22 Mar Is Your Accountant Meeting All Your Tax Needs?
Many company owners will agree that finding a good accountant is fundamental to the success of your business. Without this type of expert help, you will have to collate all of your business tax financials yourself and spend extra time at work when the EOFY draws near.
I am sure that you can think of better ways to spend your time than drowning in your financials, particularly when an accountant can do the job for you. The problem is finding a good tax accountant, one that you can work with, feel comfortable with and who knows your area of business well.
To help you decide whether a new tax accountant ticks all the right boxes, here are 5 questions to ask them, before you make your decision.
How can you help me with my EOFY tax?
Your accountant should be able to clearly discuss your quarterly BAS and other financials with you, as well as how to maximise your deductions and minimise your EOFY tax.
How often should we meet?
It is a good idea to set up meeting times straight away, whether these are by phone, Skype or in person. Good communication is the key to a successful relationship with your tax accountant, so keeping in touch is vital.
How can you help me grow my business?
A good accountant is not only content to perform all of your BAS and EOFY tax financials, but will also be eager to help you expand. This means that you need a financial plan, which your accountant can put together with you and update monthly or quarterly.
How can you help organise my cash flow?
A well run business needs enough cash to pay their own bills and their payroll on time, as well as some capital in the bank for emergencies or business opportunities. Using your financials, BAS and EOFY submissions, your tax accountant should be able to model and forecast your cash flow into the future, helping you to keep on track and grow your business.
How can you assess my profitability?
Your accountant should be able to calculate your break-even point and tell you whether you are running at a profit or at a loss. If at a loss, then your break-even point helps you to reassess your pricing structure and hopefully lead you back into the black.
If you already have an accountant, but you are not sure if they are a good fit, here are 5 red flags that suggest you might need to look elsewhere.
Your accountant doesn’t answer your calls.
You can’t expect your tax accountant to answer immediately all of the time, but you can expect them to respond in a timely manner. If you are always waiting around for a response to your calls, then it might be time to find another accountant for your business.
They don’t explain your financials.
You should expect to be kept up to date with your financials, BAS and EOFY position, and your accountant should be able to clearly explain your financial position to you at any given time.
Your deductions are too low.
If you believe that your tax accountant is not maximising your deductions, then a frank and honest conversation needs to take place. You need to have full confidence in your accountant, so you should never be afraid to call them up and make them account for themselves.
Your taxes have gone up.
Again, you need an accountant who can clearly explain why your tax load has increased and if this is because your profits have risen, then that’s good news! If it is because of faulty accounting, then it is time to find another accountant.
A lack of professionalism.
If you believe that your personal relationship with your accountant is problematic to the success of your business, it might be time to reassess your working relationship.
For specialist help with your business financials or to start preparations for EOFY tax, call Conrad Carlile on 07 3871 1522 or complete our online enquiry form.