If your accountant is not serving as a partner who can advise you on broader issues, it may be time to look for a firm with a more robust set of capabilities to address your changing needs.
“At the end of the day, what return or value do you desire for the money you spend for accounting, tax and consulting services?” says Stephen Christian, managing director at Kreischer Miller. “The business world is much more complicated today — ever more complex federal, state and local tax laws, increasing international operations, and compliance with international accounting standards and enhanced business risks. Your accountant can serve as your counselor on these and other issues. Or your accountant can just ‘keep score’ by simply assisting with your company’s financial statements and tax returns. It’s your choice.”
Smart Business spoke with Christian about how to select the best accounting firm for your needs and how to make the most of that relationship.
How do accounting firms differ?
Accounting firms basically fall into three categories. There are large, international firms that are compliance oriented, process driven and tend to work best with large Fortune 1000 corporations. At the other end of the spectrum are smaller, local accounting firms that generally are more tax focused and may be resource challenged given their size.
The third group of firms sits somewhere in the middle and provides the skill set and resources of national firms and the entrepreneurial feel of smaller firms.
All three types of firms serve their clients well, but each offers a unique customer focus.
How does a business owner decide which type of firm a company needs?
Before embarking on the process of finding a best-fit solution, management needs to determine what it values in a relationship with an accountant and identify the company’s specific needs and expectations — cost, service, tax advice, international capabilities, regular business counsel?
The requirements of management of a large, publicly held company are one thing, but the needs of a $100 million privately held distribution company may be quite different. Will the relationship be more compliance oriented, possibly driving you to a low-cost provider, or more consultative in nature, directing your search to different, more value-added skills?
