How to Know If You Have Outgrown Your Accountant

Posted by Rex Ours on May 20, 2015 10:40:30 AM

How-to-Know-If-You-Have-Outgrown-your-Accountant-fbYour accountant is a critical part of your financial team. It is very important for you to have the right one on your team. So how do you know if it is time to get a new accountant? 

Here are some clear signs to know if it is time for a change. 

The Test

  1.  If your accountant is a primarily an after-the-fact historian with regard to your financial information, it is time for a change.
  2. If your accountant just collects your financial information after year-end only to file your tax returns, it is time for a change.
  3. If your accountant does not meet with you at least once in the fourth quarter to discuss year-end tax planning, it is time for a change. 

    You should be meeting with your accountant in the first and second quarter, to make your year plan, but if you are not having at least a year-end tax-planning meeting, it is time for a change.

  4. If your accountant, when asked if you should take this credit or deduction only gives you a fast no, without discussing alternatives, it is time for a change. 

  5. If your accountant has never asked you the following questions:
    • Do you have will?
    • Do you have a living trust?
    • Do you have a plan for your estate?
Then he is not a strong enough accountant and it is time for a change. You want your accountant asking you these questions and looking at the whole picture and not just the tax returns. 

What Should You Look For?

If your business has a around $100K - $500K in annual revenue with net profits of $50K - $100k, you most likely only need the support of a one-man accounting shop or a small accounting office. 

But as you grow your business and start taking advantage of various tax credits, selling products overseas or changing your business model, you need an accounting firm with talent that can meet your needs. (For more information read: What Type of Tax Help Does Your Company Really Need?)

Take action today and decide if your current accountant is the right one to have on your team to help you and your business succeed.  If you have any questions about this please contact us or comment below.


Rex Ours

Rex Ours, CPA, is a Partner at Milam, Knecht & Warner, LLP. His professional background includes experience at the international CPA firms Ernst & Young and B.D.O Seidman and as a CFO for a publicly traded manufacturing company. When not at work, you can find Rex enjoying a round of golf or enjoying the fresh sea air. 

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Tags: Entrepreneurship, Accounting