Why now might be the right time to change your accountant

Changing your accountant might not be the first thing on your mind during the summer. We get it, there are BBQs to go to, vacations to take, and life to live. That said, it also makes for a surprisingly good time to change your accountant – if that’s been something you’ve given thought to recently. So why change? Great question.

What are the signs you need a new accountant?

We actually covered this topic recently in a blog post that you can read here, but let’s summarize some of those ideas for the purpose of clarity. Generally, we see a lot of folks looking for new accountants in May and June because tax season didn’t go the way they planned. Typically, that might mean that they were hit with a surprise tax bill and they weren’t prepared for it. 

That, or maybe they’re nervous that they’ve heard zero in regards to how their current accountant plans to deal with the current year’s taxes. In SOME cases we’ve even seen cases where it’s June and the previous year’s taxes STILL aren’t filed. Stress-inducing, for sure! The short version: if it feels like there’s no plan for your taxes, you don’t have good communication, and you’re stressed – it might be time to change your accountant. 

Why people don’t change their accountant (when they probably should)

Look, we understand. Many of the relationships that accountants and their clients make don’t only exist on the professional level. These are real people that you create personal bonds with. Most of the time they’ve been working with you for a long period of time. Even beyond the personal reasons, you’ve gotten used to it.

Sure the old processes and routines might not be great – but they’re familiar. You don’t like change, it gives you heartburn when you think about learning a new system. Here’s the thing: that attitude is costing you SO MUCH money. And the alternative? Well, it isn’t really that bad. Most good CPA firms (yes, ours included) have extensive onboarding processes. Trust us, they want you to succeed. 

The final reason? Price. It’s usually a big cost jump, especially if you’re going from an annual accountant to a monthly one. Some small businesses struggle with paying that fee. That said, you get what you pay for. 

A high-value service like monthly accounting might be a little pricey at first, but you’ll see the value within the first few months of working with them. 

Is there a recession coming?

One thing is for sure: the economic market is very opinionated right now. Some people think we’re going to have another 2008 financial crisis. In our opinion, we aren’t going to necessarily have that recession – but there will be a tightening. We won’t live in a huge world of surplus like we have for the last few years.

As a business owner, this represents a great time to make a shift so that you can streamline your systems and save money where you can. You’ll need to make decisions on how to cut costs or plan for non-growth if the markets become stagnant. You’ll also want the opportunity to maximize growth opportunities by having a good plan in place. 

If you are only working with your accountant once-per-year, you will struggle to identify where to manage costs during a difficult time. If you do not have numbers month-to-month, then you may make the wrong decisions on where to cut costs or miss opportunities to improve your revenues. Ignoring the data to make these decisions could have you jumping over dollars to save pennies.

The benefits of switching accountants now

Sure, you could wait, but is it better to switch accountants now? We think so, for a few reasons. Later in the year means less time for planning. Most onboarding processes take between 30 and 90 days, meaning that you won’t be totally in-sync with your new CPA firm until nearly October. That represents a big milestone in the year, as October 1st is a deadline to create a retirement plan for your business.

If you change during tax season, you’ll need an extension which means things can get messy. It’s much harder to work on the prior year taxes while creating a plan for this year! If an accountant has to clean them up, they’ll be cleaning up your old files WHILE they’re creating processes for your new ones. That’s a recipe for a bumpy road. 

Finally, if you switch now, you’ll have your accountant’s undivided attention. Most accountants don’t have as high of demand in the summer months, which means that they’ll place you at the front of their line. That’s an invaluable way to start that relationship. Are YOU ready to switch? Today might be the day. Find out with a complimentary discovery call – let's talk!