Is you accountant proactive or reactive?
Do they provide strategic advice?
The research into what business owners want from their accountant 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 just about bagging accountants? Not all, its about focusing on the real value that they bring. It’s that time again, and the new financial year has just ticked over and now business owners’ attention turns to getting their “stuff” ready for the accountant. You drop of your MYOB data file and associated mountains of paper or if you’re really savvy you’re on a great cloud product likes 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 figures with you and points out any highlights, exceptions or areas of concern as well as explaining your taxation position. Does it leave you feeling a little underwhelmed?
Perhaps, but you should be excited! As a result of understanding and using the basic annual compliance product you’re 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
Gee, that is an amazing amount of value out of a seemingly “valueless” 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 that 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 you 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.
Enjoy the new financial year and I hope that 2014/15 will be your most successful year yet.
