Creating a Value Added Relationship with your Accounting Advisor

Every business owner requires the services of outside accountants and advisors from time to time. Some business owners look at accounting as a necessary evil, and treat their accounting firm like an order taker at a fast food restaurant.

They tell them what they want, when they want it, and expect what they asked for and nothing beyond. To them, many CPAs look a lot alike. They list similar services, have the same accreditations, and all charge a fee to do what is asked.

Other business owners understand and value the contributions of an outside advisor. They believe that in order to run their business successfully they need to rely on the experience of others, both inside and outside of their organization. For these owners, finding the right advisor is critical. They need an advisor they can trust, who will bring the right opportunities and ideas, has the right experience, and isn’t afraid to give them an honest opinion.

At Presti & Naegele, we believe that creating a value added relationship with our clients requires more than technical expertise. Delivering value requires understanding both the client’s business and family situation and taking the time to help them avoid obstacles and find opportunities that fit their needs.

So what should a business owner expect? What steps can they take to ensure they are getting the most value from their relationship?

What should business owners expect from their accountant?
Business owners who truly want a value added relationship should expect their accountant to be proactively looking out for their best interests. That means finding someone that they trust to bring ideas. Like any other business owner, accountants are always looking to grow their business. In some cases, that means delivering more services to existing clients. But good advisors understand that their relationship with their clients is their most valuable asset. Bringing ideas and services clients need will strengthen that relationship. Bringing services that aren’t needed will likely end it.

If your accountant is only providing the services you are asking for, they aren’t doing you any favors. A true advisor is not an order taker. They are a confidante, a resource, and a source of ideas.

Find the right fit
Finding the right advisor is critical to getting value from a relationship. The right fit includes both the firm and the individual who will be handling your work. First, the right firm needs to have the experience and expertise that complements your organization. If you are a small business or startup, a firm that has extensive experience with small businesses will see problems before they happen, and help you strategically plan for both the challenges and opportunities you may face. On the other hand, a large corporation may benefit from working with a firm that has extensive experience within their industry and vast national or even international resources. There isn’t a one size fits all approach for organizations. It’s critical to match your needs with your advisor’s experience and expertise.

While a business certainly benefits from a firm with the right experience and expertise, it’s just as important to find an advisor that places high value in the relationship. Expertise doesn’t mean much if you don’t understand your client and have their best interest at heart. And the best advisors aren’t just cheerleaders. True advisors have built the confidence and trust to allow them to disagree with their clients.

Gain an understanding of your accountant’s services
Unfortunately, many business owners don’t understand all of the things their accountant can do for them. And while it is the accountant’s responsibility to share that information, ultimately, it is often the client that loses value. The support they need may be just a phone call away, but unfortunately, a breakdown in knowledge and communication can keep them from getting timely advice. Even the most attentive, proactive advisor can’t see every opportunity and foresee every potential pitfall for each client. The best way to ensure that you are getting the best service from your accounting firm is to understand everything they can do for you. Two sets of eyes looking out for opportunities are better than one.

Not all accounting firms are the same. Beyond the core tax and accounting activities, the services and expertise offered can vary significantly. Whether it’s estate planning, business valuations, mergers and acquisitions, technology consulting, or other services, it pays to know how your firm can bring value.

Communication is essential
After finding the right firm and the best suited relationship, open communication is essential. The more open the communication, the better your advisor will understand what you are facing. The sooner they know what you are facing, the better equipped they will be to help you implement strategies to help you sustain success. Rapid growth might require additional tax planning or cash flow planning. If you are thinking of selling your business, a valuation and related consulting can bring tremendous value by maximizing your sale price and preparing for an optimal sale.. You need to be able to trust your advisor enough to not just talk about what has happened, but what you are anticipating around the next turn.

Following these four steps will ensure your business is getting the critical support and counsel you need from your accountant. Set and understand expectations; learn what services and expertise are available; find the right fit; and communicate openly.