Finding Likely Candidates (Hiring The Right Accountant Part 2)

The best way to find a good accountant is to get a referral from your attorney, your banker, or a trusted business colleague. You can also check in with the Connecticut Society of Certified Public Accountants.

Once you have come up with 3-5 good candidates, clearly decide how much of the work you or your company will do and how much will be done by the accountant. The more detailed you can describe this work (or project) the more reliable the accountant’s estimate of the cost and time will be. Consider writing a one page accounting project description to share with each candidate.

Remember to ask each accountant for references. Do check with each reference on the skills, reliability, and accomplishments of that accountant. Ask the same questions about each accountant so can easily compare them later.

Interview Each Candidate Twice

The next step is to interview. Do provide each accountant with the accounting project description you prepared.  Conduct two meetings with each accountant candidate before making your decision. Hold one meeting at the accountant’s office and one at your site. During the interviews, your principal goal is to find out about the accountant’s experience, services, personality, and fees.

Evaluating Accountants

Your needs may differ greatly from another individual’s or another business owner’s needs. The accountant who does a terrific job for your friend who owns a $3 million retail store may not be right for you if you’re in the automotive business with much smaller or much higher revenues. Always try to consider 3-5 accountant candidates.  Ask yourself these three questions about each of them:

1. Does The Accountant Have The Right Experience?
For your business needs choose an accountant who specializes in the types of business issues you most frequently face. It’s best if the accountant has experience in your industry, too. For your personal needs choose an accountant who has successful experience working with people similar to you (similar financial goals, similar assets, etc.)

In certain businesses (like auto dealerships) an accountant who knows the nuances of the industry can often outperform an accountant new to the industry. If your personal finances include an emphasis on telecommunication investments an accountant who has worked with individuals with similar investments may be your best choice.

2. Are You Comfortable With This Accountant?
There’s a certain trust and openness that must exist between you and your accountant if the accountant is to do his or her best work for you. Make sure you feel personally comfortable with your accountant so you can build that trust and be open. You want someone who will answer your questions, listen to your needs, be responsive, and set you at ease.

3. Is The Accounting Firm The Right Size?
If you’re a sole proprietor you probably don’t want a large accounting firm handling your tax work. If you have 100 employees you probably do. Choose someone who fits the size of your firm.

In the next post we’ll discuss whether you need to be certain your accountant is a Certified Public Accountant (CPA). Please leave a comment below to let me know what you found most useful about this post. And let me know about any questions you have.

You may also want to visit Summit Investor Coach, LLC and review my blog for other educational essay on investing and finance. Or call me, Gene Offredi, at 203.453.1017.