3 questions to help you check
Whenever I’m out and about, once people know I’m an accountant, they often ask what else their accountant should be doing for their business. While it would be easy to reel of a list of things, the best way to answer is usually with another question.
What does your accountant DO for your business?
Often their accountants are providing tax advice – all well and good. But that’s sometimes all they’re doing. Utilising the services of a good accountant and business advisory can offer business owners so much more.
Often accountants go into their profession because they have a way with numbers and analysis (and that’s where some people leave the conversation). They can see things that others can’t see – in just the same way that a great graphic designer views the world as a series of pictures, a writer uses language full of colour or an entrepreneur sees opportunities on every corner.
In terms of understanding your business’ past performance they could tell you;
- Where you’re making the most money (or margin). Hint – sometimes it’s not where you think
- Where the holes in your cash flow are and how to plug as many as possible
- Where you can you schedule better or tighten up your billables
- About opportunities or issues you might be overlooking that can make a real difference in your business
The next question is;
Do they know where you are going in your business?
If not, why not? A business accountant shouldn’t just look into the past; they should be forward looking as well. Some accountants call that part of their business an advisory service.
Once you’ve got an idea of what you want from your business, your accountant should work with you to highlight and prevent stumbling blocks along the way.
Then they can point out any shortcuts that might get you where you’re going that bit quicker.
If you’re not clear on where your business is heading, a good accountant can advise you. Many business owners are exceptionally skilled technicians or practitioners but they dread strategy. Often this is an area of strength with the added bonus that your accountant can look at your plan with a more objective view.
Do they make your life easier?
Not just in terms of accounting, but across the board. They’ll likely to be able to help with;
- Which is the best financing, insurance or banking set up for your business and personal circumstances
- Better training you in your accounting/bookkeeping package
- When the best time to buy something is. For example, if you’re buying a car in your business and you can wait until July 1, 2012 there’s an automatic additional $5000 tax-break (link to an accounting definitions page). Purchase on June 30 and you’ll miss out.
- Analysis along the lines of if this happens, what then?
- Putting controls in place to ensure that your bills and income are paid in an appropriate manner
- Having the right business structure in place to ensure that you’re assets are protected and you’re not paying more tax than necessary
- Scalability and your choice of business model
I’d love to hear how your accountant has helped your business. Feel free to share in the comments below. Or connect to me or Greg on LinkedIn.
Til next time.
Kerry