Photo by Charles 🇵🇭 on Unsplash
If you’re not proficient in accounting, your accountant is an essential resource for your business to maximize efficiency.
Naturally, you want to control costs, prevent misuse of your assets, have good tax preparation and planning, as well as to increase your production and profit.
A good accountant will help you grow your business long term with valuable advice on elements for growth, cash flow patterns, financing, and will help you manage your inventory and pricing.
If you have unique needs, you might need an accountant and a business advisor for increasing profitability by improving your processes and staff.
To fill both roles, a great accountant will want to know your professional and personal situation to provide the services you need when you need it.
A caveat
Candidly, as a startup, I found it necessary to terminate accountants for poor service and lack of empathy for my business.
Two examples:
— In my first big year, despite my requests to hire an accountant on a monthly retainer when my startup business was growing quickly, she wasn’t available for timely service.
We didn’t even meet for a few times during year in person or on the phone to discuss my rapid growth. But I stayed with her and I was hit with a $14,000 tax surprise at the end of the year.
— Another seemed inclined to charge surprise bills. For instance, I wasn’t warned that the firm used an accounting system that wasn’t compatible with mine. This meant they had to manually enter voluminous data into their system resulting in a massive unnecessary charge that was in excess of my tax liability.
So ask questions: Look for an accounting firm that will return your calls and emails in a timely matter, has unique skills if you need full service, has the latest technology compatible with yours, and is upfront about the fees they charge.
To get the direction, support and confidence to achieve your goals, treat your accountant as you would a good customer.
Ask yourself, “What can I do to help my accountant?”
Why? Your accountant is probably harried at times and is pulled in several different directions by other clients.
Remember the Golden Rule: “Do unto others as you would have them do unto you.”
Tips to get the best service:
1. Get an agreement on a mutually convenient schedule
Chances are you don’t like negative surprises. Neither do accountants. Time literally means money to them.
So get an agreement on the schedule of work for providing your information, appointments and filing returns.
You’ll minimize the likelihood of negative surprises on your financial statements and tax returns.
2. Prepare before meeting
As you would a client or customer, ask questions. Have an agenda. Know in advance what data will be needed.
Use quality bookkeeping software that’s compatible with your accountant’s. Make certain your files are organized.
In this way, your meetings won’t be dealing with inane minutiae.
3. Follow directions
Heed all advice. For instance, if you’re told to make timely estimated tax payments, do so. Likewise, if you’re instructed to keep or record certain documents, do so.
Accountants don’t like to be ignored.
4. Treat your accountant as a partner
Trust is paramount. To get exemplary service, your accountant needs to know all salient details about you and your business.
That’s right. For all financial impacts, your accountant needs to know what’s happening in your professional and personal life.
In addition to your financial records, acknowledge all challenges or annoying financial situations you’re encountering. You’ll get a great sounding board.
Note: What goes around comes around – here are two examples:
— Once, I had a new big financial-institution client using my human-resources services, who had other consultants. To my horror, the client allowed his public-relations consultant to second-guess my HR work. It was very annoying as I was heavily experienced in journalism and HR. I mentioned the issue to my accountant.
My accountant instructed me to set my client straight – never allow myself to be second-guessed by another consultant.
So, I immediately researched the other consultant and determined he was not qualified to pass judgment on me. The next day I presented my client with a complete balance sheet comparing the experience of the other consultant with mine.
Guess what happened? The client listened and stopped the annoying behavior.
In addition, he began paying me within five minutes after I submitted my monthly invoice and he turned out to be my most-valued client for 20 years.
— When I shared the story with another client, he started listening to my recommendations and he also paid me immediately every month for more than 15 years. When it came time to part ways, he awarded me with a week’s stay in Hawaii as a thank you for my services.
5. Pay your accountant well
Yes, don’t marginalize your accountant about fees or the time your accountant spends on your affairs. Pay promptly.
Pay your accountant as well as you’d want to be paid. Make certain your accountant enjoys spending time with you. You’ll be treated well.
From the Coach’s Corner, here are more relevant tips:
Finance: You’ll Draw Strength to Win by Relying on 22 Values – Whenever a businessperson makes a financial decision that turns out to be productive, it’s based on values using a financial compass — knowing what to do and when to do it. If you use this financial compass with 22 values, you’ll be guided to financial success.
Finance: Zero-Based Budgeting Aligns Resources with Priorities – Zero-based budgeting (ZBB) is no longer just your average budgeting technique. ZBB means all expenses must justified for all functions and analyzed for company needs and costs. Here’s how to convert to ZBB.
Tips for Strategic Thinking in Finance: Your Staff, Individuals – Many companies want accountants and finance professionals who are strategic thinkers. But that’s not happening at most companies. Here are tips for managers and employees.
For Accuracy and Profits, 14 Small-Business Finance Tips – Being defensive is a key for you in small business finance – making sure your technology, bank accounts and bookkeeping are secure and in the best-possible shape.
Finance: 10 Vital Year-End Tips for Entrepreneurs – The holidays are a great time to assess your year and plan for the New Year. Like wellness checkups with your doctor, it’s a good time to evaluate your financials.
What’s the difference between an accountant and a lawyer? The accountant knows he’s boring.
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