Wednesday, January 19, 2011

Does your current corporate accountant work for your business...or theirs?

Having a good corporate accountant is key for the success of your business. Many business owners are surprised when they realize the accountant they have been using hasn’t been doing them justice. To evaluate your current accountant here are a few things to consider.

- Has your accountant sent you any referral business? If the answer is no, then your accountant may not have a strong enough business network to support the growth of your business. A good corporate accountant has a strong client base of growing companies and provides networking services beyond basic number crunching to help their clients succeed. If your corporate accountant doesn’t have this sort of network, then you are missing out.

-Does your accountant give you strategic tax planning advice, consult with you on your long term objectives, and accurately prepare data to help you make informed decisions?  As an owner, you need to be aware of tax changes before it is time to pay your corporate taxes…by then it is too late. If your accountant isn’t in tune with your business plan and isn’t providing valuable tax updates and reports then your business is at risk.

-If you are considering changing accountants make sure you check the local State Boards of Accountancy to investigate if your CPA is licensed as well as what disciplinary actions they may have been subject to.
When screening your new corporate accountant, ask for a specific example of how they have helped one of their clients expand their business through a referral.

Also ask what specific software and technology do they use to provide their clients with accurate reporting? What tax and strategic planning services do they provide? Are they active in the community? Do they have a network of financial institutions, bankers, and venture capital companies they utilize?
As always, a referral from your own business network may be the best lead for a strong corporate accountant. You can get insight upfront, lessen your risk, and save your own time on screening a bunch of prospects.

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