Accountants Behaving Badly

Dear Jayme,

I want more interaction with our accountants. We ask for help and guidance, but I have to beg for a return phone call, and when they do respond, they speak a foreign language. I call and e-mail them, but they seem to be too busy for me. What can I do?
Damon

Dear Damon:

Maybe you could be too busy to write their check and then see how quickly they respond.

If you had an employee who was unresponsive and acted too busy for you, what would be your first inclination? Show them the door? Right on.

So why are you putting up with this nonsense? Just because they’re the great and powerful accountants? Or do you really believe that this is what you deserve?

It’s easy to get intimidated by the white collar people in the nice offices and fancy suits, but don’t be fooled. Most bankers and lawyers and accountants cultivate their image precisely to make clients feel just slightly uncomfortable and weak. Don’t buy it. You’re the customer, you’re writing the checks, and your wishes should be driving their actions. Walk away if you don’t get what you want.

A few thoughts:

• What, exactly, is the agreement with the accountants? If they’re only being paid to do monthly financials and the tax return, they won’t jump at the chance to burn billable hours by chatting with you.

If, however, they’ve agreed to provide service and support on demand, you have every right to expect them to not only respond, but also jump when you say jump. If that’s your agreement and they won’t perform, throw the bums out.

• If they’re dodging you, maybe they don’t have the skills or knowledge to help you. Are they capable/qualified to answer your questions? Get a second opinion from another accountant in town. If it shows that your people are unqualified, throw the bums out.
• Have a little chat with the accounting firm’s managing partner. That’s what your customers do when they’re unhappy-you should do the same. Spell out exactly what you aren’t getting and cite examples. If things don’t change dramatically (and stay changed) within thirty days, throw the bums out.

“But we’re just a small company,” you say. “We’re not big enough to have any leverage with these people.” That’s true if your small company is mismatched with a too-big (or just too-big-for-its-britches) accounting firm, but there are plenty of highly competent small and mid-sized accounting firms that specialize in smaller businesses and would be delighted to have you.

“But we’ve been with Dewey, Cheatum & Howe for years,” you say. “They know us and have all our records. A new company would have to start from scratch.” That’s what D, C & H will tell you, but meanwhile, they’re telling prospective new clients that a switch is a no-brainer, and that’s absolutely true. Real pros have seen it all before and will be able to sort out your situation pretty quickly.

How to find your new accountant: This is identical to hiring a key employee, so take your time and do your research. Define exactly what you’re looking for, check references, talk to several firms, ask your banker and attorney who’s good (they both deal with many local accountants). When you finally select one, get an engagement letter that details exactly what they’ll be doing for you at what price. Make sure the deliverables are crystal clear and what you want. If your needs change later, get an addendum in writing. (Hmmm…sounds suspiciously like a change order. You know about those.)

All accountants are not created equal. A good accountant can go far beyond simple number crunching and concentrate on using financial data to help you understand, plan and run your business. They speak English and work with you as a partner. If that’s the service you’re paying for, that’s what you should be getting.


Cheers,
Jayme

Construction Business Owner, April 2008