How proactive is your accountant? If you usually speak with your accountant just once a year, make 2019 the year you build a relationship to receive more tailored advice. Your business will thank you for it. Here's a few things you should be asking your accountant.
Being an accountant isn’t just about rubber stamping financials at the end of the financial year. A good accountant will take a more proactive approach and aim to build a lasting relationship with their clients. It’s what we do here at Carbon. With regular touchpoints throughout the year, we get to know our clients and their business, which means we can tailor our advice accordingly. If your accountant isn’t so proactive, it’s time to take control and demand for more! Here, we’ve listed a few things you should be talking to your accountant about this year. Your business will thank you for it.
Cash flow is the lifeblood of any business. This is what pays all your running costs of the business. By not keeping track of your cash flow you may short run and in a lot of cases may be forced out of business. Cash flow issues you may wish to discuss with your accountant include:
- Reviewing your budget – are you spending too much in your business? Can these expenses be trimmed down any further?
- Collection policies – are there any other ways to collect money from my clients faster or easier?
- Pricing – are you charging a too much? Not enough? Do you know what your competitors are charging?
Are you trading out of the right structure
? There are different structures available to run a business from, each coming with their own pros and cons. Sole tradership, partnerships, trusts and companies. Having a chat to your accountant will ensure you are trading out of the entity that is more appropriate for your own affairs. Remember everyone is different so you must take into account your own personal circumstances. Just because your mate Jimmy is trading out of a company structure doesn’t mean this is the right structure for you!
Are you looking to expand/grow, or do you need funds
for a purchase or upcoming project? Maybe you are looking at buying a new van or motor vehicle for the business? Speaking with your accountant; they will be able to assist in giving you the best way to structure the finance you require. Your accountant will have a network of people they know who may be able to assist with obtaining this finance for you. These lenders will need a lot of information your accountant will be able to provide so in this instance, your accountant can help you in the application process.
Hopefully that’s given you an insight into the types of conversations you should be having with your accountant. Take the time to build a great relationship, and you should see the benefits in your business. If you need any assistance, our accountants
in Perth, Melbourne and Adelaide are just a phone call away.
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