Founders; here you go.

Some truths:

a.    Firms sell services that really should be done in house – but early-stage firms cannot afford to hire at this point.

b.    In the absence of quality, founders optimise for fees.

c.    As the market optimises for fees; accountants optimise for volume.

d.    Quality of accounting and advice is only assessable in hindsight; founder is not always skilled in matters that they are being advised on – worse still – some accountants have never worked with companies in your industry before. Blind leading the blind.

Fear not, for I bring you a comprehensive blueprint to choose the right firm, who can lead you to entrepreneurial triumph. 💡💪

1. Treat the relationship like an investment not a cost: Focus on selecting the Firm that can support you through your entire business plan – not one that will tap out when you outgrow them or when you ask them a tax question that they’ve never come across before. 🌟💼
2. Choose a team that clearly articulates what they DON’T do, as well as what they do do: When fees are the only currency being measured by the Firm, it is not hard to predict that they aren’t typically incentivised to refuse work….even if they shouldn’t be the ones doing it. The best firms are entirely comfortable with refusing work and recommending a vetted partner to assist you with your needs.💯✍️
3. You’re tight on cash; does the firm offer to teach you how to do things yourself? As technology advances, the better accounting firms are not focussed, at all, on profiting from simple tasks that are admin tasks disguised as ‘book-keeping’. You might still choose to outsource this but has the firm been honest about your ability to not need to? 📈💻
4. Be honest with yourself about what services you need: Entrepreneurs must grasp the various services early-stage accountants provide. We'll categorize them into

• Housekeeping services
• Value-added services, and
• Specialist services.

By understanding the differences and aligning them with your business goals, you'll gain clarity on your requirements. However, DON’T get a firm selling house-keeping services, to do specialist work and DON’T expect firms with specialist functions to charge house-keeping fees. As a founder, running a business, you’re smart enough to know this is pointless 📊💰

5. Learn how to mentally categorise different Types of Accounting Firms: Personally, I see three categories:

1. Generalists
2. Specialists and
3. Large firms

They all have their place, and those places are not interchangeable. E.g. if I just needed my rental accounts prepared, I might opt to use the local firm. Similarly, if I am about to prepare for an IPO, I might use a Big 6 firm – but if I am going through a very specific VC backed, high-growth journey, I’d opt to work with a specialist team. 🏢🔎

6. The Science of Fit: You’ve heard of Product Market Fit – now get comfortable with Advisor Founder Fit; apply this across all your advisor stack. However, just like basic PMF teaches you to give the customer what they want, even if it makes you uncomfortable – AFF teaches you to do as the specialist advisors advises you, even if it makes you uncomfortable 🧩💼

7. #Empathy: Entrepreneurship can be a lonely journey, and the advisors you choose should be a pillar of support. Empathy becomes the distinguishing factor that transcends business cards and brands. This is a non-negotiable trait in your early-stage firm (ignore 1-6 if needed) 💚🤝

8. Paying for Value, Not Services: Refer to Point 1: Like any investment; Pay the right fee for the right advisor as opposed to the wrong fee for the wrong advisor.

No-one ever used cheap foundations to build their family home 💸💡

You’re welcome.