Unlock Your Business Potential: Why Changing Your Accountant is a Game-Changer

by | Jul 17, 2023

As a small business owner, you understand the importance of having a reliable and competent accountant. They're more than just a "bean counter"; they're a vital partner in your financial health and business growth. However, there are times when you may find your current accountant isn't meeting your needs, and you're contemplating the idea of a switch. Although it might seem daunting, changing your accountant can be a strategic step toward maximizing your business prospects.

Here are some signs that indicate it might be time to consider a change:

**1. Lack of Responsiveness**

In today's dynamic business landscape, time is of the essence. If your accountant is consistently slow to respond to your concerns or inquiries, it may indicate that they are overloaded with work or not prioritizing your business. A 2018 study from Accounting Today revealed that 74% of small business owners desire an accountant who responds promptly to their needs. An attentive, responsive accountant can make a significant difference in your business operations and growth.

**2. Your Business Has Outgrown Your Accountant**

Your business needs and ambitions should align with the abilities of your accountant. If your accountant is struggling to provide actionable advice for growth or making mistakes due to increased complexity, it may be time for a change. A good accountant should be able to adapt and scale with your business, making the most of available technology and software to optimize your financial strategies.

**3. Lack of Proactivity**

A great accountant doesn't just respond to problems; they anticipate them. They should be proactive in offering solutions, staying informed about changes in the tax code, forming close professional relationships, and adapting to the conditions of your industry. If your accountant is more reactive than proactive, it may be time to find one who is driven to help you overcome financial obstacles and seize future opportunities.

**4. Insufficient Return on Investment**

A quality accountant should provide a return on your investment. If your business isn't growing, and your accountant isn't actively involved in changing that trajectory, it may be time to find a new one. Good accountants do more than just fill out tax forms; they identify tax credits and deductions that your business is eligible for and strategize to maximize savings. 

So, how do you make the switch smoothly?

**1. Do Your Due Diligence**

Ensure your new accountant has a solid reputation for quality work, experience in handling business taxes, strong credentials, and the capacity to take on new work. It's crucial they understand your industry and demonstrate a commitment to continuous learning.

**2. Understand What You're Contracting For**

Be clear about the services you will receive and the cost. Many accountants offer more than just routine tax preparation; they provide tax advisory and consulting services that can help reduce your tax liability.

**3. Be Prepared to Do Your Part**

Organize your files well, and be responsive during the transition period. The more information and documents you provide to your new accountant, the better they will be equipped to file your taxes accurately and in a timely manner.

**4. Consider Filing an Extension**

If you're switching during tax season, filing an extension may be the best way to avoid penalties and interest. Remember, the extension only gives you more time to file; you must still pay your tax liability by the original filing date.

In conclusion, changing your accountant might seem like a daunting task, but it's a necessary step if you're not receiving the service and advice your business needs to thrive. By keeping these tips in mind, you can ensure a smooth transition and lay the groundwork for a successful partnership with your new accountant.

Freese, Peralez, & Associates is currently taking on new clients, if you need more information on how to make the switch, contact us today!