Unsure what important questions to ask an accountant to maximise your time with them? Do you dread visiting your accountant and handing over your annual tax records? You’re not alone!
Building a solid relationship with your accountant can help you run your business more efficiently and avoid costly financial mistakes.
This guide will walk you through the important questions to ask an accountant to turn them into a valuable business ally.
5 IMPORTANT QUESTIONS TO ASK AN ACCOUNTANT
A great accountant should be more than just a defence against the tax department’s scrutiny. They can become a trusted advisor, a key player on your business team, and – dare we say it – a friend.
Beyond their expertise in taxes, your accountant can offer valuable insights to help grow your business, improve profitability, and manage your cash flow. Their role is to give you peace of mind so you can focus on what you do best: running your business.
But how do you tap into all that value? It starts with knowing the important questions to ask an accountant. Here are five essential questions every business owner should ask their accountant.
HOW IS MY BUSINESS REALLY PERFORMING?
Having enough cash to pay bills might seem like you’re doing well, but that’s not the full picture. To truly understand your business’s financial health, ask your accountant:
Do I have enough cash flow?
It’s crucial to know how quickly cash is coming in and going out. Accountants often say, “Cash should arrive quickly but leave slowly.” Ask your accountant to explain your cash flow and identify areas for improvement.
Am I being properly rewarded for my efforts?
Many entrepreneurs start businesses to make money, yet they often overlook their own compensation. Your accountant can help ensure you’re being paid fairly for your hard work.
How can I increase profits?
Your accountant has a wealth of tips and insights on how to boost your bottom line. Ask for their advice on where you can make adjustments to improve profitability.
Am I up to date with my tax obligations?
A good accountant will ensure your tax filings are in order and advise you on the best practices to avoid penalties. They’ll also help you prepare for potential audits by making sure your records can withstand scrutiny.
These are some of the most important questions to ask an accountant when assessing your business’s performance.
AM I ON TRACK TO ACHIEVE MY BUSINESS GOALS?
Setting measurable goals is essential for any business. For example, if your goal is to hit $100,000 in revenue by year’s end, your accountant can help track your progress and suggest ways to stay on course. They can also advise on:
- How to grow your business profitably
- Where you can reduce costs to increase efficiency
- Whether you’re hitting your financial milestones
Regularly reviewing your goals with your accountant will help keep your business on the right path. Knowing the important questions to ask an accountant about your goals will help you get the guidance you need.
WHAT’S THE BEST STRATEGY FOR GROWING MY BUSINESS?
Growth is essential for long-term business success, but it’s important to pursue the right kind of growth. Your accountant can help you identify the difference between good growth (which boosts profitability) and bad growth (which could overextend your resources).
Some key areas to consider:
- Total cost of hiring employees: Before bringing on new team members, understand their true cost, which includes more than just salaries. Your accountant can help you factor in things like contributions to retirement plans, equipment, and training expenses.
- When to upgrade equipment: Outdated equipment can slow your business down. Your accountant can advise on the best time to invest in new assets and help you take advantage of any tax breaks available for capital expenditures.
If you’re looking to expand your business, asking the right questions of your accountant will help ensure your growth is strategic and sustainable.
RELATED ARTICLE: Are You on Track?
WHERE CAN I CUT COSTS WITHOUT HARMING MY BUSINESS?
Running a lean operation is critical, but it’s easy to get attached to certain assets, like vehicles, office spaces, or even employees. Regularly reviewing your expenses with your accountant can help you spot areas where you can cut costs without negatively affecting your business.
For example, are you paying for software subscriptions you no longer use?
Your accountant can help you identify these hidden expenses and free up cash for more important investments. Knowing which cost-saving questions to ask an accountant can make a big difference to your bottom line.
IS THERE ANYTHING I AM OVERLOOKING?
Sometimes, you need an outside perspective to identify opportunities for improvement. Your accountant can offer a fresh set of eyes on your entire financial operation.
From managing debtors to optimising payroll, their expertise can help you refine your processes and save time and money.
Don’t hesitate to ask for their advice on any aspect of your business where you feel uncertain. Chances are, they’ve seen it before and can offer a solution. This is why asking important questions to your accountant is key to unlocking their full value.
CONCLUSION – IMPORTANT QUESTIONS TO ASK AN ACCOUNTANT
Your accountant should be seen as an investment, not just an expense. Their knowledge and advice can help you grow your business, improve your financial health, and avoid costly mistakes.
The more informed and proactive you are in asking the important questions, the better equipped they’ll be to support you.
Remember, the quality of the answers you receive often depends on the quality of the questions you ask. Use these five important questions to ask an accountant as a starting point, and watch your relationship with your accountant – and your business – thrive.
If you’d like to discuss how we can help optimise your financial strategy, feel free to get in touch with us today.
