One of the things clients often ask me when we first meet is whether I am familiar with their particular industry. Even if I am familiar with their business, I inform them that this is not the most important consideration in a client/CPA relationship. The most important part of this symbiotic relationship is the ability to communicate. CPAs are not generally known for being the best communicators, and sometimes clients are equally challenged. This is an obstacle that must be minimized for mutual success.
As far as being familiar with a specific industry, it does have some benefits, including a shorter learning curve. However, I find that people within an industry and with the same background and training do things in completely different ways and with completely different outcomes. It is of much greater assistance if the CPA has the flexibility to come in without other clients’ expectations on how to assist influencing their behavior. If the CPA is not familiar with your specific industry, they will be coming in with no preconceived notions and should be asking a lot of questions, many of the same questions as those who already know your industry.
As a small, or not so small, business owner, your success has been and will continue to be based upon your ability to make decisions. When hiring a CPA, do you want someone who will be challenging your decisions or a yes person who simply agrees with your choices without analysis? I am always surprised to find out how many businesses are looking for a simple nodding head. I disagree with my clients from time to time and, based on their standings, we go back and forth and generally settle for a position that is defendable before the IRS. If you have a domineering personality and choose a yes person, you may be setting yourself up for difficulties in the future. You should be looking for someone to challenge you and bring out the best in your business.
Are you comfortable or is your staff comfortable picking up the phone or e-mailing/texting a question to your CPA? If you are not comfortable, this is a matter of grave concern. There should never be hesitation in getting an answer to a question or information from your CPA. If cost is a concern, this should be addressed as quickly and early as possible. You need to have the best resources available to run your business successfully.
Decision making works best when there is a group of advisors to assist in the process, and your CPA should be a part of this group. The best decisions are not made in a vacuum. Your CPA should be a member of your team, who is available, open, and easy to communicate with. The goal is the success of your business.