The relationship you have with your accountant is one of the most important that your business can have.
But first, let me start with some uncomfortable reading.
Your accountant, nice enough… Someone you see maybe once a year, who gives you a list of figures apparently telling you how your business did maybe more than one year ago. You don’t really see the relevance because that’s in the past and it’s all for the tax man anyway and to add insult to injury, it comes with an invoice. Or maybe worse, (s)he’ll tell you that you don’t owe anything to the tax man at all because you haven’t made a profit for another year running and it’s not because of some clever tax scheme. There’s a bit of good news. You are owed some tax free money. But it’s due from your business. And only because you keep having to pumping money into it. The bad news is that the business can’t pay you yet because there’s not enough cash, but that’s nothing that you didn’t already know. And there’s still that invoice to pay and it’s due now.
But it doesn’t have to be that way.
A good accountant is someone who is close to your business. They should know it (almost) as well as you do, warts and all. An unofficial business partner. One of the good guys.
A good accountant will keep in contact with you throughout the year. It’s a two way thing. Don’t wait for them to call you. Call them. Drop them an email and let them know how it’s going, good and bad. Even better, ask them about regular management accounts. One of our greatest pleasures is watching a business thrive with the wisdom acquired through regular and up to date information..
A good accountant will help you to see the wood for the trees. They can do this because they aren’t right inside your business, like you are. They are on the outside looking in. They will also help you to keep on top of current figures and without breaching confidentialities, share good and bad business practices, perhaps introduce you to something you hadn’t thought of, steer, discuss the pros and cons, decide & take action. Maybe they will help you to get some business finance or structure things differently so you pay less tax.
And you’ll do what you told yourself (and them) that you’d do, because you know it’s for the best. You’d be mad if you didn’t, because it was a calculated decision. And you’ll most likely be better off for it, either in the mind or the pocket or both.
Worried about additional contact costing more? Get yourself onto a fixed fee. Even better, pay for it over the year in monthly instalments, by direct debit. That way, you can focus on just getting the support you need, when you need it. They will soon tell you if something is going to cost more.
It goes without saying that a good accountant is usually qualified (look for FCA / ACA / FCCA / ACCA) and keeps abreast of changes in laws and regulations as well as compliance and best practice tricks of the trade like cloud based accounting and making tax digital. But it’s more than this. A good accountant is passionate about business, about maximising values (whatever yours may be) and if you are an owner managed small business person, may be the biggest asset your business has. Use them wisely!
I can put you in touch with my own excellent firm of Accountants. Click here to contact me and I’ll ensure you are well looked after.