ACCOUNTING
ACCOUNTING
Hiring a New CPA Firm ? Why Relationships Fail and What To Do
Compiled by Larry Feld
A
good Certified Public Accountant ( CPA ) relationship means having a trusted advisor to handle compliance issues like tax filings and financial audits . But sometimes , things break down . When service and pricing cause a business owner to make the hard decision to change vendors , what are the important questions to consider in order to avoid making a similar mistake again ?
To gain insight , we asked leading New Jersey CPA firms ( large and small ) to offer their candid response to the following question :
A business owner explains how this tax season exposed insurmountable performance weaknesses with their current CPA firm relationship . If a change is inevitable , what are some key considerations when shopping for a new accounting firm relationship ?
Bederson LLP Paul Reyes , CPA Partner
Mergers , acquisitions , and private equity investments in the accounting industry have increased client turnover at CPA firms . Consolidations have resulted in less personalized service and weaker client communication .
Even long-existing client relationships might require reassessment . The right fit is crucial to clients to ensure that their needs are addressed . If a firm is too large , it might delay the delivery of timely and personalized service to the client . Too small , and the client can suffer from a lack of adequate resources , expertise , and capacity to deliver what the client requires to flourish .
Timely and concise information is essential to making the right decisions . Poor communication and service , as well as unsuitably sized firms that do not meet a client ’ s needs , impede the client ’ s ability to do so . It is the CPA ’ s role as a trusted adviser to be in step with their client ’ s needs .
When searching for a new accounting firm , businesses should consider the same things that we strive for at Bederson . To prioritize strong client relationships by maintaining clear and consistent communication , ensuring service remains personalized even as clients grow . Additionally , we always consider our capabilities to align with client needs in an attempt to balance personalized attention with the necessary expertise and resources . Striking this balance helps us to retain clients and build long-term trust .
Citrin Cooperman Robert Slootmaker Assistant Office Managing Partner
The accounting firm you engage with should have specific industry knowledge pertinent to your company . With ever-changing regulations and robust tax law , the success of your engagement will rely on whether the accounting firm you choose specializes in the areas relevant to your company .
Ask detailed questions of the engagement team to ensure that the accounting firm has clients of similar profiles , in-depth knowledge that will apply to your company , and doesn ’ t rely on “ generalist ” knowledge . In addition , guaranteeing that there is a full engagement team that will interact with and service your account is paramount to a successful relationship with your accounting firm . Be sure to meet with the team supporting the engagement to get comfortable with the working relationship . You ’ ll need to ensure the team is filled with individuals with knowledge specific to your company ’ s needs .
Lastly , speak with the engagement team to confirm they have the capacity to take on your company ’ s engagement . Discuss the expected timing of all deliverables , including when the
accounting firm will need information from your company to stay on target for the timely completion of all deliverables . Clear and proactive communication leads to a successful and rewarding relationship between a company and its accounting firm .
CLA ( CliftonLarsonAllen LLP ) Nicola Bain Managing Principal of New Jersey & New York
An accounting firm is not just a vendor , they are a trusted partner invested in your success . It ’ s important that there is a cultural alignment , and that their values and approach align with your vision . Client testimonials can uncover the level of service provided , team responsiveness , whether the firm has experience with businesses and situations similar to yours , and also how a firm manages conflict .
A firm that has deep industry specialization can offer you insights and strategies beyond compliance to help you stay competitive . A full-service firm can scale with you , providing resources and expertise as and when you need it . These are all matters to consider as your business and individual needs evolve .
Continued
" An accounting firm is not just a vendor , they are a trusted partner invested in your success ," says CLA ' s Nicola Bain .
Photo : Getty Images / iStockphoto / Weekend Images Inc .
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