Working with a good reliable accountant or accounting company is important.  Besides making sure that you are filing your taxes properly, your accountant is the one that monitors the financial health of your business and notify you of potential finance-related issues.  So how do you choose the right accountant to work with?  Here are some characteristics of accountants and accounting companies that our experts look for:

Target Market

Like any business, accounting companies have their specific target market.  For example, a large accounting company usually services their largest clients first as they generate the most fees.  So make sure your accounting company has selected your size businesses as their target market.  

Expertise and Experience

Evaluate the accountant or the accounting company’s expertise and competence.  Beyond qualifications, you should also look at the number of years' experience that the accountant or the company has in your industry. 

Fixed-fee Billing

It is best to hire an accountant or company that provides fixed-fee billing for a defined scope of work.  Clearly define the scope of work that you need and find out exactly how much it will cost.  Ask whether you will be charged for phone consultations or in-person sessions, and the associated rates. Fixed-fee billing usually includes these items.

Rapport

When you interview the accountant that you will be working with, ask yourself if you can develop a rapport with this person.  He will be a critical member of your financial team.  Therefore, you must be able to work well with him. 

Availability and Response

Find out the ‘working hours’ of your accountant and how quickly he can response to your calls and emails.  You cannot expect 24/7 availability, but a response within 24 hours is a reasonable expectation. 

Delivery Schedule

Accounting information has a shelf life.  Accurate and timely information is critical in helping you make good business decisions.  Therefore it is important that the accountant be able to deliver key reports and information regularly and punctually.  Typical expectations are that monthly information be delivered within 10 days, quarterly information within 20 days, and annual information with 30-40 days. 

IT Savvy

The accountant or company should preferably be knowledgeable about computers and accounting software, especially software that you are using.

Partners

No accountant or accounting company can claim that they know it all.  Find out if the accountant or company has an active network of experts (e.g. other accounting experts, bankers, lawyers, investment advisors, etc.) that it can tap on.

Understandable

A good accountant will communicate with you in plain English rather than try and overwhelm you with jargon.  He will take the effort to highlight potential business issues and help you understand the financial implications. 

Look out for these characteristics when you choose your accountant or accounting company!