How to Choose an Accountant

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The first thing lawyers should do in deciding how to address accounting issues is to think about wants and needs.

That way you know what you’re looking for before you start looking for an accountant, said William Hess, a shareholder with Wausau law firm Hess, Dexter, Reinertson & Brunner.

As a lawyer for 38 years, Hess has specialized in business-related law, offering tax and estate planning services.

As a member of the Wisconsin Association of Legal Administrators, part of a national organization that helps lawyers manage their practices, Hess has advised lawyers looking for those same financial services for their firms.

What Are You Looking For?

The process should start with a few questions.

“Do a personal inventory. What kind of advice do I want? What kind of help am I looking for?” Hess said.

The answers should dictate the kind of financial professional you pursue.

If you need a bookkeeper, you should hire an accountant, someone with a two-year technical or four-year university degree who can work part-time or when needed to handle billing.

If you want a financial advisor, someone to help guide your business financially or offer tax advice, Hess suggested a certified public accountant, or CPA.

Many businesses use both, with the accountant handling day-to-day operations, while the CPA steps in for tax preparation and financial advice. Many firms contract for the services rather than taking them on as in-house staff.

Not that every law firm needs an accountant. At least not all the time.

Hess strongly urged lawyers to have their firms’ taxes professionally prepared.

Otherwise, for many firms, accounting software is enough for the day-to-day operations.

“There are so many computer-based solutions available that almost any size firm can economically do their own work, particularly when they combine their time and billing with an accounting program,” Hess said.

Ask Your Peers

For those who choose to use an accountant beyond tax preparation, Hess said finding a candidate is a lot like finding a lawyer.

“Talk to your peers. See who they’re using. Get recommendations. That’s really the best way,” he said.

Listserves can be a resource, as well as Practice 411, a law firm management assistance tool offered by the State Bar of Wisconsin.

Once you get down to a few people, interview them. About 30 minutes should be enough time to gauge an accountant’s business philosophy and decide whether that accountant could be a good match for you and your business.

“You want to have a person who listens, who is into finding out how you run your business as opposed to giving you stock advice,” Hess said.

Don’t underestimate gut feelings. But, Hess said, make sure to also explore concrete factors, such as experience.

Law firm experience is a plus, but background with any professional — dentists, doctors, engineers — can make an accountant a good fit for a law firm. Experience preparing tax returns for professionals is a big plus.

Good financial advisors also have experience with accounting software. That way they can suggest computer programs that might enhance business management. Most accountants also use software to generate reports.

Reference Question

When interviewing a potential accountant, as with any employee, Hess suggested getting references. Once you have them, make sure you talk to them.

The questions don’t have to be complicated.

“Tell me why you feel that this person was good to work with. What makes this person someone you have confidence in as a professional advisor? Why have you continued the working relationship?” Hess suggested.

As with any business venture, lawyers looking for financial help should watch for potential pitfalls.

In this case, advisors strongly suggest passing on anyone who thinks skirting tax responsibilities is the best way to further a business.

“You’re not looking for someone who wants you to evade taxes. You want to minimize your taxes, but you want to do it legally,” Hess said.

As for how to integrate an account professional into your business, firm size should dictate when the relationship should evolve from a contracted position to part of the staff.

For those looking for part-time help keeping the books, Hess said you should expect to pay between $15 and $20 an hour. If the person supplies their own equipment or works outside your office, you might pay more.

Counsel from a CPA could run between $150 and $300 an hour.

“Just like attorneys,” Hess said.

All but the biggest firms can function well by contracting for those financial services, Hess said.

Whatever path you choose, Hess said finding what is best for the firm really comes down to knowing what you want to accomplish.

“It goes back to need,” Hess said.