One who has your best interests at heart and the objectivity and drive to see your goals to fruition – no matter what it takes.
As a business owner you have so many tasks to juggle that compliance obligations (taxation, superannuation, ASIC etc) can easily be neglected, thereby increasing the risk of higher costs and penalties.
Increasingly, smart business owners consider their accountant as a business partner and expect them to provide the added value of astute, proactive advice about prospects for the business, now and in the future.
Not only does this demonstrate the business acumen of the accountant but more importantly, it demonstrates dedication to your success.
Such accountants don’t wait to be asked for this advice, but offer it proactively and consistently.
That is why they become a vital member of your management team. Your accountant must understand all the implications of being in business – including every process and challenge both strategic and financial.
An understanding of accounting and/or taxation matters only is no longer sufficient. So how do you find an accountant like this?
Credible people recommend credible people!
Ask for referrals from those you know well and trust. If you have enjoyed or observed exemplary performance from any of your peers, clients, suppliers and service providers ask them who they use.
Don’t just ask an accountant what they can do - ask what they have done!
Where possible choose an accountant that has dealt with businesses like yours – they can bring that experience to you confidently and quickly.
Choose an accountant who shows a genuine interest in your business. For example, the accountant should be willing to visit your premises from time to time. How else can they understand what you do and what you really need?
Make sure they are able and willing to provide service to you as required throughout the year. Don’t just leave it until after the year end. It may well be too late by then.
Choose a qualified and experienced accountant. The more senior and experienced your accountant is, the better able they are to provide the strategic support you need.
Can you relate to your accountant on a personal level? Do you talk the same language?
There are many accounting practices that really offer only a basic bookkeeping and income tax preparation service. Unless you have access to other advisors, this type of accountant is probably not ideal.
Do you need to use a large accounting firm? Bigger is not always better !! Find the right person and everything else will fall into place – whether a sole practitioner or from one of the largest firms.
A good pro-active sole practitioner will have a team of specialist advisors to call on in the same way as the large firms.
Don’t use your external accountant as a bookkeeper – they are very expensive bookkeepers! Too many accounting practices continue to perform services at very high rates that should be done either in-house by the client or by 3rd party bookkeepers.
Don’t accept fee accounts without adequate detail. Ask for a summary of people, dates, times and rates.
Where practical, negotiate a fixed annual fee and offer to pay it monthly. This saves lots of arguments and also saves time at both ends. One off tasks can always be quoted/estimated separately.
Never fear to call your accountant for advice. It is easier and cheaper to avoid the mistake rather than pay your accountant to fix it.
How long does your accountant take to return your phone calls?
How long after you have provided all your information to your accountant do you receive your completed tax return, activity statement, financial statements or other business critical documentation?
Your accountant should provide you with regular copies of ATO and ASIC reports so that you know that everything is in order. While you can check with the ATO and ASIC yourself, you should not have to do this; if you must check, perhaps ask why your accountant isn’t doing it.
Don’t just accept everything your accountant tells you – ask challenging questions and ensure you are satisfied with the answers.
If you are unsure ask around and seek a second opinion. Accountants are human (so they say) and they make mistakes and sometimes do the wrong thing.
You will be surprised at how many really bad accountants are out there causing havoc for unsuspecting business owners. If you feel that you need to change accountant, don’t procrastinate and wait until next year. Do it now?
Graeme Beveridge heads up Complete Business Solutions. Visit www.controlyourbusiness.com.au
