the odds are, it’s you! finance execs pass judgment on hiring, firing outside cpa firms.
by rick telberg
for the finance executive
who decides which cpa firm to hire? the chief tarot officer? the vice president of entrails interpretation? the directors of the ouija board?
so it seems, sometimes.
but according to more than half of the finance managers who have responded to our survey so far, the decision-makers are most likely to be corporate finance managers and executives. tied for a distant second place are company owners and boards of directors, each making the decision at about one quarter of companies.
that may be news to many cpa firms, where the vast majority believes that it’s the company owners who make the decision. as those firms go looking for new clients, or as they cling to the clients they’ve got, they’d do well to consider who makes the hiring decision, what they base their decision on, and why they decide to change firms.
maybe the alignment of the stars determines the mysterious drift of clients, but we don’t really think so. finance managers are a hugely influential factor.
jack henrie, who heads executive resources for great outcomes llc, in suffield, conn., probably speaks for a lot of busy presidents and ceos when he says, “small businesses want additional advisers, not just auditors.”
bruce r. ramer, controller and sole proprietor of choice books of northern virginia, tends to agree, saying, “they want an adviser that is more than a numbers cruncher or a tax return preparer. they want value added services?and they don’t mind paying for those services.”
jeffrey lauder, cfo of senior spectrum in augusta, maine, says he wants “auditors who are knowledgeable in our field, who can offer solid advice and keep us updated on any relevant changes in laws and regulations.”
frederick mertes, a cpa handling the finances of maryland’s newborn brothers co. inc. is looking for a lot. “communicate,” he said. “provide tax planning advice ? long-term advice. be more proactive in helping business grow and reduce costs. share industry information and cutting-edge tools.”
when financial managers tell us that “poor client service, attentiveness” is a reason to look for a new audit firm, it’s the cfo who’s looking for better service.
when financial officers say they looking for better prices, fees, costs, or budgets, it’s the cfo who’s weighing service against cost.
when financial officers says it’s a matter of “bad personal chemistry,” it’s probably the chemical mix with the cfo that auditors should keep their eye on.
to be sure, service and price rank with the reputation of the firm as reasons to choose one firm over another. but about half of the finance managers we’ve talked to so far also value a firm with a specific understanding of the their company’s industry.
when we ask these decision-level corporate accountants to tell us in their own words what clients really want and what cpa firms should be doing to satisfy clients, we hear a lot about sarbanes-oxley, returning phone calls, competent audit teams, good communication, and proactive consultation.
but it was small companies that were calling for something that had little to do with taxes and audits. they want cpas who know more than they do. they want advice.
the customer is speaking. who’s listening?
[first published by the aicpa]