All professional service providers are not created equal. This goes for any business to business relationship you have, whether it’s with your lawyer, business coach, or web developer. The issues can run the gamut from a personality clash to incompetence to malicious behavior.
While the quality and effectiveness of the work performed by all professional service providers you hire out is vital to your business, the one closest to home – that can be most detrimental immediately and in the long-term – is the work performed by your accountant and/or bookkeeper.
So how do you know when it’s time to replace your accountant or bookkeeper? Or end any professional relationships, really.
It can be incredibly tough to know when it’s time to say goodbye, but here a few “red flag” scenarios you can learn to recognize that will make this decision a no-brainer for you.
You’re not advised to look deeply for these situations or read into one particular interaction and rush to a conclusion.
But you’ll know it’s time to seek another bookkeeper or accountant if he or she does (or doesn’t do) the following:
Listen to your Concerns
Business owners on average are not financial experts; this is why they lean on financial professionals to help them navigate the specialized waters their business affairs puts them in. This relationship should be based on mutual respect and trust. You should never feel that your concerns are ignored or dismissed as trivial.
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 of us care about – and are comfortable with – the action plan we devise.
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 his or her 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, at any time, regardless of how “rudimentary” it may seem.
Changes with the Times
While the basic tenets of accounting haven’t changed much over many, many years, there are near-constant changes to bookkeeping and accounting technology. The growth of bookkeeping and tax-preparing software has changed the landscape and market for financial professionals.
An accountant or bookkeeper who has not remained current with technology and policies and isn’t proactively learning about new, more efficient methods and processes is doing you a major disservice. Your business can save an incredible amount of time and money by utilizing the ever-growing array of technologies designed specifically to streamline your bookkeeping and financial processes and enhance your financial data making your business and personal life easier.
Ignoring upgrades, improvements, and changes in favor of the old, familiar way of doing things is a sure pathway to being left behind while your competition moves ahead of you. The old adage of “if it ain’t broke, don’t fix it” is a terrible principle for running a business.
Business owners today – more than any other period in time – know that to stay current and innovate is to thrive and to remain the same is to fail.
Rarely communicates – Clearly or at all
It’s not realistic to expect your bookkeeper or accountant to be at your beck and call 24 hours a day. However, when they are working on a client’s books or taxes, it is reasonable to expect that their attention be focused 100% on that client. Distractions like emails, texts, and phone calls can greatly increase the chances of a mistake.
That said, if you need your accountant’s attention, you should absolutely be able to get in contact with him or her within a day or so. Any business, or service provider, who doesn’t return or respond to your call, email, or text is telling you that your patronage isn’t valued.
Sometimes texts get missed, or emails go into the junk file. It happens to all of us. An occasional occurrence is ok, but if you’re finding it takes many attempts over many days – or weeks – to connect with your bookkeeper or accountant – you’re being ghosted and it’s time to seek a new one.
Your accountant should also be willing and able to communicate with your other professional service providers like your lawyer or financial planner if needed. I would certainly be concerned if your find that your accountant or bookkeeper refuses to speak with your other service providers if you request it.
Encourages Illegal Activity
Paying taxes isn’t fun. You work hard for that money and – let’s face it – handing over a portion of your hard-earned money is painful. Your accountant should work with you to ease that burden through every legally available avenue. But occasionally a business owner can run into an accountant or bookkeeper who encourages shortcuts and flat-out illegal activities.
Our tax laws make 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 bookkeeper or accountant is encouraging unethical or illegal 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?
Bottom Line:
Most bookkeepers, accountants, and CPAs have their clients’ best interests in mind and are dedicated to the business’ success. If you have great financial services providers, then stick with them. But if you recognize yourself in any of the above situations, it’s time to think about what is best for you and your business.
But first, 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 through engaging in open dialogue.
It’s imperative for bookkeepers and accountants to be able to talk freely, openly, and honestly with clients and prospective clients. Still Waters Bookkeeping knows that. After all, should we enter into a professional relationship, I become the person who is handling all of your receipts and confidential financial data.
So, it’s as important to me – as it should be to you – to take the time upfront to get to know each other and develop a sense of trust and honesty that allows you to feel comfortable when we discuss your business goals, concerns, and especially your sensitive financial information.
We look forward to hearing from you.