Is your accountant proactive or reactive?
Do they provide strategic advice?
The research into what business owners want from their accountants would indicate that accountants are viewed as reactive and unable to provide business planning and strategic advice. So that’s why I say don’t take business advice from your accountant. If your accountant is not someone that can give you proactive strategic advice, go and find an adviser that can!
So is this article just about bagging accountants? Not at all! It’s about focusing on the real value that they bring. If you’re really savvy you’re using a great cloud-based product like Xero and after some back and forward you’re finally presented with a nicely bound set of financial statements and tax returns. The accountant probably has a quick run through the numbers with you and points out any highlights, exceptions or areas of concern well as explaining your taxation position. Does it leave you feeling a little underwhelmed?
How can I really understand my numbers?
Perhaps, but you should be excited! As a result of understanding and using the basic annual compliance product, you are now able to:
- Make better and more informed management decisions
- Appease financiers
- Get more capital
- Value your business
- Sell your business Improve the profit of your business
- Use it as a basis for cash flow management
- Have peace of mind that your affairs are in order
- Increase your wealth
- Improve your lifestyle
What should I ask my accountant?
Gee, that is an amazing amount of value out of a seemingly “low-value” product. If your accountant can help you understand how you can use this “product” or what results can be achieved by implementing it, you will walk out the door much happier and you should be delighted to pay for such a valuable service.
So simply ask the questions. Ask if you can have more tax planning advice, help with cash management and forecasting and putting together better business analytics. Any good accountant should have the skills to help with these tasks and they can add great value to your business.
But do understand that if your accountant doesn’t have the skill set, experience or time to help you work on your business, look for someone that can add that strategic thinking to your business.
