All professional service providers are not created equal. This goes for any business to business relationship you have, whether it’s a lawyer, business coach, CPA, or anything else you can think of. The issues can run the gamut from a personality clash to actual malicious behavior.
So how do you know when it’s time to replace your accountant? Or end any professional relationships, really? It can be incredibly tough to know when it’s time to say goodbye, but there are a few situations that should be red flags for a business owner.
Doesn't listen to your concerns
The average business owner is not financial expert, so they lean on professionals to help them to navigate those waters. This relationship should be based on mutual respect and trust. You should never feel that your concerns are ignored.
One of the key phrases I try to incorporate into my business, and that I want to hear from my service providers, is, “Does that answer your question?”. It’s such a small thing, but making sure that my answer was clear and helpful is the best way to ensure that both parties are comfortable with the action plan
It’s also important to remember that you are paying this person to provide a service for you. Never be afraid to say that you need more clarification or that their answer wasn’t as clear as you needed it to be.
If you find that your concerns are being ignored or belittled on an ongoing basis, then it is probably time to find someone else who will take the time to explain anything that you don’t understand.
They aren’t changing with the times
While the basic tenets of accounting haven’t changed much over many, many years; there are near-constant changes to the technology used in the process. The growth of bookkeeping and tax-preparing software has changed the market for accounting professionals.
An accountant that has not changed with the times and isn’t proactively learning about new technologies and processes is doing you a major disservice. Your business can save an incredible amount of time and money by utilizing the ever-growing list of technologies designed specifically to streamline your processes and make your life easier.
Ignoring those changes in favor of the old way of doing things is to ignore the improvements they provide for business in general. The old adage of “if it ain’t broke, don’t fix it” is a terrible way to run a business. Any modern business-person knows that to innovate is to thrive and to remain the same is to fall.
No/poor communication
I would never expect an accountant to be at my beck and call 24 hours a day. I would prefer that when they are working on my books or taxes that their attention be focused 100%. Distractions like emails, texts, and phone calls can greatly increase the chances of a mistake.
That said, you should absolutely be able to get in contact with your accountant within a day or so if you need them. Any business that doesn’t return communications is telling you that they don’t think very highly of your patronage. Sometimes texts get missed, or emails go into the junk file. It happens to everyone. An occasional issue is ok, but if there is cause for concern if you are consistently being ghosted by your accountant.
Your accountant should also be willing and able to communicate with your other professional service providers if needed, like a lawyer or financial planner. I would certainly be concerned if your find that your CPA refuses to speak with other professionals if you request it.
Encourages illegal activity
Paying taxes isn’t fun. You work hard for that money and you handing over a portion of it can be painful. Your accountant should work with you to ease that burden through all the available avenues. But occasionally a business owner can run into an accountant that encourages shortcuts and flat-out illegal activities.
Our tax laws makes a very clear distinction between tax avoidance, which is legal and encouraged, and tax evasion which is neither of those things. If at any time you feel that your accountant is encouraging unethical activities, then it is time to run in the other direction.
Just think, if they are willing to recommend illegal activity for you, then what sort of illegal actions are they taking in their own business? And how might those actions affect you down the road?
Before ending any relationship, take the time to address your concerns with the other person. You may find that there has been a miscommunication or misunderstanding that can be cleared up with an open dialogue. You should be able to have an honest and open relationship with your CPA. This is the person that is handling your taxes and confidential financial information.
When looking for a CPA, be sure to take the time to get to know them. There should be a level of trust and honesty that allows you to feel comfortable discussing sensitive information with them. Talking about your finances is difficult for most people because it’s a taboo subject in our society. So be sure to find someone that puts you at ease.
Most CPAs out there have your best interests in mind and will be able to help your business succeed the way you want it to. If you have a great CPA, then stick with them. But if you find yourself in any of the above situations, have a serious think about what is best for you and your business in the long run.