Managing your accountant or CPA is all about getting the best out of them for the not inconsiderable amount of money that you pay them.

In addition to keeping the books in order and making sure that your tax commitments are both met and kept to a minimum, they are also in the ideal position to help you and your business develop and grow.

You should start off with a letter of engagement that clearly defines your working relationship with them; what you both can expect from each other and what your respective obligations are in order to make the relationship work.

First step is to ensure that you have regular, planned communication throughout the year. Leave yourself plenty of time to discuss major items such tax returns before the end of the financial year.

No matter how well organized you both are, things can and do go wrong. But how do you know if things are going wrong?

From experience the three major tell tale signs are:

• All of a sudden your accountant or CPA is difficult to contact
• No matter how many times you ask, they fail to provide you with requested information
• You suddenly start to receive unexpected fee increases

To avoid this happening it is vital that you maintain a good relationship with your accountant or CPA.

Sharing information with them is a good way of doing this. Make sure that you:

• Keep agreed records or deadlines
• Inform your accountant of changes to your business
• Discuss major issues such as the tax implications of amounts you take out as drawings, salary or dividend with your accountant

Reviewing The Relationship

Your business will grow and evolve over a period of time. A good accountant or CPA will anticipate that and grow and evolve with you.

However, it makes sense to stop and evaluate where your relationship with your accountant or CPA is every three to five years.

These are some of the questions that you should be asking yourself:

• Am I still getting good value for the amount I pay my accountant or CPA?
• Am I able to contact them easily and get the information requested?
• Are the needs of my business still catered for by my accountant or CPA?

Answer no to any of the above and you could and probably should be looking for a new accountant or CPA.

What If I Need To Complain

If you suspect any misconduct by your accountant or CPA then your first port of call is to sit down with them. Discuss your concerns calmly and clearly and ask for their reaction.

If they accept your complaint, agree a course of action and then decide if the problem warrants finding a new accountant or CPA.

If you are not satisfied with their response then you need to take it further and make a complaint to their registered body.

If things are getting serious and you can envisage legal action being required to address the situation, then contact and engage a solicitor at a very early stage. All too often an inadvertent action on your behalf can jeopardize a favorable outcome.

Conclusion

Your accountant or CPA is a vital and key member of your business team. You need to maintain a strong relationship with them and get the best out of them for you and your business.

You need to know what your options are if something does go wrong, but prevention is way so much better than cure in this instance!

Look after your accountant or CPA, be fair with them and expect the same back in return.

This article was written by Brian K Fitzgibbon CPA.

Brian is an experienced accountant and small business consultant. He runs his own business, lectures extensively on small business topics and has checked out and valued many hundreds of small businesses for buyers.

Brian is also the author of the highly acclaimed and invaluable
"How To Value A Business And Buy It Without Fear"
A do-it-yourself guide for first-time and experienced buyers alike.

To download a FREE Chapter from Brian's book please follow this link: "HowToValueBusiness.com"

August 9th, 2009 | Tags: accountant, accountant or CPA, avoid problems, buy a business, buying a business tips, working with an accountant or CPA | Category: articles | Subscribe to comments | Leave a comment | Trackback URL  |