looking for a Meaningful Relationship (with an Accounting Firm)?
Mississauga Business Times
December 2006
Meaningful relationships are hard to find – especially when it comes to the relationship between business owner and accountant.
When you find someone with whom you “click,” you find trust, good ideas and reliable advice. And when you don’t “click”-- well, we all know what those relationships are like.
The right accountant and accounting firm can provide a business owner with support ranging from securing financing to selecting the proper business structure, to setting up bookkeeping and accounting systems, preparing financial statements, conducting audits and reviews, and offering advice on cash flow, internal controls, inventory pricing and ways to reduce both business and personal taxes. Since tax legislation and business regulations are complex and constantly evolving, you need someone who can provide advice and guidance in the areas that are critical to your business.
And, along with the right expertise, you need the right personality. You want a relationship with someone who is patient, knowledgeable and experienced -- a professional that you can trust to help you with the vital financial management of your enterprise.
So how do you go about finding the accountant with whom you can develop a meaningful long-term relationship? Take the right steps.
1. Identify the expertise and services you need
What services and support do you need now and will you likely need within the next few years? Determine what accounting, tax and financing expertise and resources you have personally, or within your business, and what resources you need from an external professional.
2. Decide what type of relationship you are seeking
Some business owners are comfortable meeting with their accountant once or twice a year to discuss just a few issues. Others want a professional who can guide them in making effective decisions throughout the year. Consider how available you want your accountant to be to you.
3. Ask for recommendations from those you trust
Ask trusted colleagues in similar businesses, your local chamber of commerce or other professionals such as your lawyer or banker, for referrals or introductions to accounting firms that work with businesses similar to yours.
4. Interview prospects
Set up meetings with two or three accountants. You want to establish a long-term relationship and to do so you need to be comfortable with one another. Inquire about credentials, experience in your industry and with your type of business. Ask about his or her ideal clients so you can determine whether you will be important to this individual. Inquire about the firm’s key services and specialties to determine whether they will meet your needs.
Seek a fit with a firm that complements the size of your business. That is, if you have a small, local business, you’ll likely be more comfortable with a small, local firm. If your business is or will soon be regional, national or international, then look for a firm that can accommodate this market.
Ask questions related to your business and industry and how the accountant deals with certain situations. Try to determine whether this professional will be responsive when you need help: how frequently does he or she speak with clients on the telephone? Visit their premises? Does he or she listen carefully to what you have to say, ask the right questions, and provide helpful responses?
You also want to determine whether you will be working directly with this individual and/or with associates in the practice and, if so, how those relationships would work. Ask to meet any other professionals who might be working on your account.
Ask about rates and fees and what kind of annual billings the accountant would anticipate for the services you may require.
5. Do your due diligence
Before making a commitment, ask your “top pick” accountant for the names of a few clients with businesses similar to yours. Contact them to find out what the individual has done for them and how well the firm has performed.
While establishing a meaningful relationship may take a little more time and effort upfront, you and your chosen accounting firm are more likely to work together happily ever after….
Maria da Silva is a senior manager in the small business group of the Mississauga office of BDO Dunwoody LLP (www.bdo.ca). BDO, one of Canada’s leading accounting and advisory firms, helps entrepreneurs and family businesses succeed. If you have questions about this article or you would like to receive BDO’s Tax Factor or Family Business Matters newsletters, contact Maria at (905) 270-7700 or mdasilva@bdo.ca.
