Choosing your accountant - looking for a qualified accountant

Nation's Business, Nov, 1989 by Bradford A. McKee

Choosing Your Accountant

Adrienne Zoble, president of Adrienne Zoble Advertising, in Green Brook, N.J., says her first year in business was the last time she tried to do tax planning without help. She has has an accountant ever since.

"You need someone who understands the legislation and knows what it means to you," Zoble says. "There's no way I can add that kind of comprehension on top of what I need to know for my business."

For the benefit of other small-business people who reach the same conclusion, here are some qualities you should look for in selecting an accountant:

Small-Business Wisdom. Fit your accountant to the size of your firm. "An accountant who works in a large, corporate tax environment or in a large retail setting is not likely to help as much as one who specializes in small companies," says Dan R. Garner, the Dallas-based national director of entrepreneurial services at the accounting firm of Ernst & Young. Be sure that the accountant understands a company the size of yours.

Solid Foundation. Thomas P. Brock, of Brock, Buchholz & Stow, an accounting firm in Boulder, Colo., puts "depth of experience" before all else when judging a firm's competence. "The tax code is staggeringly complicated after more than 30 years of continuous complexities and change," Brock says, and thus the many-layered tax code presents problems that only the most astutely resourceful accountants can solve.

Garner says, "You can't expect one accountant to be all things to you." He suggests you hire a tax accountant who has colleagues who can be consulted.

Compatability. Begin your search by asking people in your industry for referrals. A certified public accountant won't catch the finer points of your rights as a taxpayer unless he or she knows your business or at least your industry.

Victor V. Coppola, national chairman of emerging-business services at the accounting firm of Coopers & Lybrand, stresses the importance of careful interviewing, as well as continued scrutiny once you hire someone. "They should be helping you learn your business. You should not be helping them," says Coppola.

Professional Standing. Edward A. Suarez, a Philadelphia-based national partner in marketing and business development with the accounting firm of Laventhol and Horwath, says an accountant's reputation in the financial community is crucial. If bankers believe what your accountant says about your company, you can benefit greatly, Suarez says.

Zoble says she consulted with two local chambers of commerce and her state association of women business owners about her accountant before hiring him.

Do a reference check with your banker, attorney, insurance broker, and your state or national trade association. Check your state's CPA society to make sure the accountant is in good standing and has undertaken continuing-education programs.