UPDATED 2022: 15 Signs That You Might Need a New Accountant

Business owners rely on their accountants to file taxes, provide them with reliable financial advice, and guide them on growing and operating their business. Working with the right accountant can make a significant difference in the economic well-being of your business. Unfortunately, many business owners assume that their accountant knows what they are doing because they earned the Certified Public Accountant (CPA) designation, but putting that knowledge into practice is another story.

Here are 15 signs that you might need to look for a new accountant – or at the very least review the quality of the service and advice currently being provided to you:

1. They haven’t adjusted for the ongoing COVID-19 pandemic, like offering Zoom meetings instead of in-person contact or providing a safe and secure way to receive and submit documents electronically.
2. They cannot assist you with pandemic-related issues, such as Paycheck Protection Program forgiveness or applying for the Employee Retention Credit.
3. You have minimal contact with the engagement partner.
4. Phone calls or e-mails are not returned in a timely manner.
5. They do not offer proactive ideas to minimize your tax obligation or plan for the future.
6. New accounting rules and regulations are not brought to your attention.
7. Answers to your questions are generic and not always applicable to your situation.
8. They have little or no expertise in your industry.
9. Deductions that you are entitled to are missed.
10. Your tax return is always put on extension.
11. Your estimated taxes are either too high or too low.
12. You had to pay a penalty to the IRS or another agency because of a mistake made by the accountant.
13. You don’t understand your financial position.
14. They do not give strategic advice and guidance on improving your business or increasing profits, allowing you to focus on running your business without worrying about the accounting complexities.
15. You do not perceive the value of the services they provide.

As with any relationship, communication is essential. Make sure that you keep your accountant apprised of what is happening in your business, including key personnel changes, regulatory requirements, or industry trends that could impact you, as well as notices received from the IRS and other agencies. Leaving things to the last minute, having unreasonable expectations, and not disclosing enough information can hamper the relationship.

Contact Us

If you feel that your current accountant doesn’t offer support and guidance when needed most, it might be time to make a change. To learn more about how Klatzkin can make a difference in your personal or business tax situation, click here to contact us. We look forward to speaking with you soon.

©2022 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.