Many of us are getting ready to take some annual leave soon or are just back from a well-earned rest. If you’re a business owner, this opportunity is usually the time when you’ve had a chance reflect on what’s going right or what needs to change in your business.
You may be looking to change your accountant and these are two common complaints we hear from new clients regarding the service they had from their previous accountant:
Perceived indifference
Poor communication
Perceived indifference
A good accountancy practice should offer a service that saves money, optimises taxes, and improves your financial processes. If they’re not providing advice (without your prompting) or you feel you’re behind on the latest tax law changes, it might be time to switch.
Poor communication
The obvious indication that your present accountant doesn’t value your custom is poor communication whether that means they are hard to reach, take too long to respond, or fail to explain things clearly. Effective communication is crucial for a successful working relationship and without it, can lead to misunderstanding and mistakes.
Our guide to what an accountancy practice should be offering
Any accountant worth their salt should be looking to help you add significant value to your business. It’s our role to anticipate needs, identify opportunities and address potential issues before they become problems.
We’ve put together this list of activities that a good accountancy firm should be offering clients (compiled by us and what our new clients have fed back to us).
If you’re not getting the service you deserve, perhaps now is the time to change?
Regular financial reviews
Does your current accountant offer services that include frequent financial health checks on your business? Could they be reviewing your financial statements, cash flow, and key performance indicators on a regular basis? This service enables them to spot trends, identify areas that may prove to be issues later as well as offer timely advice.
If you’re looking to move accountant, you may be interested to hear that we are advocates of year round tax planning. Rather than focus on your tax situation around the filing season, we offer a service that suggests strategies throughout the year that can minimise your tax liability.
Forecasting and budgeting
Does the current service you receive include detailed and tailored financial forecasts? If they’re provided on a regular basis and kept updated, you can prepare for future scenarios and so manage cash flow more effectively. It allows you to set realistic business goals - in line with your objectives - and help with budgeting. We offer a range of service options - all geared around the specific requirements of the business owners we work with.
Industry-specific advice
How informed is your current accountant? Do they understand the industry in which you operate? It’s crucial that they keep up to speed with any changes and can advise you based on industry knowledge and insight. Some business owners are looking for accountants who can benchmark them against their competitors - does your existing accountant offer this as a service?
Tax efficient strategies
A good accountant can identify tax saving opportunities and also help you plan and execute major purchases or investments. Timing is everything and you may need a steer in how to structure an investment in order to maximise tax benefits.
Technology integration
Something very close to our hearts is technology integration. We don’t think it’s an exaggeration to say that we really are Xero experts. We’ve had some nightmare stories shared with us whereby it’s the accountant and not the client who has caused issues due to inaccuracies, deadlines missed and would you believe, using Xero incorrectly! If a business owner has a gut feel that things aren’t right - their instinct is usually spot on.
Our focus is to utilise the latest software to streamline accounting processes, automate routine tasks, and provide clients with real-time financial data. It’s crucial to use the right tools to maintain efficiency and if you can’t see the latest snapshot of your financial situation, you’re missing a trick!
Risk management
Running a business is a 24/7 responsibility. As the business owner, you may be excellent at spotting business opportunities but perhaps not the financial skills to identify a potential risk. Accountants should be able to assess potential financial risks to your business, e.g. cash flow issues, debt levels, or regulatory changes, and suggest strategies to mitigate these risks. Sound financial management is the bedrock of any successful business and partnering with the right accountant who can assist you with this will reduce your stress levels should there be any likelihood of potential penalties associated with tax audits or compliance checks.
Customised reporting
Are you getting the reports you need to run your business effectively?
If you aren’t, it’s time to move on and find an accountant who offers this service. As a forward thinking business owner aiming to boost your business, you should be getting customised and regular financial reports that focus on those metrics that will help you make informed decisions. If you are not getting this information on a timely basis, you may not be in a position to respond to a key and defining moment.
Strategic business advice
In whatever form it takes, no business should be staying still - growth opportunities need to be identified and evaluated and a good accountant should offer a range of services that set you on a path for growth. Can your existing accountant support you in looking for new markets, acquisitions, or product lines, as well as advise on the financial implications?
Equally, when the time comes to bow out whether that is through retirement or a desire to sell your business, can your accountant assist you with long term planning? Do they offer services that include succession planning for business continuity or devising exit strategies?
Personal financial planning
Following from point 8, it’s important that you’re aware of the importance of integrating personal and business finances. Good accountants will help you optimise both your personal and business finances by considering how one impacts the other, offering advice on retirement planning, estate planning, or investment strategies. If your accountant isn’t regularly on hand to discuss any changes in your business or personal circumstances - they should be.
Continuous learning and development
This last point should be a given but we’ve listed it anyway. Your accountant should always be up to date with changes in tax laws, accounting standards, and financial regulations. Compliance is fundamental to the financial health, legal standing, and long-term success of a business.
Don’t be afraid of asking your accountant how they invest in their own professional development so they remain at the forefront of the accounting field. This will give you added comfort, knowing this will benefit you and your business.
Summary
If your accountant adopts the practices as detailed above, you have nothing to worry about. If they don’t, your business is merely using the services of a number cruncher. What it really needs is a valuable advisor and partner in your business's success.
If you're thinking about moving accountants, why not get in touch and find out what we can do for you? Let's sit down and talk and devise a plan that works for you and your business.
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