CPAs, Enrolled Agents, Accountants…What’s the Difference?

I've met plenty of CPAs, enrolled agents and accountants who almost brag about how efficient their businesses are. They sit back during tax season while their clients file through one after another, passing the work on to lower level preparers, who then hand it back to them to sign off on and give back to the client after completing the work. My thought has always been with these types of people, "Where's the relationship?" There's no way I'm going to spend any time or money investing in a relationship with these types of tax professionals regardless of the letters after their name. Because when they tell their clients they can help with other areas of planning, the clients aren't going to give them the time of day. Why should they? There's no real relationship being built.

Contrast this approach with the CPAs, enrolled agents and accountants that I personally work with (I work with all three). Each of them knows their clients on a first-name basis and personally reviews and plans with their clients every year face to face. They take the time to answer all of their clients' questions and help them navigate all the complexities of the tax planning world. 

These are the types of professionals you want to form alliances with. When my tax partners tell their clients about the value-added planning services available through the relationship they have with my firm, their clients are all ears because they have a great relationship of trust in that professional.

Do an Interview

So how do you know ahead of time what kinds of relationships other professionals have with their clients? One of the best ways I know is to actually interview them, asking them yourself. This must be done carefully, of course, so they don't just tell you what they think you want to hear. Instead, casually ask questions like, "How do you uniquely serve your clients, and what does an ideal client relationship look like?" Depending on the answers I get, many times I'll take it to the next level by asking for five to 10 of their current clients that  can interview over the phone. I do this because the tax planner's view of the relationship and the client's perspective can often be very different.

Without fail though, I know I will hear tax planners tell me about how much they care for their clients, and how they go out of their way to service them and meet their evolving needs. Then when I hear the client echo this in how they describe the level of care they receive, I know it's true. These relationships have always proven to be the most successful alliances. 

While some of this may seem like common sense, I've coached a number of advisors who have tried forming relationships with tax planners without much success. And when I ask them what their initial interview process was like when they were forming the relationship, I usually get a blank stare. 

Successfully forming alliances with other professionals takes careful thought, planning and strategy, all of which I look forward to sharing with you over the course of the year. 

Next week, we'll discuss some of the pros and cons of working with attorneys. Again, we'll look at the relationship model most have with their clients and how to factor this into your approach and overall strategy. In the meantime, if you'd like a copy of my first interview questionnaire I use with each new potential alliance I'm considering, send me an email at [email protected] and I'll be happy to send it to you. You can also visit our website at www.WinningWithCPAs.com for more information.