After many years of asking my clients for legal documents, I now simply ask them (actually beg them) to give their attorney permission to speak to me and provide any documents I request. On many occasions I have had clients tell me some detail about their company, only to read the legal documents and find something different. I have seen companies follow the right steps in documenting a particular transaction or agreement, and then fail to tell their accountant about it leading to incorrect financial statements or even worse, incorrect IRS reporting.
Accountants and attorneys actually have a lot in common. They are both very detail oriented – usually more detail oriented than a CEO. They both like to keep their clients out of trouble. They both like to anticipate future problems with the goal of preventing them. Finally, they both like to use big words like “assignment” and “depreciation”. They are truly a match made in heaven.
Attorneys help accountants understand corporate structure, deal structure, and contract arrangements so that they can properly account for transactions and produce accurate financial statements
Accountants help attorneys by helping CEOs adhere to the legal agreements they have created and recommend they consult with the attorney when issues arise.
If your accountant, financial manager, or whoever is handling your financial function is not asking to see legal documents and have access to your attorney, it is time to make a change.
I could give you some specific examples where accountants and attorneys need to be working together but that would defeat the point of this article. The point is to make sure they talk to each other on their own and you just work on running your business.
Imagine standing on a chair and falling backwards into your accountants arms. Could they catch you by themselves? (They might break your fall.) Imagine the same thing with your attorney. Now imaging your accountant and attorney facing each other, holding each others hands ready to catch you when you need them. That’s how they should be working together.
Posted by efaservices 
