The Right Way to Interview an Accounting Professional
Locating a good, competent
accountant in whom you can place your trust is extremely
important and requires some time and attention.
So, what’s the best way for a small to
medium-sized business owner to find a good accountant?
An interview with accounting industry expert Walt
Montgomery reveals several important qualifications.
- Relevant experience. Choose
an accountant who has business experience that is
relevant to your industry sector. "There are certain
industries where experience is crucial," according
to Montgomery. "A good example of this is auto
dealerships where specialist knowledge gives an
accounting professional a real advantage.”
-
A personal relationship. "For the
relationship with your accountant to work
effectively at a professional level, you need to
establish a good personal relationship with him or
her first," says Montgomery. Bob Lambert, a
principal of Business Leads, Inc. a national
marketing firm, agrees completely. "Empathy with
your accountant is important.” Bob then goes on to
describe his ideal accountant as "a good listener
and someone who understands your needs and answers
your questions.”
-
Chose a firm that’s the right size for your
business. It’s generally not a good
idea for a small business, for instance, to
engage the largest accounting firm in the state.
"Choose an accountant who fits comfortably with the
size of your firm," says Montgomery. "For example,
if you are a sole proprietor, then an accountant
from a small partnership will probably be best for
you."
- Is a CPA best?
Business owners often don’t understand the
role of a certified public accountant (CPA) and, in
fact, it is not necessary to hire one for the
majority of your general accounting needs, such as
preparing and submitting tax returns and every-day
bookkeeping chores. However, if you want a loan
application prepared or need an audit carried out or
have investors who need to stay on top of the
numbers, then you will need the services of a CPA.
Recommendations, References, and Interviews
Selecting an accountant is really no different than the
process of vetting and hiring any other professional
with whom you wish to work. The first step should be to
seek recommendations from people you trust. Then draw up
a short list for interviews and be prepared to fully
check their references.
At the actual
interview, Montgomery suggests asking specific questions
about their business, their experience in your industry
sector, and how they would deal with certain imaginary
situations that are pertinent to you. "How the
interviewee answers these types of questions will give a
fairly accurate idea of their capabilities and whether
or not they are right for the job," he adds.
Fees
It is impossible to project
exactly what the fees for an accountant’s services might
be, as these will vary depending upon the nature and
size of the firm, its location, and the experience and
expertise of the particular accountant that is working
for you. "Whereas writing up and submitting a tax return
may be carried out by a relatively junior employee in
the firm and cost between perhaps $65 and $70 per hour,
it is likely that any consulting work will be done by a
partner with a correspondingly higher hourly rate of
between around $150 to $300 an hour," says Montgomery.
No Shortcuts
"If you are starting a business,
then at first you should hire a CPA that you can trust
to carry out all your accounting tasks and get you set
up with a solid foundation." Montgomery says. "But as
your business grows, these costs will probably become
too high for most businesses to justify for such routine
tasks as accounts receivable and payable, so these can
be done in-house by your own bookkeeper or outsourced on
a contract basis. A good CPA will recognize this and
even recommend that you follow this route.”
Sometimes business owners have to
learn by trial and error because there are just no cheap
shortcuts for selecting the right accountant. As
Montgomery suggests, "Look for an accountant who has the
full range of skills from basic number-crunching to
business planning.”
He also advises, "As well as the
obvious need for accounting skills, your accountant
needs good people skills, too. You will find it
difficult to meet your business objectives if you have
an accountant who doesn’t listen and doesn’t give you
good advice.”
