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When selecting an accountant, it is important to search for one who will work well with either you or your company.
Some accountants focus exclusively on preparing tax returns for people or corporations operating within a specific sector, while others are highly knowledgeable in a specific aspect of tax law.
Introverted sensors, ISTJs are known as the best personality type for accounting jobs, CFO positions, or careers as auditors. This type is loyal, hardworking, and understands the importance of their roles; but the real predictor of success here is their analytical nature that enables them to work quickly and precisely.
How many of you are familiar with the abilities that are necessary to have a successful career in this field? In appearance, it may not appear to be the most glamorous career option that is available; but, if you look into it more closely, you might find that you are at the centre of the company and making important decisions.
It does not matter how large a firm eventually becomes; there will always be a requirement for an accounting department. It’s possible that this focus is on auditing, management, or something linked to taxes and finances. You will probably begin your professional life on either the commercial or the technical track, depending on your interests.
Each of the aforementioned aspects that have been emphasised below ought to serve as the foundation for your expectations, and an excellent accountant ought to be able to meet all of them.
It is not an unreasonable or unreasonable expectation at all. After all, getting this correctly could be the difference between your company surviving and collapsing under the weight of its financial obligations.
An accountant can be of great assistance to you in this area, particularly if you do not have a solid understanding of all of your tax requirements or the expectations placed on you and your company. A good accountant will begin their work well in advance of the end of your tax year in order to provide you with advice on how to organise your finances in the most tax-effective manner.
Your accountant should also be present to remind you of any deadlines, as was touched on briefly in the point that came before this one. While you are likely to be preoccupied with the day-to-day operations of your company, your accountant should take the initiative to ensure that you are aware of the requirements for financial reporting and the deadlines associated with them.
You shouldn’t always expect to get advice before you ask for it, and you shouldn’t expect to have to do so either. Your accountant ought to perform regular checks on your financial situation, keep an eye out for warning signs, and counsel you on how to optimise your cash flow whenever this is required.
They should be the ones to remind you about reporting and other crucial financial-related deadlines, rather than the other way around, so that you may concentrate on the day-to-day operations of your firm.
Waiting days only to receive an overview of their accounts or to acquire a report that would ordinarily take less than a minute to extract is the last thing that any business owner wants to do. In normal circumstances, this would take less than a minute. Stephen R. Covey, an influential figure in American business and a keynote speaker, is quoted as saying, “The answer is not in spending time, but in investing it.”
Communicating with your accountant should be easy and should not give the impression that time is being squandered. Instead, it should be viewed as an investment in which you should anticipate receiving something beneficial, valuable, and actionable in return.
You, as a customer, get the impression that your accountant ought to value you. And justifiably so. When you hire someone, you should anticipate that they will conduct their research and be familiar with all aspects of your company. This encompasses everything from being aware of what you do, how your company operates, and who your most important employees are.
When we discuss value in this context, it does not only mean ensuring that your bookkeeping is up to date, that your taxes are accurate, that you file annual reports, and that you provide payroll management. Despite the fact that these are very significant core services, the fact of the matter is that there are hundreds of accountants who are capable of providing the same service.
As a result, you should anticipate that your accountant will go above and beyond the call of duty and expand the range of services they provide to include, among other things, possibly advising you on a business plan, advising you on the legal structure of a company, helping you with loan applications, and so on.
Your accountant should be flexible
Rigidity is the single most effective way to stifle innovation, which, in the dynamic corporate environment of the 21st century, is a surefire way to bring about failure.
Accountants now have access to a wide variety of cutting-edge technologies that can automate a significant portion of the tedious and time-consuming tasks associated with the financial department. Your accountant need to be making use of them wherever it is appropriate to do so in order to bring about higher cost savings and efficiencies in the operations of your organisation.
Your accountant’s recommendations and guidance to you should also demonstrate a degree of adaptability. Because the industry in which you work is not a cookie-cutter one, the guidance that your accountant provides for you should take this into account. What is successful for one company may not be successful for you, and what was successful one month ago may not be applicable to your situation any longer this month.
Your accountant should have the foresight to know what strategies will work for your particular organisation in the particular industry that you work in and be able to adapt these strategies to achieve long-term growth. In addition, your accountant should be able to advise you on how to achieve growth in the short term.
Really, it couldn’t be any easier, could it? It is imperative that you communicate with your accountant, and they should make every attempt to answer your call, get back to you on the phone, or get in touch with you whenever the need arises. You should avoid making a compromise with somebody who is difficult or impossible to get in touch with.
Taking out a loan is a common requirement when launching a new company. If you have an accountant who is familiar with your current financial situation, they may be able to assist you in presenting the reason for the loan and in thinking through the various financing possibilities.
Accountants are able to assist business owners with the subsequent stage of the loan application process once the client’s demands have been validated.
