As a business owner, having an experienced and reliable accountant is critical for your success. However, not all accountant-client relationships are a good fit or stand the test of time.

If you notice any of these signs, it may be time to consider switching to a new accountant who is a better match for your current business needs:

1. They’re Always Behind on Your Tax Returns

If your accountant regularly filed your business and personal tax returns late with extensions, it creates unnecessary stress and puts you at risk for penalties and interest charges from the IRS and state tax authorities. This vital task should be a top priority.

Tardiness signs it’s time for a change:

– Repeatedly needs filing extensions due to being over capacity.
– Sends your returns days before or on the due date.
– You get stuck paying large extension penalties.

Getting your taxes done early can help uncover savings or issues so they’re resolved ahead of time before filing. It’s too risky to wait until the last minute.

2. Lack of Availability and Responsiveness

You depend on your accountant’s expertise and accessibility, but:

Do you experience any of these availability issues:

– Hard to reach during tax season with questions.
– Doesn’t promptly return voicemails and emails.
– You don’t have a point of contact when your accountant is out.
– Takes days or weeks to hear back on a time-sensitive matter.

Their limited availability can negatively impact your business decisions and progress. You need them in your corner as a trusted advisor. Ensure you have direct access to a new accountant when you need them.

3. You Don’t Understand the Advice They Give

Sure, accounting is complicated. But a great accountant also simplifies complex terms and explains financial concepts in everyday language you’re familiar with.

Signs your accountant falls short on communication:

– You’re uncomfortable asking follow-up questions about their recommendations because they seem annoyed or talk over your head.
– You frequently walk away more confused after your meetings and calls.
– They present data and analysis without explaining the why behind it.

To make smart moves for your company, you need to comprehend the guidance they share. The ideal accountant blends their financial expertise with strong communication suited to your knowledge level.

4. Lack of Proactiveness and Strategic Insights

Managing taxes and compliance are table stakes. You also want an accountant who gets deeply involved, asks thoughtful questions about your goals, and takes a more consultative role.

Your expectations likely aren’t being met if your accountant:

– Only handles compliance, bookkeeping and preparing returns without big picture planning.
– Doesn’t dig deeper into the meaning behind your numbers and ratios.
– Isn’t introducing you to strategic money-saving tax and accounting practices.

As your trusted advisor, your accountant should go beyond data entry and reporting to advise how to structure your finances in ways that fuel growth. If you notice a reactive versus proactive approach, make a switch.

5. Poor Performance and Errors

Mistakes happen. But if an accountant regularly makes errors that result in fines or overpayments, it becomes a liability.

Some warning signs:

– Gets your tax returns wrong year after year leading to you owing penalties and back taxes.
– Doesn’t carefully review your previous returns and documents before preparing current years taxes leading them to miss changes.
– Makes frequent recording and classification errors on financial statements.
– Overlooks easy tax deductions and credits you qualify for.

Continually discovering such issues eats up your time and energy to fix and costs you hard-earned money. Pay for performance: if your accountant regularly underdelivers, consider replacing them.

6. Lack Industry Expertise with Scaling Businesses

Early on, a general accountant gives you a solid start. But as you grow, your financial needs evolve quickly across issues like international expansion, secured lending, acquisitions, etc. If your accountant mainly works with simpler small business tax prep, they likely can’t provide guidance at the next level you need.

Signs they fall short for a scaling company:

– You outgrow their capacity and capabilities as your company rapidly expands.
– They seem unsure, oversimplifies or discourages strategic steps on financing, global growth and other evolving areas.
– You spend extra hours explaining basics about your maturing business model and niche that an expert would grasp quicker.

Seeking an accounting firm or pro accountant that specializes in high-growth and midsize companies in your niche helps align the financial strategies to propel forward momentum.

Next Steps After Identifying the Signs

If several signs your accountant isn’t the right fit anymore resonate, take action now before the disconnect widens. Document specific ways their services fall short or no longer sustain your business goals. Then seek recommendations from your network, check peer reviews, and interview several qualified accountants to compare expertise.

With an attentive accountant tailored to growing organizations in your industry, you regain the strategic guidance, responsiveness and understanding needed to make confident decisions. The extra time invested upfront to find the ideal accounting partner pays dividends for years as your business flourishes.