Gone are the days when an accountant’s primary job was to balance the books.
In the fast-paced world of a global economy, accountants are no-longer considered number crunchers. Instead they are finding themselves thrown into the role of “silent partners” in their client’s business, helping to manage growth, learning about tax brackets overseas, and even helping clients go public.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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“This business has changed so dramatically,” said John S. Renza, a managing partner at Kahn, Litwin, Renza & Co. Ltd on Hope Street in Providence. “Today it’s like you are a shareholder in these companies without owning any stock. You take that approach and clients feel that you both working towards the same successful goals.”
Joe Cannon, owner of CAS America, an East Greenwich based manufacturer said the right accountant is like “another arm” of the company.
“As a small company, it is most practical to outsource accounting services,” he said. “I look for an accountant to be an integral part of the business – to have as much involvement and knowledge as possible in the business.” For Cannon, who has had only two different accountants in his company’s 16-year history, that kind of relationship is built over time.
“When I want to make a major decision about the future of my business, this person needs to be able to advise me,” Cannon said. “It’s difficult for a person outside of the business, who doesn’t know much about the business to advise me. My accountant needs to know my history, to help with my future.”
Renza agreed that accountants have become almost like a “one-stop resource” for companies.
“People tend to look to accountants today as more things to more people,” he said. “They are looking at accountants as the sole resource for business advice. They are looking into things like technology assistance, financial planning assistance, investment advice, and they want their accountants to be able to provide them with the information.”
This idea is being echoed throughout the entire accounting community. A recent study conducted by the American Institute of Certified Public Accountants’ (AICPA)found that “traditional skills are being replaced by technology and that business in the 21st century requires individuals with broad skills and extraordinary agility.”
Patrick J. Canning, principal partner at KPMG, the state’s largest accounting firm located in Providence, said as a result of the changing industry, finding an accountant that can specifically meet the needs of individual companies is a top priority.
“Any size company can benefit from using an independent accountant,” he said. “I think as our clients are becoming more global, as more companies are doing business around the world it’s important to find an accountant that can handle those needs.”
For instance, he said different countries worldwide have specific tax structures and regulatory issues that accountants need to be aware of for their clients.
The need for knowledge in a wide variety of topics has also forced many firms to diversify and designate certain specialties.
“We have a division of technology, a small business division and many more,” Renza said. “Each of these divisions are designed to help clients. It’s all about the relationships.”
Canning said his company has expertise in multiple industries including consumer products, health care and technology.
“We work with companies from start-ups to multi-million dollar (companies),” he said.
But both Canning and Renza agree aside from the technology, and changing marketplace a good accountant must still have some of the more traditional qualities.
“Accountants must still have the ability to communicate with people.” Renza said. “They must have the ability to write well. There is a wide berth of knowledge you have to have. You are in a business dealing with people and the days of getting an accountant who just did data entry are long gone.”
