This is not the optimal relationship that you can have with your accountant or the way to get the most value. A good accountant can be worth their fee many times over, so here’s how you go about picking the right one and what you can do to optimise the relationship.
Choosing the right accountant:
1. Qualification, qualification, qualification: Make sure that you picked a qualified Chartered Accountant.
2. Size does matter: If you are a small business then choosing one of the big four accounting firms is probably not the best idea for you. A smaller firm may be able to give you a more personalised service and have a better understanding of the things that you face as a small business owner compared to a larger firm.
3. Personality plus: Be sure to meet with the accountant in person. It is important to find someone that you feel comfortable talking openly with and that you can rely on. While finding someone who meshes with your personality is important you also need to find someone who will push you.
4. More than just the numbers: Your accountant can be a critical factor in building your financial future. You need one that is not afraid to hold you to account and preferably will be able to offer you further business advice and not just comment on the numbers. You want someone who can assist you to change and grow those very numbers.
What can you do?
1. Be honest: Sometimes we make financial decisions that we are not proud of and have issues speaking about them; however for an accountant to do their job properly they must know the full picture of your finances so they can advise effectively. Be sure to let your accountant know about your spouse’s financial position also, even if they are getting their accounts done elsewhere as you are still legally entwined. Remember your accountant is not there to judge (and they have probably heard it all before); they are there to assist you to make better decisions in the future.
2. Be open to change and prepared to take action: All the good advice in the world is worth nothing if you aren’t prepared to accept the need to make changes and take action. Don’t get stuck in a never ending cycle of repeating what you have always done year after year. Do nothing and NOTHING will change. Remember “The power of an idea is in its implementation”.
3. Be prepared: As with most things the more prepared you are the better the results you will get. Get your information to your accountant as soon as possible, not just before the end of the year. The sooner you get your information in, generally, the better service that you will get in return, this is simply because your accountant has the time to focus on your accounts and give them the full attention that they deserve.
4. Give them notice: The same goes for giving notice, remember your accountants are often working on a lot of other clients’ accounts and even accountants with the best of intentions cannot always find the time to service you to the best of their abilities especially if you have dropped something on them at the last minute (and even more so towards the end of the tax year). If you want anything special done then give them as much notice as possible and avoid any disappointment.
5. Be sure to meet the person handling your accounts: Often the person you meet in the initial meeting is the director or one of the partners and is not necessarily the person that will be doing all the grunt work behind the scenes. Be sure to meet with the person who will be handling your account and work to establish an ongoing relationship with them.
6. Set your expectations up front: After meeting the person who will be doing the actual work on your accounts, it is very important that in the meeting with this person, to avoid possible future disappointment because of differing views, you set your expectations for the relationship up front with them. If all you want is your end of year tax return filed and nothing more then tell them that, and if you expect to have more regular contact and assistance then communicate this to them so that you both know what to expect from the beginning.
7. Make use of the other services they provide: Good firms don’t just provide assistance with filing your annual tax returns but can offer other golden advice in regards to planning your finances and helping you to grow your business. A good place to start that I think all businesses should have is a comprehensive business plan and budget so that you can plan your goals for the year and track your progress along the way.
The take home message today is that in order to get the most from your accountant you must find one that matches your expectations and needs and it is also as much about not only them being proactive but also you being proactive, and getting them the information as soon as you can. Remember what you put in you get out.
