Whether you feel like your accountant is ghosting you, they’re not meeting your business’s needs anymore, or it just doesn’t feel right working together – all are legitimate reasons and signs it’s time to find a new accountant. A new accountant is not necessarily a bad thing either, when it comes to our business, it’s all about ensuring our backend is functioning smoothly and efficiently – something that your current accountant might not be able to accomplish anymore.
In a world where change happens quickly, your business doesn’t have time to “guess” when it’s time to find a new accountant. Instead, it’s essential to understand and watch for the signs to ensure a smooth transition and that nothing gets left behind (like invoices, expenses, and reports) during that time. Here are the five signs it’s time to find a new accountant:
When working with an accountant, it’s important that they’ve established a clear line of communication and method of organization AKA a system for your business’s accounting. Clutter-free accounting is what ensures accurate data and results, meaning you’ll be able to have a clearer understanding of the ins and outs of your business’s finances.
Signs that your accountant has not set up a system – or, at least, a functional accounting system – is longer than usual wait times for data/cash flow reports, slow communication or unclear lines of communication, lack of secure storage and delivery of documents, and a lack of clarity when discussing your accounting.
One of the biggest signs that it’s time to find a new accountant for your business is the accountant using and referencing out-of-date information. With the IRS announcing updates throughout the year regarding new rules and regulations, both can benefit or cause new expenses for your business.
While it should not be your full responsibility to keep up with the latest accounting information, you should be hearing about updates from your accountant – if not, take a moment to check in with them on a regular basis on updates that may apply to your business. If you need a reference for the latest announcements, check back and read our ModVentures Blog where we post the latest news and tips for your business weekly.
This may be news, but there are two different ways accountants help businesses. One is through traditional accounting, while the other is through CAS or client-accounting/advisory services. This relates to their ability to best serve their clients, along with what they can offer their clients. One thing that client-advisory services are known for is their ability to adapt to quick business growth and changes – something that traditional accountants and accounting services struggle with.
Today’s businesses can hit overnight splurges in traffic, periods of drastic growth, or even unexpected spikes. When your accountant is not prepared to handle or adapt to this type of growth – it’s time to find a new accountant.
Life happens, but that shouldn’t be an excuse for your accountant to consistently miss deadlines. While this relates back to having an organized system – which should prevent missed deadlines even when dealing with unexpected circumstances – missing deadlines is a huge sign it’s time for a new accountant.
Your finances are extremely important when it comes to running your business and missed deadlines can put a hold on how your business functions. For example, missed deadlines can lead to missing investment opportunities, lack of preparation for the upcoming quarter, misunderstanding your profits and losses, etc.
As with any other process in your business, communication is necessary and important. When your accountant lacks the ability to communicate effectively, it’s time for a new accountant. Depending on your business, daily communication may or may not be necessary – and that’s okay. What’s not okay is an accountant that fails to communicate when you have questions or they require information from you.
If you think you’re in need of a new accountant that better suits your business, connect with the ModVentures team today and see what service is right for you.