Thursday, November 09, 2006

Choosing an Accountant A Make or Break Decision for Your Business Venture

Make no mistake, in the unhappy event of things going horribly wrong, it's you in the hot-seat, even if you think the accountant is to blame. So don't settle for the phonebook lottery approach. This is a VERY important decision, take your time, and do the research.

This article is a checklist of some basic steps you can take to avoid the cowboys!

1/ Ask around! If you have friends/associates in business then ask them to recommend an accountant to you. Accountants can be invaluable if they're good and disastrous if they're bad. If you know someone who has been through a few financial cycles with their accountant and still speaks well of them, that's a really good sign!

2/ In most countries, declaring you have qualifications that you don't is illegal. So find out what qualification your accountant has. If you're in doubt get them to confirm it in writing.

Meet your accountant face to face in their premises. It's great if your accountant is happy to visit you at work or even at home. But when you're trying to assess their professionalism you need to look them in the eye over a desk in their office. There are two very practical reasons for this. Firstly, you can at least be fairly sure you have their real business address. Secondly seeing your accountants workplace can help give an impression of the state of their business, and their attitude to their work. If the surroundings don't look like your definition of a productive work environment, then perhaps they're not, or perhaps you have different standards.

Ask your potential accountant how he/she will work, perhaps he will want to impose a set of practices upon you, perhaps this is just what you need. But on the other hand you need a system that you can understand. If he wants you to adopt a set of practices make sure you understand how they work.

Who will do the work? Find out if you are speaking to the person who will actually do the work on your behalf, if not, you need to speak to them.

Remember you are making the first tentative steps in what may well be a very long relationship. Think of your accountant as you would a major shareholder in your company, is this someone you'd be happy to discuss all the prickly details of your finances with?

Telephone your accountant "out of the blue". He will most likely be busy, that's understandable, but did he get back to you? It's amazing how many fall at this first hurdle. If he can't be bothered to call when you're a new client imagine yourself one week from a government deadline! An accountant who doesn't value your business is a liability! (excuse the pun).

This may seem a little over the top, but just remind yourself who is liable for the decisions your accountant makes! If your accountant can't communicate the decisions he makes; operate in an organised and timely manner; and treat you with respect you shouldn't be giving him your patronage and you certainly don't want to accept liability for his work!