Generally speaking, accountants assist their clients in compiling the information and facts essential for obtaining a loan. This assistance might range from measuring the client’s existing financial status and credit requirement to locating potential sources of repayment. Using this information, accountants are also able to collaborate with their customers to create attractive loan applications, which can increase the likelihood that a bank will grant the requested funding.
The reality is that cash flow is always the most important factor for any firm. As a customer, you have the right to expect to be advised and informed about the flow of cash through your company, as well as how you may make this process more efficient and, ultimately, how your company will benefit from this.
It is essential to minimise one’s tax liability in addition to maximising one’s financial gain. Your accountant ought to always be able to uncover ways for you to reduce your tax liability and should do so whenever possible.
Accountants stand a good chance of losing your business if you get the impression that you have been tricked or taken advantage of in any way. For this reason, they should always provide you with cost estimates on jobs or a cost limit, so that you aren’t caught off guard when an unexpectedly large bill arrives in the mail. Take a look at our pricing structure if you want more information on the prices that we charge.
In the same way that your accountant has to be aware of the current state of your company, they also need to be aware of your goals and objectives for the company. Do you wish to develop further? Or give it all up eventually? Your accountant ought to have answers to all of these questions in order to maintain a productive working relationship with you.
No matter how many people you have working for you, you should always expect to be treated with respect at all times. It shouldn’t make a difference how many people you employ. Your accountant should make it a goal to cultivate a connection with you through consistent and frequent communication, and they should be aware of who they should speak to regarding specific matters.
You can’t possibly be around all the time to respond to inquiries that, for instance, should have been sent into your book-keeper. Maintaining a relationship with a business owner and keeping open lines of communication are two of the most important responsibilities of a competent accountant.
If you are on the verge of entering into an agreement that may have potential ramifications for your taxes or your accounting practises, it is strongly recommended that you have the document evaluated by your accountant before you proceed with entering into the agreement.
Accountants are able to review the agreement and provide you with information regarding the tax and accounting repercussions that will have an impact on the financial prospects of either an individual or an organisation. Their perspectives are advantageous to their client in that they help the client avoid unfavourable consequences relating to cash management, financial planning, financial statements, and insurance. This is because their viewpoints assist the client in avoiding these issues.
Because your taxes may have an effect on your estate, you may wish to consult with an accountant in order to increase the likelihood that your hard-earned assets will be distributed to your heirs or to a charitable organisation rather than to the government.
It is possible for accountants to advise their clients on strategies that will allow them to leave assets to their children or grandchildren before they pass away, or strategies that will allow charitable organisations to benefit from the clients’ generosity while minimising any adverse tax effects. Customers are able to ensure that a greater amount of their assets are contributed to nonprofit organisations that work towards the common good with the assistance of these approaches.
Even though you’re probably an authority in your field, you might not be an expert in all areas, such as taxation or self-assessment.
No matter how unimportant it may appear, an accountant should be kind to all of your employees and happy to go over anything with you or them. Those who deal with all that financial jargon every day should have patience and respect for you.
A fine may be assessed for failure to comply with ever-changing legislation, laws, and regulations. A qualified accountant will not only keep you informed of impending legal changes, but will also be able to accurately predict how they will affect your company and how to effectively prepare for them.
One of the most significant changes to the business in 2018 was GDPR, with significant penalties for non-compliance. Given the sensitivity of the information your accountant has on you, you should anticipate that in addition to your own GDPR compliance measures, your accountant will also have their own in place.
Numerous accounting firms, especially those with smaller staffs, specialise in specific industries or business sizes. Therefore, the accountant who handled your personal taxes may not be the greatest choice to manage your corporation taxes, and the person who provided startup advice in its early stages may not be able to keep up if you go on a winning streak.
Find out the range and average business sizes your accountant works with. Knowing whether your accountant has the experience to develop with the company—or whether you’re too little a potato to attract attention—is crucial.
Your accountant, regardless of how skilled and knowledgeable she may be, can only do her job as well as the information she receives from you. It will be beneficial for her to ask for specific ways in which knowledge can be provided to her because you can help her improve by doing so.
The challenge here is to circumvent the obligatory paperwork that must be submitted to your accountant in order for your taxes to be processed. If you are missing something necessary for the preparation of your taxes, any professional accountant will let you know. However, if you want to improve your day-to-day routines and achieve more financial stability, you can benefit from gaining a better understanding of how to organise, document, and prepare your finances from the point of view of an accountant.
Whether or if a startup accountant gets it is among the first qualities to consider. Do they comprehend the startup world? Have they themselves started a business or worked there? They have highs and lows, right? Running a flower shop, a tyre fitting shop, or even a successful restaurant are not the same as working on a company.
Identifying the metrics that are relevant to you at this time is an excellent example. The typical accountant just doesn’t have that type of knowledge. Yes, it’s crucial to comprehend each line on your balance sheet or profit and loss statement. Will, however, the measures used by a conventional accountant give you a quick impression of how your firm is doing? Most likely not.
