3 tough questions for your next accountant
The relationship between your business and your accountant should be mutually beneficial, and built on trust. But with so many firms to choose from, how do you choose one who you can trust to provide great advice and represent your needs?
The answer is to ask them some tough questions – here are our tips!
Tough question #1: How do you expect to receive my accounts?
Most businesses now use computerised accounting systems to keep track of income and expenditure. From simple spreadsheets for solopreneurs, to fully fledged accounting and ERP platforms for larger businesses, there are hundreds (or maybe thousands) of options available for managing cash.
But how does your accountant expect to access your financial records? A printed report that you send to them monthly? Or perhaps a CSV text export of your transactions that they can import into their own financial package?
Ideally you should look for an accountant who uses a system that you can both access as and when required, like Xero. These tools make life easier for you both and reduce the risk of errors and inaccuracies creeping into your records.
Tough question #2: What do you do in return for your fee?
You need to be sure that you are getting value for money, so don’t be afraid to ask exactly what to expect. Every accountant will offer to complete your annual tax return and to perform a monthly reconciliation, but you can (and should) expect to receive more.
Accountants have a wealth of financial experience and knowledge, and ideally you would like them to share both with you. Keep an eye out for potential partners who offer free audits, or can identify and recommend new efficiencies or cost saving methods that will boost your profit margins.
Tough question #3: What do your clients say about you?
In the age of self-promotion, businesses need to proudly proclaim their achievements. Unfortunately this means it is sometimes hard to cut through the hubris and gain a proper understanding of the accountancy firm and the quality of their service.
Ideally you want to be be able to gain feedback from existing customers direct so that you can get a true, unvarnished impression of the accountant. Make sure that you pursue any available testimonials from an accountant as they tend to be quite rare – those that offer them indicate a quiet confidence in their services and customer satisfaction levels.
Add your own questions
Obviously your business is unique, and has specific requirements from an accountant. Although these three tough questions cover most eventualities, you should also come up with your own to address the idiosyncrasies of your operations: for example, does the accountant have experience in your industry? Are they able to work with international transactions and clients? Can they assist with payroll and employment issues?
Whatever is it you need, ask the questions before entering into any kind of agreement, to avoid disappointment and to ensure you embark on a beneficial business relationship.
