Are you paying for the hiring and training?
I had a meeting this morning with a business consultant from a networking group. During the meeting we were discussing who my competition truly is for clients.
He classifies CPA’s into three categories. The first is the big guys that charge too much to be effective for the small to mid sized companies. The second group is the old dogs that look to minimize costs and don’t necessarily keep up to date with the new laws, the technology and are coasting, basically historians. The final class of CPA’s where he is categorizing me. He views these CPA’s as those who look to be partners with their clients as part of their management team, try to keep up on the ever changing knowledge and technology needs.
But I digress. Back to the business consultant, he has a specialty in manufacturing and transportation, and has worked for years with companies to form his opinions on CPA’s. He believes that the midsized CPA firms mistreat their smaller clients by using them as a training ground for new employees. One the employees get experience they are moved to the larger clients and the smaller clients get another newbie to work on their books and records.
Earlier this year I interviewed with a potential client who that felt that this had happened to him. He had a new person working with him monthly from time to time; occasionally the prior CPA would return. He also felt that his invoices were being increased to help pay for a new employee as well. I believe he has stayed with the original firm. A possible mistake I think we would have been a better fit, but maybe next year.
A couple of months ago I picked up a new client who has difficulties with their prior CPA. A low level employee came out quarterly and made a number of transactions. But by year end the head CPA came in and edited all of those entries entered by the underling, undid inventory adjustment made by management to match the actual inventory counts, and pushed through all sorts of other odd entries.
This is not how we work. We do our best to make sure that client know who will be working on their books. Now, I attempt to be involved with all of the clients, so if there is any question I will be able to make a judgment call if one is needed.
Are you comfortable with how your current CPA firm is working with your company? Are you paying for their employee training and hiring costs? If you are not completely satisfied give my office a call, we are always looking for new clients to team up with to assist in meeting their goals.