An accountant is a vital part of the financial health of a business.
Thus, having a competent and responsible one is a must for any business.
Most of the time however, we tend to hire one hastily, or simply stick with what we know.
Thus, we end up with someone who doesn’t really understand the “ins and outs” of our business.
This of course, can be very dangerous, especially if they’re lazy, or don’t have the necessary background, skills or team required to work with your business.
Here are three things you want to watch out for with your accountant…
When Clients Do the “Drop-Off-the-Shoe-Box” Syndrome
We all know what the “shoe box” syndrome is…
Dropping off a shoebox of receipts to our accountant expecting them to know what’s deductible and what’s not.
However when an organization takes the shoebox approach with their accounting the detrimental effects can be much larger than a few missed deductions.
You need to ensure that the team managing the important metrics and figures of the business know the business inside and out.
Does your accountant come onsite and strive to understand your business from the ground up?
Do they constantly strive to guide you on how you can action certain data to reach your business goals?
Or do they simply provide a “cookie cut” accounting service for you?
Taking the old “shoe-box” approach to getting your financials sorted won’t be accepted if you’re working with true business accountants.
In order for an accounting team to really be of benefit to your business, they’ll be strict with you.
If you’re providing “shoebox” information to your accountant and they happily accept it without question, consider it a warning sign…
When Clients Assume the Accountant Knows Everything Going On In Their Business
Can your accountant tell you your businesses statement of value?
What about your businesses core values and goals?
Can they tell you about the product or service you provide with true insight?
They don’t know everything about your business just from looking at your financial data.
And if you’re not questioning your accountant about why they’re not being proactive about providing insight on how to achieve your business goals from the financial data they do have, you begin to wonder if they actually care about you and your business or just the invoices you pay them…
Your accountant should have a high knowledge of what’s going on in the business so they can help optimize and grow revenue.
So ask yourself some simple questions…
Does your accountant know the ins and out of your business?
Do they know what your revenue goals are and provide actionable insight on how to achieve them?
Do they probe you for information they need to do a better job?
If not, why not?
Perhaps it’s time to get answers…
When Clients Don’t Engage with their Accountant as a Proactive Advisor
You pay good money to your accountant.
Therefore you need to think of it as an investment.
Is your accountant using your company’s financial data to plan and strategize growth for the company?
Are they identifying key areas of the business that need to be addressed to help the business achieve its key performance indicators?
Or are they simply crunching numbers and keeping books balanced?
Your accountant should feel like an extension of your business.
Part of the team with the same focus and drive to succeed as you.
If you feel like they’re someone you just pay to make dealing with the businesses financials go away, you need to take a look at who you surround your business with.
These are just three signs you’ve got a lazy accountant.
Remember, commitment is a two-way street; if you want an accountant that is hardworking and has the heart for your business, then you should also show you’re willing to sit down and listen to what he/she has got to say.
Communication is key to your business’ financial matters.
And a good accountant won’t be shy about what they think you need to do to achieve your goals.