Tax Tips
Dy
Irving L.
Blackman
Choosing an accountant
Want to get a business owner's
atte ntion? Tell him you can show him
how to make more money. How do
you keep score in business? With
money. Winners get it. Losers don't .
Every successful business owner I
have ever met has at least one of these
skills: He has the magic touch of
knowing how to prime and work the
cash flow money-pump or he knows
how to hire the right person to do it for
him. That person usually is a CPA.
In the client-CPA-let's-get-together
derby , it 's almost like boy meets girl.
There are so many , but how do you
meet the right one? Someday there
may be a client-CPA matchmaker.
Until then, this article will help you find
the right accounting firm for you .
Start your search with leads. Ask
any of the following to refer an
ac countant to you : other business
owners, particularly other amusement
operators; your banker, lawyer, or
other professional consultants ; or
your state CPA society or trade asso-
ciation . Seminars are another source.
Next , organize your task. You
mus t ask and get answers to 12 key
questions , which I have divided into
three categories : basic-must ques-
tions , narrowing-the-gap questions ,
and final -decision questions.
Before explaining the questions ,
let's set some ground rules . You must,
I repeat MUST, ask each potential
new accountant the same questions.
Take notes. Evaluate his response
against what the other candidates say.
The n check his answers with two or
more of his clients, preferably clients
who are in the coin-op industry.
Basic-must questions
1. Do you render timely service ,
and how?
Ask when you can expect to
re ceive your tax return , financial
statements , employee profit-sharing
or pension-plan data , and other infor-
mation your accountant prepares.
PLAY METER. December 1. 1985
Identify each item. Get specific or
approximate dates.
To conquer the timeliness pro-
blem, many firms have embraced the
portable computer. Goodbye green
eyeshades, hello high -tech . Whether it
is monthly write-up work or a full -
blown annual audit , your accountant
brings his portable computer and
printer to your office . New informa-
tion and adjustments are added to a
pre-entered data base. All of the old
pencil-pushing and number-crunching
is now done by entry into the com-
puter. Then a press of the button pro-
duces all your financial statements on
the spot , including balance sheet,
income statements , and cash flow;
compared to last year or your budget;
complete with percentages and ratios
that apply to your operation; and
everything else you and your accoun-
tant can create to help you get useful
and timely information to help you run
your business better.
2. Will the same people work on
our account every year?
Nothing is more frustrating to a
business owner than educating new
accountants every year . Turnover is
inevitable, but your best bet is an
accounting firm with a policy that key
staff people will not be pulled off of
your job as long as they stay with the
firm. Also , new staff should be trained
by the firm , not by you .
3. Will you give us personal atten-
tion?
Remember, the better your accoun -
tant , the more you and his other
clients put demands on his time . Yes ,
he's busy. But your accountant should
know how to delegate and have sup-
port staff. Ask for an explanation of
how he operates, so you know he will
be available when you need him. Get
the same explanation for staff people.
4. Can you develop a rapport with
him , and how does he communicate?
This question leads to a number of
others, depending on how you want to
develop a relationship. Do you like
and respect him? Does he talk your
language? Do you understand his
technical explanation? Will you take
his advice? Make your own list of
questions in this area. If you don't get a
good feeling from the answers, keep
on looking.
5. Does he know your industry?
As complexity in business mush -
rooms, specialization becomes more
important. Every business has its own
quirks, subtleties, and nuances; not
knowing them puts your accountant
and, ultimately, you at a disadvantage .
When possible, find someone who
writes to or lectures to your industry
group. Short of that, a long client list in
your business or similar industries is a
good measure of expertise.
6. Does he have the technical
knowledge and imagination you need?
Technical knowledge - whether in
taxes, auditing, or some other disci-
pline needed in your business- is a
must. Pass any firm that does not
measure up. And what about using
that technical knowle'd ge creatively?
Ask the candidate for examples of
how he has used his imagination to
solve problems and make his clients
money. For example, does he side
with the IRS or does he create money-
saving tax plans that sidestep the IRS
legally?
Narrowing-the-gap questions
7. What is your range of services?
Your real job here is to think
through your short-range and long-
range objectives, both business and
personal. Write them down . Then find
out if the candidate can help you meet
these objectives. Does he have in-
house talent or must he use an outside
consultant? Here is a list to help you
get started :
• Can he install a pension or
profit-sharing plan and administer it?
• Does he know how to structure
an acquisition or a merger?
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