CFR R)) EU-REPARIS is funded
Centr forFinacialby the European Union
Cepont formnca and is a part of WB EDIF
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WORLD BANK GROUP
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CHOOSING A FINANCIAL ADVISOR OR ACCOUNTANT
FOR YOUR SME
Banks need reliable, transparentfinancial information  be best placed to have an advisory role, supporting
when making credit decisions. A financial advisor  you and your business to develop and grow into
or accountant can advise you on when it could be  the future.
advantageous to seek out a bank, and help you
calculate, compile, and present your information  Often, SMEs choose a financial advisor or
to banks.                                    accountant based on the price of their services or
a recommendation from an acquaintance, without
But not all accountants and financial advisors have  much consideration. Given the important role they
equal skills. Some accountants focus exclusively on  can have, it is important to choose wisely.
bookkeeping or tax; these professionals may not


6 QUESTIONS TO KEEP IN MIND
fl Do they have the necessary credentials?
In Serbia, there is an Association of Accountants  international institutions. These qualifications can
and a Chamber of Auditors. Ask your potential  give you an indication of whetherthe accountant
candidate if they are a member of one of these  or financial advisor you want to recruit, has a
and/or have other qualifications, from national or  reasonable level of education and training.
2J What is their client base and their industry expertise?
Ask the potential accountant if they have  Also, if yourgoal isto growand expand,you may
experience in your sector or industry. While this  want to ask them if they have clients of the size
expertise is not always necessary, it could be  profile you aim to achieve (in terms of revenue
important to help them understand the unique  and number of employees, for example). If they
needs of your business. For example, if you are  do, it's a good sign as you'll knowthey should be
an export-oriented manufacturing company,  able to handle your growing needs over time.
and the potential accountant has only worked  Ask them about how their clients have grown
for service-oriented companies focused on the and developed over the years, to get a sense of
domestic market, they might not be up-to-date  whether they'll be able to handle the evolving
on the necessary laws, rules, and business issues  needs of your company.
that are relevant to your company.
2I What kind of work do they do for their clients?
If their work focuses on book-keeping and  you save moneyand manage yourfinances.They
preparing annual financial statements to satisfy  should be able to help you to identify financing
legal obligations, it is likely that they are not  needs, and advise on the most common financial
accustomed to working as a true financial advisor.  solutions that are available in the marketthat can
Afinancial advisor will be more proactive, helping  suit your needs.
2I Do they have enough time for you?
If they have a lot of clients and a very small  theydismissyourquestionsasnotimportant,this
team, it is unlikely they will. One test is to see  could be an indication thattheyare eitherunable
if the potential accountant responds to your  or unwilling to give you the financial advice you
questions in a reasonable amount of time, and  need.
in a satisfactory manner. If they seem rushed, or if


How important is face-to-face interaction to you?
In the past, your accountant had to be based  connection, youraccountantwould be anywhere.
near you, preferably in the same city. Nowadays,  You can find someone who really understands
this is no longer a requirement, as technology  your business, regardless of where they are
allows companies and accountants to work  based.
together over the internet, sharing information
and holding "meetings" over skype and similar  On the other hand, if you want face-to-face
means.                                   contact and/or want someone who's able to go
to business meetings with you, you will want to
The decision on where your accountant should  find an accountantthat is physically located near
be located depends on what you feel most  you or willing to come to you from time to time.
comfortable with. If you have a good internet
6I What software do they use?
Do you use accounting software? Is the potential of your highly sensitive financial information
accountant familiar with it? If not, this can be a  being accessed by a third party. Financial data
problem since sharing data securely could  should be encrypted, so that even if a third party
become an issue. E-mail is not a secure way of  accesses it, they will not be able to read it and it
transmitting data, which means that if you're  will not make sense to them.
communicating this way, there's also the risk
SUMMING UP
C   O   N   SID      ER                      Approach choosing an accountant or financial
advisor as you would hiring an important employee
in your company. Get a few recommendations, and
interview them. Ask them for a few references of
existing clients, and call them. Doesthe prospective
IN   V   ESTM           EN     T             advisor do similar types of work for these clients?
How satisfied are they with the work they have done?
Are they mostly oriented around bookkeeping, or
are they more proactive, giving financial advice and
guidance?
While everyonewantsto save money,consideragood  Having a competent financial advisor can be an
accountant or financial advisor as an investment in  important asset to your company, since their work
your company. Be careful about choosing an advisor can have a direct impact on how your company will
based on price. Good accountants can help your  be perceived by the bank: as either more or less
company grow, by managing complex financial work reliable and trustworthy. So choose wisely!
and offering advice on practical business issues.This
can save you money in the short and long term.


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