Part 3: Finding the right fit
Choosing the right accountant is one of the most critical decisions a business owner can make. The right financial partner can help streamline operations, ensure compliance, and provide strategic insights that drive growth. However, with numerous accounting professionals available, it can be challenging to determine which one is the best fit for your business.
In the first two articles of this series, we outlined the different types of accountants that there are, as well as the various highly-specialized accountants that can help certain industries with non-standard accounting and finance-based needs.
This article will help tie them all together, outlining a structured approach that can be used in selecting an accountant by assessing your needs, using a decision framework, and evaluating potential candidates effectively.
Before selecting an accountant, it's essential to evaluate your business's current financial needs and future goals. Different businesses require different levels of accounting support, and identifying these requirements upfront will help you make an informed choice.
Startups often need help with entity selection, financial forecasting, and initial tax planning. At this stage, a knowledgeable accountant (will? should?) assist in setting up bookkeeping systems and ensuring regulatory compliance.
A startup founder may not be an expert (or even familiar with) proper accounting, so an accountant can help them better understand the financials and necessary documentation for their new business.
Depending on their familiarity and the size/growth trajectory of the company, the business owner could also handle a large portion of financial transactions at this stage of their development, including payroll, bill paying, etc., or they can hire a part time bookkeeper
As businesses expand, financial complexity increases. Accountants play a crucial role in managing cash flow, overseeing payroll, handling tax obligations, and providing strategic financial planning to support scaling operations.
Established businesses require accountants for in-depth financial analysis, investment planning, compliance with evolving regulations, and optimizing profitability. At this stage, companies may consider hiring a CFO, a fractional CFO, or outsourcing advanced financial management services.
The cost of accounting services varies based on experience, specialization, and service offerings. Business owners should balance affordability with the value provided, ensuring that their chosen accountant meets essential needs within the available budget.
Some businesses may lack the time or expertise to handle accounting tasks internally. Outsourcing accounting services can be a cost-effective way to ensure accurate financial management without overwhelming internal resources.
Beyond immediate accounting needs, businesses should consider their long-term financial goals. Whether planning for expansion, investment, or succession, an accountant with expertise in future financial planning can be a valuable asset.
What are the critical questions that business owners should ask before hiring an accountant, or deciding which one is the right choice for their business? Let’s go through those now.
Identifying which accounting services are non-negotiable versus those that are nice to have can help narrow down the right fit. For example, tax compliance and payroll management are most definitely essential, while business advisory services might be an extra cost that is not justified at their current stage and financial position.
Hiring an accountant should be viewed as an investment rather than just an expense. A good accountant can save money by identifying tax deductions, improving cash flow management, and providing financial strategies that enhance profitability.
Businesses should determine the level of support they require - whether it’s occasional tax assistance, monthly financial oversight, or full-service accounting and financial management.
As businesses grow, their accounting needs evolve. It’s important to choose an accountant who can scale with your business, offering additional services as needed without requiring a complete transition to a new financial professional.
In today's digital landscape, accountants who are proficient in cloud accounting software, automation, and financial analytics tools provide a competitive advantage. Business owners should evaluate whether potential accountants are up to date with the latest technology.
Once your search has been narrowed to the type of accountant desired with a list of potential options, the following questions to ask and red flags to heed should be kept in mind:
When interviewing potential accountants, business owners should ask about:
Industry experience
Service offerings and pricing structure
Familiarity with relevant accounting software
Approach to financial strategy and planning
Availability and communication frequency
Some warning signs that an accountant may not be the right fit include:
Lack of relevant industry experience
Vague pricing structures with hidden fees
Limited availability or poor communication
Outdated technology or resistance to modern accounting tools
No clear understanding of business growth strategies
Before committing to an accountant, business owners should review service agreements to clarify:
Scope of services
Payment terms and pricing structure
Confidentiality and data security policies
Contract duration and termination clauses
Checking credentials, certifications, and client reviews can help verify an accountant’s experience and reliability. Business owners should also seek referrals and testimonials from other businesses in their industry.
A strong working relationship with an accountant requires clear communication and mutual understanding. Business owners should choose an accountant who aligns with their working style and can explain financial concepts in an understandable manner.
The process doesn’t necessarily end with finding the right accountant to hire. As with most things, the business relationship must be developed as it progresses, in the following ways:
Once an accountant is selected, fostering a strong partnership is key. Business owners should schedule regular meetings, maintain open communication, and seek proactive financial advice.
Defining clear expectations from the start ensures a smooth working relationship. Business owners should outline reporting schedules, preferred methods of communication, and specific financial goals they want their accountant to support.
Periodic financial reviews help track progress, identify potential issues, and make necessary adjustments. Scheduled financial check-ins allow businesses to stay on top of their financial health and optimize performance.
As businesses grow and change, accounting needs may evolve. Business owners should periodically evaluate whether their accountant is still the right fit, considering factors such as service quality, scalability, and alignment with future goals.
Selecting the right accountant requires careful consideration of your business’s unique needs, financial goals, and future aspirations. By following a structured decision-making approach (assessing your needs, evaluating service offerings, and ensuring a good fit) you can find a financial partner who not only meets your current requirements but also supports your long-term success.
With the right accountant in place, your business can achieve financial stability, compliance, and strategic growth well into the future.
