Our Insights

The quality of service and advice you receive from your accountant directly influences your business’s financial success, growth potential, and longevity. For owners of family businesses, it’s not just about compliance—it’s about preserving your legacy, optimising your operations, and ensuring that your business thrives for future generations.  

 Ensuring you have the best possible accountant is not just important; it’s essential for safeguarding your business’s future. 

 Despite its importance, sticking with the same accounting firm for decades is common, especially for long-established family businesses. This is fine if your advisors are evolving and developing, but how do you know? In this article, we look at some of the reasons people often stick with the same advisors and present a structured approach to assess whether you might get better outcomes elsewhere. 

 Why Do Businesses Stick with the Same Advisors for Decades? 

Long-term Relationships 

Over time, a strong bond of trust is built with your advisor. They know your business, your family, and your financial history, which can create a sense of security and continuity. A longstanding relationship with an advisor often creates a perception that they are reliable and have your best interests in mind. If you haven’t experienced significant financial issues or compliance problems, you might assume that your accountant is doing everything right, even if there’s room for improvement. 

 Perception that Change is Disruptive 

Switching advisors can be seen as time-consuming and disruptive, especially when you consider the effort required to onboard a new firm and bring them up to speed on your business. Long-term relationships can foster a sense of loyalty that makes it difficult to consider other options. There may also be personal ties, particularly in family businesses, that make the idea of switching uncomfortable. 

 Not Knowing What You’re Missing 

If you’ve been with the same firm for decades, you might not be aware of the advances in accounting and advisory services. Technology, tax strategies, and business advisory practices have evolved significantly, and you may not be receiving the most modern solutions. Without comparing your current service to others, it’s hard to know if your accountant is delivering the best possible advice. This lack of benchmarking can lead to complacency. 

  

How Can I Assess the Performance of My Advisor? 

Assessing the performance of your current accounting firm requires a thorough evaluation of both their technical capabilities and the value they bring to your business. Here’s a structured approach to gather evidence on how well they are managing your affairs. Based on this assessment, you can decide whether it’s time to seek a new accounting firm or to address these concerns directly with your current provider. 

 Review of Past Performance 

• Accuracy and Compliance: Have there been any errors, late filings, or compliance issues in the past few years? Mistakes in tax filings, financial statements, or other compliance-related tasks are red flags. 

• Tax Savings and Strategies: Review past tax returns and look for evidence of proactive tax strategies. Are you utilising all available tax credits, deductions, and deferrals? If you feel your tax bills have been consistently high without strategies to mitigate them, this may be an area of concern. 

• Consistency of Advice: Has their advice led to consistent improvements in your financial situation? Look for any instances where you received conflicting or reactive advice that impacted your business negatively. 

 Proactivity and Strategic Insight 

• Proactive Recommendations: Reflect on whether your accountant has regularly suggested ways to optimise your business structure, save taxes, or plan for succession. If you always have to initiate these conversations, they may not be proactive enough. 

• Long-term Planning: Assess whether they have engaged in long-term strategic planning for your business. Have they helped you with financial forecasts, risk assessments, or scenario planning? If not, they may be more focused on compliance than on your business’s future growth. 

 Client Service and Communication 

• Accessibility: Consider how easy it is to reach your accountant. Are they available when you need them, or do you often experience delays in responses? Effective communication is crucial in a dynamic business environment. 

• Understanding of Your Business: Evaluate whether your accountant truly understands the nuances of your business and industry. Do they ask the right questions and tailor their advice to your specific needs, or does their advice seem generic and off-the-shelf? 

 Breadth of Advisory Services 

• Range of Services Offered: Reflect on whether they are providing the breadth of services you need. For example, are they offering advice on tax planning, business structuring, and succession planning? If you’ve had to seek additional advice from other professionals because of gaps in their service, this is a clear indicator that they may not be meeting your needs. 

• Business Structure Advice: Assess whether your current business structure is optimised for tax efficiency and succession planning. If your accountant hasn’t revisited this in years or hasn’t adapted it to your evolving business, this could be a concern. 

 Comparative Analysis 

• Benchmarking Against Peers: Talk to other business owners in your industry or network to compare the level of service and advice they receive from their accountants. If you find that your peers are getting more strategic value from their accountants, this is a signal that you may not be receiving the best service. 

• Market Competitiveness: Compare your accountant’s fees and services with those of other firms. Are you paying a competitive rate for the level of service you’re receiving? If their fees are high without delivering commensurate value, it may be time to reconsider the relationship. 

 Succession Planning 

• Long-term Succession Strategy: Reflect on whether your accountant has helped you put a robust succession plan in place, especially given your status as a family-owned business. If succession planning has been neglected or lacks depth, this is a critical area of weakness. 

 Overall Satisfaction and Trust 

• Your Gut Feeling: Finally, consider your overall satisfaction. Have you frequently felt the need to double-check their work, or do you trust their advice implicitly? Trust and confidence are fundamental in any professional relationship. If you find yourself questioning their decisions often, it may be a sign that the relationship is no longer serving your best interests. 

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 Thorntons is an accounting and advisory practice to mid-size, family-owned businesses in Western Australia. We offer a fully integrated portfolio of financial, tax, succession, and estate planning services and have the experience to guide you through the complexity so that you can enjoy stability, peace of mind and certainty. 

 To discuss your individual business needs and find out if we might be a fit for you, please contact Thorntons at tp@thorntons.biz or call (08) 9421 1722.