Our Insights

As the leader of a mid-size, multi-generational family business, you’ve likely built enduring relationships that have spanned decades—none more steadfast than the one with your accounting firm. But with the evolving demands of the modern business landscape, you might find yourself questioning whether your long-standing advisors are still the best fit for your businesses needs and whether it is time to reassess the relationship and look at alternate arrangements.  

 When evaluating new accounting and advisory firms, it’s essential to ask questions that assess their expertise, service approach, and experience with businesses and business challenges that resemble your own. By carefully considering these factors, you’ll be better positioned to select a firm that can support your business’s growth, protect your legacy, and help you navigate the complexities of a multi-generational family business. 

 Here’s a checklist of questions that might be useful to guide your discussions: 

 Expertise and Specialisation 

Look for firms with experience in your industry. A firm that understands the nuances of running a family business can offer more tailored advice and strategies. Ensure that the firm has expertise in the specific areas you need, such as proactive tax planning, business structuring, and succession planning. Ask for examples of how they’ve helped other clients with similar needs. We have assembled a quick checklist below: 

 Key Questions to Ask When Switching Accounting Firms 

• What experience do you have working with multi-generational family businesses?  

• How many current clients do you have that are similar in size and industry to my business? 

• In your experience, what are the unique challenges that family businesses face and what do you feel that you can bring to the table that other firms might not? 

• What factors do you look for when deciding whether you are the right fit for a prospective client? 

• How do you approach balancing the needs of the business with family dynamics in your advisory work? 

• Can you provide examples of how you’ve helped similar businesses navigate complex financial and family issues? 

• What specific services do you offer beyond compliance, such as tax advisory, wealth management, and succession planning? 

• Do you have specialists in-house, or do you collaborate with external experts for more complex issues? 

 Proactive Approach 

The firm should offer more than just reactive, compliance-based services. Look for accountants who actively bring ideas to the table, whether it’s for tax efficiency, optimising your business structure, or planning for the future. Proactive firms regularly check in, offer timely advice, and update you on regulatory changes that could affect your business. 

 Essential Questions to Assess Your Accountant’s Proactive Approach 

• How do you stay proactive in identifying opportunities and risks for your clients? Can you give examples of how you’ve done this for other businesses? 

• How often do you reach out to clients with new ideas or recommendations, rather than waiting for them to come to you? 

• Can you give examples of how you’ve proactively helped clients with tax planning, business restructuring, or succession planning? 

• How often do you review a client’s business structure, and what triggers you to suggest changes? 

• What is your experience with succession planning for multi-generational family businesses? How do you balance family dynamics with business needs? 

 Communications 

The firm should have a management and communication model that is consistent with your expectations. Evaluate how the firm plans to communicate with you and how they stay engaged with your business. Make sure their approach aligns with how you prefer to work.  

 Questions to Ask Before Hiring an Accounting Firm: Communication, Accessibility, and Teamwork 

• Who will be my primary point of contact? What is their background and experience, and how accessible will they be? 

• How do you typically communicate with clients? What is your preferred method for staying in touch and how often will we meet? 

• What is your preferred work style? Do you take a collaborative approach, or are you more directive? 

• Will you be the only person working on my account, or will I have a dedicated team? How do you ensure consistency and quality across your team? 

• How frequently can I expect updates and check-ins from your team? 

• How do you ensure continuity if my key contact is unavailable or leaves the firm? 

 Technology and Innovation 

The accounting firm should utilise up-to-date technology, such as cloud-based accounting systems, data analytics, and automation. These tools can improve efficiency, provide real-time financial insights, and help you make better decisions. Look for a firm that is forward-thinking and stays ahead of industry trends. They should be able to advise you on innovations that could impact your business, such as changes in tax laws, financial technology, or industry best practices. 

 How the Right Accounting Technologies Can Transform Your Business: Critical Questions to Ask 

• What accounting and advisory technologies do you use, and how will they benefit my business? 

• How do you incorporate technology into your service delivery, such as cloud-based accounting systems or data analytics? 

• Can you provide examples of how you’ve helped clients adopt new technologies to improve efficiency or gain strategic insights? 

 Flexibility and Scalability 

Choose a firm that can scale its services as your business grows or changes. They should be flexible enough to adjust their approach as your needs evolve, whether it’s through expansion, new ventures, or succession. The firm should be able to provide customised advice that fits your unique situation, rather than offering a one-size-fits-all approach. 

 Essential Questions to Ask an Accounting Firm About Scaling and Supporting Your Growing Mid-Size Business 

• How do you tailor your services to the specific needs of mid-size businesses, and how flexible are you in adjusting your approach as our needs evolve? 

• What experience do you have supporting businesses through growth phases, acquisitions, or other significant changes? 

• Can you scale your services as our business expands or contracts, and what does that look like in practice? 

 Reputation and Stability 

Research the firm’s reputation in the industry. Look for reviews, testimonials, and any recognition they’ve received. A strong reputation is often an indicator of reliability and quality service. Assess the stability of the firm itself. You want an advisor who will be around for the long term, so consider their financial health, leadership, and ability to retain top talent. 

 Questions to Evaluate an Accounting Firm’s Stability, Experience, and Expertise in Navigating Economic Uncertainty 

• How long has your firm been in business, and what is your track record with clients similar to me? 

• How do you ensure the stability and continuity of your firm, particularly in times of economic uncertainty?  

• How do you ensure your team’s skills stay up to date with the latest developments in tax law, business strategy, and family business management? 

 Cost and Value 

Understand the firm’s fee structure and how it aligns with the value they provide. While cost is important, focus on the return on investment—are they helping you save on taxes, improve profitability, or plan for the future effectively? Ensure that the firm is transparent about fees and that there are no hidden costs. Clear communication about costs helps avoid surprises and ensures you’re getting value for money. 

 Must-Ask Questions to Ensure Transparency, Value, and ROI from Your Accounting Firm 

• Can you provide a clear breakdown of your fees? 

• How do you ensure transparency in your billing, and are there any potential hidden costs? 

• Can you provide examples of cost savings or revenue growth you have helped clients with?  

• Can you provide examples where your advice led to significant financial or strategic benefits for your clients?  

 Succession and Continuity within the Firm 

Ensure the firm has a plan for continuity in their own business. This is important because you don’t want to lose the relationship or expertise if key people leave. Look for firms with strong succession plans for their own teams. 

 Crucial Questions to Ask About Succession Planning and Continuity in Your Accounting Firm 

• What succession plans do you have in place for your own key team members? 

• How do you ensure that my business will continue to receive high-quality service if there are changes within your firm? 

• How do you handle transitions when key contacts or partners leave the firm or retire? 

 Onboarding 

Assessing a firm’s experience and capability in onboarding new clients is crucial to ensure a smooth transition and effective integration into their services.  

 Questions to Ask About a Seamless Onboarding Process When Switching Accounting Firms 

• Can you walk me through your onboarding process for new clients? 

• How do you ensure a smooth transition from our current accounting firm to your services? 

• What are some common concerns new clients have during onboarding, and how do you address them? 

• Can you provide a detailed timeline or checklist of what to expect during the onboarding process? 

• What happens if there are delays or issues during the onboarding process? How do you handle them? 

 Track Record and References 

Ask for references or case studies that demonstrate the firm’s ability to deliver on the services you need. Specifically, look for stories from other family-owned businesses that align with your situation. 

 Check the firm’s track record in building long-term relationships. A firm that has successfully guided other businesses through multiple generations or major transitions is a good sign. 

 Can you provide references or case studies that demonstrate your success in helping family-owned businesses? 

 ——— 

 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.