How To Change Accountants (& Get A Better One) In 2020

Breakups are hard. That goes for professional relationships, as well as romantic ones. When you’ve worked with someone for years, or known them as a childhood friend, it’s pretty difficult to look them in the eye and say, “It’s not me, it’s you.”

Although it’s difficult to change accountants, it’s sometimes necessary for the success and growth of your company.

Having a great accountant is vital to a company’s financial health. I’ve met with many clients throughout the year, who’ve complained that their previous accountant neglected to give them any proactive advice on improving their business.

Unfortunately, many accountants simply react to client demands, rather than extrapolating data based on current or historical data to help clients navigate upcoming issues in the present.

Additionally, bad or lazy accountants often give clients wrong or outdated advice. An accountant’s advice is usually not fact-checked by their clients since over 80% of small business owners believe their CPA to be their trusted advisor.

Bad accountants, and their misguidance, are one of the main reasons I’ve written this post. Hopefully, after reading this article, you’re better able to understand:

  • Why you need to switch accountants
  • What to look for in a good accountant
  • How to hire a better accountant (spoiler: it’s only 3 steps)

6 Reasons to Find Another Accountant

So what are some reasons you should switch accountants? Well, there are 6 reasons that I could think of as to why you’d want to leave your accountant:

No Understanding of Your Industry

When you’re hiring an accountant or CPA to help you make sense of your financial statements, it’s critical to evaluate their experience with your industry or type of business. If you’re an e-commerce company, for example, you’d want to hire an accountant who understands the unique challenges you face, like frequent product returns and sales tax-related difficulties.

Lack Of Availability

If your accountant is avoiding phone calls with you or is late in responding to your emails, it may be time to look for someone more attentive to your needs. When an accountant is slow to respond, they’re either overloaded with work beyond their capacity or that they’re not giving you the attention you’re paying to receive from them.

A Reactive, Not Proactive Approach

According to a 2014 study done by The Sleeter Group, 72% of business owners left their accountant or CPA because they weren’t offering them sound business strategies. Instead of just helping you complete a tax return, a good accountant should provide solutions to help you overcome financial obstacles or properly react to tax updates. It’s important to remember that the real value of a CPA lies in extrapolating historical trends to assess future opportunities.

Changes Within Your Company

While many businesses prefer to stick with long-time accountants, changes in your business’ management or structure can mean it’s time to change accountants. As your business grows, your accountant must continue to provide updates and advice that help you maintain and improve your company’s financial health. This goes back to picking an accountant with experience in your particular industry. 

Their Price Doesn’t Match Their Value

As Toba Beta said, “Value is more expensive than price.” When it comes to partnering with an accountant, you’ve likely got a specific price range you can afford to pay someone. But, if someone provides you with advice that doubles or triples your return on your investment in them, their value has just surpassed their price.

This is what many great accountants are noticing today. In a post for Firm of the Future, I discussed how accountants should focus on providing business advice, not just compliance-related work. In other words, modern accountants need to provide businesses with strategy, not just “check the boxes’ on tax paperwork and regulatory compliance. This mindset is missing in many legacy accountants who’re still using paper documents, instead of cloud accounting.

They Use Outdated Technology

Using technology to increase efficiency is a missing skill in many firms. This is unfortunate, since the proper use of technology can help accounting firms deliver better, more trustworthy service for their clients. 

For example, at MBS Accountancy, we use LastPass, a leading password manager, to store and manage login credentials, making sure this information is safely stored and protected against hackers and data thieves. 

We also use and train businesses on how to use QuickBooks Online® for their accounting, since it enables them to securely view their financials from anywhere, at any time. By operating more efficiently, we can provide better value for our clients, and focus on helping them develop and achieve long-term financial objectives.

The Essential Traits Of A Good Accountant

By now, you’ve hopefully gained a better idea of whether or not you should change accountants. If you’ve decided that your accountant isn’t a good match for your company’s needs, the next step is to figure out what you should look for in your new accountant. 

In addition to expertise and experience, there are 3 traits to look for in your new accountant:

  • Clear communication
  • Collaborative attitude 
  • Dedication to learning

Clear Communication

As you consider an accountant, be sure to consider how well they communicate with you. Excellent communication is what separates a good accountant from a bad one. When you meet with your accountant, they should be able to clearly articulate their insights on your financial data and performance – without you needing to become a CPA to understand them.

Collaborative Attitude

Because advising forms a large part of modern accounting, it’s vital to hire an accountant who’s able to work well with you or your financial team. If you’re hiring an accounting firm, evaluate whether its CEO tends more toward collaboration or domination with their staff.

Dedication To Learning

The best accounting professionals are committed to continually learning about their industry and their clients’ industries. An accountant with this perspective will make sure that they or their company are always advising you based on the most current tax regulations or best practices that are best for your industry.

The 3 Steps To Change Accountants & Get A Better One

Though it sounds like a lengthy process, there are only 3 main steps required to change accountants:

  • Find a new accountant
  • Inform your existing accountant
  • Wait for your new accountant to transfer your information

Finding the right accountant

When you’re searching for a new accountant, there are many places to consider looking. While recommendations from friends and family members are helpful, it’s helpful to remember that their accounting needs may differ from your own. While I certainly don’t want to discourage you from getting the opinion of a family member or recommendation from a friend, here are some additional places to look as well:

  • UpCity: This platform is designed to make it easy for you to find a trusted accounting partner. They place a significant emphasis on authentic reviews, so it’s relatively easy to narrow down your options by the number and quality of reviews. You can search for accountants on UpCity here.
  • Clutch: This platform is another directory that displays a brief snippet about the business and shows their reviews as well. This is an excellent place for B2B companies to find great service companies that make trustworthy, reliable partners. You can search for accountants here.

Inform your existing accountant

Once you’ve found a great accountant, it’s time to break the news to your existing accountant. I’d highly recommend reviewing your engagement letter, if they provided one, to see whether there is a timeframe they request you to give them before discontinuing their services.

Transfer your information

This step is jointly handled by your current accountant and your new one. Once you’ve informed your existing accountant of the transition, they’ll work with your new accountant to switch your information over.

Then, it’s time to congratulate yourself! You just gave yourself a much-needed upgrade and will hopefully benefit from more strategic advice from your new accountant. 

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