The 5 Early Signs an Accounting Firm Has Turned Sour

If you are like most business owners, you have an accounting firm on a retainer. You made sure that you did your due diligence before hiring them, but you may not have considered the possibility that they could turn sour. 

This is a common problem and one that you need to be on the lookout for. You may not be able to prevent it, but you can at least try to notice the signs early. 

This blog will look at these 7 early signs an accounting firm has turned sour and that it is time to make a switch.

1. They have insufficient knowledge of your sector or company.

This can be manifested in a number of ways, from not being able to answer basic questions about your business to not being able to provide relevant advice about specific industry issues.

The accounting firm needs to know your sector or company inside and out. They need to be able to speak with you about any issues that you are having with your business and be able to provide you with applicable solutions. 

An accounting firm that does not know enough about your industry is essentially the same thing as an architect building a house. If the architect does not know what a drain and a toilet are, then the house will not have working plumbing!

If you want your accounting firm to do a good job for you, you need to make sure that they have the skills and expertise to do so.

2. They cannot be reached when you need them.

Accounting firms rely on timely communication in order to function properly. If the firm you are working with is unresponsive or unavailable, it is a clear sign that they are not meeting your needs.

This can lead to major problems down the road, so it is best to find a new firm that can provide the level of service you need.

3. They are not using the latest in technology.

One sign is if they are still using an antiquated accounting software system. If they are years behind in upgrading, this is not a good sign. Another sign is if they do not have a strong online presence. 

In today’s world, a strong online presence is essential for businesses, and if the accounting firm you are working with does not have one, it could be a sign that they are not keeping up with the times.

Finally, if they are not using cloud-based accounting, this is another sign that they are lagging behind. Cloud-based accounting is the future of the industry, and if the firm you are working with is not using it, it is a sign that they are not keeping up with the latest trends.

4. There have been organizational structure adjustments.

If there have been changes in organizational structure, then it is a sign they are going sour. This is because when an organization is doing well, there is no need to change the way it is run. 

However, when an organization is struggling, it will often make changes in an attempt to improve things. This can include everything from changing the way work is divided up to who makes decisions. 

If there have been significant changes in the way your organization is run, it could be a sign that things are not going well.

5. They are not approachable.

Approachability is one of the key traits of a successful accounting firm. An accounting firm that is unapproachable is likely to be unsuccessful because they are not able to build relationships with their clients. 

A good accounting firm is one that is approachable and able to provide clients with the help and support they need. A lack of approachability can be a sign that the firm is not interested in providing the best possible service to its clients. This is a key component of success in the accounting industry.

How to transfer to a new agency

Transferring your business to a new agency can be perplexing if you have only ever worked with one or two small business accounting services. You can take several measures to create a clean break.

• Inform your existing accountant of your decision to leave. This affords them the opportunity to resolve concerns and save your business prior to a transfer. If your issues can be resolved, you may save time, tension, and energy. Even if you have already decided, it is prudent to inform them.

• Inform your current accounting firm where they should mail your documents. Regulatory agencies dictate that accountants hand over their papers to the new business you select.

• Confirm file transfer with your new accounting firm for small businesses. If a cordial file transfer is denied, register a complaint with your former company’s regulatory board.

Conclusion

We’ve seen it all too often – a small business owner gets a new accountant and everything is fine for a year or two. 

Then, out of nowhere, they get hit with a massive tax bill. Or maybe they get a nasty letter from the IRS saying that they’re going to start sending out tax bills as well. If you’ve ever found yourself in this situation, you’re not alone. 

Fortunately, there are some warning signs that can help you avoid hiring a bad accountant in the first place. If you’re starting to notice any of these signs, you may want to consider hiring a new one or at least having a third-party review the work your current accountant is doing.