Is your accountant familiar with the measurements and jargon you need to run your technology startup? Various factors, including Monthly Recurring Revenue (MRR), Churn, Life Time Value (LTV), and Customer Acquisition Costs (CAC).
If your accountant doesn’t understand it, they might not be the best fit for you.
Your accountant is not, by any means, your insurance agent, and as such, he will not provide you advice regarding the degree of coverage that you should offer to your employees. However, he is able to provide you with assistance in evaluating the essential financial information that you will require in order to make sound decisions. For instance, are you aware of the number of people working full-time equivalent hours at your company? Although it is an essential number for complying with the regulations of the Affordable Care Act, it is not usually the same as your total workforce.
By working with your accountant to analyse and acquire a better understanding of your cash flow, you may be able to better plan how to incorporate insurance alternatives into your monthly budget.
Yes, a regular book-keeper or accountant can review your finances in the past and assist you with the fundamentals. A startup accountant with expertise in the trenches may offer you practical advice based on that knowledge. The scars from “fail and learn” that come with startup life are priceless.
The fact that your accountant will be aware of the necessity of gaining traction and raising venture capital to assist your growth is an additional benefit.
Ordinary accountants have trouble understanding the ideas of valuation and equity. You need an accountant for startups that not only understands this but is also knowledgeable enough to impart and teach “startup maths.”
You need someone who can guide you through the Australian grant and venture capital ecosystem when the time comes to raise funding. To increase your chances of success, be sure your accountant can provide you with the financial modelling and other capital-raising assistance services you need.
The management of payments, deductions, record-keeping, and other tax-related issues can constantly be improved. Taxes are an inevitable component of operating a corporation. You can get the information you need from your accountant, who is an expert in tax laws and their ongoing modifications.
Your accountant can help you with problems like:
Keeping a steady cash flow is one of the most significant challenges faced by proprietors of small businesses. A robust and growing small business will also require someone with this skill set.
Asking an accountant for assistance can help you gain a better understanding of your cash flow, pinpoint any problems or potential areas for improvement, and devise strategies for effectively managing it. Your company’s accountant may be able to recognise patterns in the company’s cash flow that you, as the business owner, may have missed.
Certain tax regulations are limited in their application to particular subsets of the economy, such as the transportation industry (freight tax), the hospitality industry (food tax), and the automotive industry (trade-in value tax).
There is a possibility that awards, subsidies, rules, and changes in compliance requirements that are specific to your industry will have a substantial impact on your company. You might be able to avoid having to pay taxes if you consult an accountant who is familiar with your industry.
Your accountant is an expert on taxes and financial matters and is familiar with your firm. Despite the fact that she is not your business coach or financial counsellor, she is a tax and financial expert. She is also adept at analysing and digesting the financial data that you collect on a daily basis.
When operating a small company, it’s easy to let yourself get distracted by the day-to-day operations and forget to make preparations for the future. Invest part of your time in carrying out such activities alongside your accountant.
There are compelling reasons to hire an accountant at various stages of your company’s development, such as when it is just starting out. An accountant can make your life easier at every step of the process, from formulating a business strategy to incorporating a company, from applying for a loan to being audited by the government.
This does not indicate that you are required to consistently retain the services of an accountant on a full-time or part-time basis. There are occasions when a few of hours of their time will be sufficient.
You could think that hiring an accountant is out of your price range, just like the other owners of small businesses who are looking for ways to cut costs. Consider, however, how much time it would take you to complete particular tasks (such as filing your taxes), and think about whether or not doing so would be a productive use of your time.
If you employ them to undertake time-consuming duties like filing taxes, it’s likely that an accountant will charge less per hour than you would if you do it yourself. You will not only have more time to spend to making money, but you will also feel more at rest knowing that a trained professional is handling the complexities of the situation.
DISCLAIMER
THIS WEBSITE IS NOT INTENDED TO PROVIDE PERSONAL FINANCIAL OR INVESTMENT ADVICE AND ONLY CONTAINS GENERAL ADVICE. ALSO, THERE IS A POSSIBILITY THAT THERE WILL BE REGULAR CHANGES IN THE LEGISLATION. BEFORE TAKING ACTION ON THE BASIS OF THIS INFORMATION, WE STRONGLY RECOMMEND THAT OUR FORMAL ADVICE BE OBTAINED FIRST. INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM SOURCES THAT EWM ACCOUNTANTS & BUSINESS ADVISORS BELIEVES ARE RELIABLE; HOWEVER, WE MAKE NO REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY OF SUCH INFORMATION AND ACCEPT NO LIABILITY IN CONNECTION THEREWITH. WE RECOMMEND THAT YOU CONSULT WITH A TAX ADVISOR, CPA, FINANCIAL ADVISOR, ATTORNEY, ACCOUNTANT, AND ANY OTHER PROFESSIONAL THAT CAN HELP YOU TO UNDERSTAND AND EVALUATE THE RISKS THAT ARE ASSOCIATED WITH ANY INVESTMENT.
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