A good accounting firm is critical to your company’s growth and financial integrity. Yet trust in their counsel is just as important, so weigh the pros and cons carefully before changing accountants.
Five Signs It’s Time To Switch Accounting Firms
- They stick to taxes. This retroactive advice works well for the short-term–no one wants to see the inside of an IRS office – but growing companies need guidance. A well-rounded accounting firm provides advice on investment decisions as well as growing income.
- Your company specializes. Their firm does not. In fact, they may even practice both personal and business accounting. This disconnect can cause missteps or lost opportunities as they lack the basic knowledge to fully understand your industry needs.
- They are hard to reach. Phone calls and emails can’t break through the gauntlet. This challenge makes it difficult to quickly analyze and implement critical decisions.
- Their language leaves you frustrated. They talk in jargon, provide unnecessarily complex explanations, or their manner feels condescending.
- Cost is too high, while a strict contract leaves little wiggle room to nimbly react to economic conditions.
The Pros & Cons of Switching Accounting Firms
Con: They Understand Your Business
If you’ve been with an accountant for more than five years, the firm knows your history in terms of capital expenditures, tax requirements, investment returns, etc. It will take time to train a new accountant, and the nascent firm could miss something – costing you more later.
Pro: The New Firm Could Propel Growth
A new accountant may provide a fresh perspective that is exactly what your company requires. Are you considering new revenue avenues? The new accountant might offer industry-specific experience.
Con: Your Accountant Seems Costly
This is a tricky balance. Hunting for the best value is important, but comparing accounting firms based strictly on cost can mean choosing one whose quality of work is compromised–remember, the savings comes from somewhere.
Pro: Money May Be Saved–If The Search Is Thorough
Consider the list of services offered by the prospective firm, check out online reviews from past and current clients, and weigh the options of an in-house versus outsourced accounting service.
Con: Your Firm is Too Small
Smaller firms often mean accountants provide services to both individuals as well as businesses. This duality can work out–but when busy seasons arrive, the firm may have trouble prioritizing or completing your job on time.
Pro: The Human Component is Critical
Smaller firms offer personalized attention, the chance to “flesh out” strategies, and easy access.
Con: Big May Not Mean Better
Large firms can be impersonal. Additionally, your account could be switched to another accountant without your consent.
Pro: They’ve Got Bandwidth
Outsourced or big firms provide more accountants and newer technology – offering you the chance to secure an advisor who is easy to work with, knowledgeable about your specific needs, and has access to and the ability to implement industry best practices.
We hope this article has given you some good insight into the pros and cons of switching accounting firms. If you are interested in switching to a new accountant in Lombard, Illinois or have any questions about this subject, feel free to reach out to us.