Good financial information is crucial for the success of any business.
While cash flow is the lifeblood of the business, financial reporting is the pulse.
It goes without saying that having a good accountant is important to have a complete, comprehensive, accurate financial information.
If your financial information is all messed up, then that’s a tell-tale sign you need to change your accountant.
What other red flags should you look for?
Here are five more signs that should tell you your accountant is taking you for a ride.
You’re Getting Tax Surprises
You’ve finished the year and feeling good about your business’ accomplishments.
Your accountant on the other hand, hasn’t told you about the taxation consequences from your performance up until a few weeks before tax time.
Now you don’t have the cash to deal with it, and you spend the weeks leading up to tax season frantically trying to solve the problem.
This is why it’s important for accountants to be engaged with the business, especially in the last quarter of the financial year.
They should be asking you questions about your projected profit and most importantly, help you define your tax liability in the future.
If your accountant refuses to be engaged with you, then it’s time to move on and find a new one.
Their Fingers not on the Pulse
Many business owners actually have 70% to 90% of their personal net worth attached to their business, which is why knowing the monthly, weekly, and daily financial condition of your business is important.
However financial management is not something we all have time for.
Delegating this responsibility to outside accountants can be a scary thought for some business owners who like to keep things in house.
This is why you need to make sure the firm you hire to handle this has a proven track record.
For example, we provide a CFO service to clients where you can have all the benefits of a CFO without having to hire one.
But at the end of the day, it’s your money, and it pays to understand everything you can do to improve.
So if your accountant is not helping you achieve growth goals, then you have the wrong person.
You need to look into working with business accountants that treat your business like it’s their own.
They can do this by coming onsite regularly and making it easy for you to know what you need to address to not only make your life easier, but increase your profitability.
There’s Two Sets of Books
You may find this surprising, but this actually happens often.
Many companies have an in-house accounting system with a set of books, while the accountant has another one in his office.
As a consequence your internal accounts do not look anything like the accountants. It is the accountants figures the bank sees, and other agencies that request your figures, with your approval.
Good business accountants will set you up with tools and cloud systems to integrate everything so it’s accurate and available to the both of you at all times.
Such a cloud software that easily enables this is Xero. Xero is the software that Ambrosiussen The Business Accountants use for their clients.
The clients using Xero will always have their in house accounting system the same as their accountants.
Your Accountant Is Too Busy
We get it, accountants handle multiple clients.
However, this should not be an excuse for him/her to not talk to you.
A good accountant sets meetings regularly and is easy to reach out to.
He/she should return phone calls in a timely manner.
If yours doesn’t return your calls within 24 hours, start looking for a new one.
Receiving Unexpected Bills
Good professional accounting can be expensive, but it’s the price we should pay to keep our business and finances in good shape.
However, if you’re receiving unexpected bills with little to no explanation from your accountant about what work was done, then you should take it as a hint you could be being taken for a ride.
At the end of the day if you feel like you’re being taken advantage of or are not getting good value for what you’re paying, it may be time to upgrade to business accountants equipped to take your business to the next level while streamlining all your processes.
Although you may pay more for dedicated business accountants, the profitability they achieve for you is well worth it in the long run.
Not to mention the peace of mind knowing there won’t be any nasty surprises.
Contact us if you’d like advice on hiring a good business accounting firm.