12 Feb Reactive Vs. Proactive Accountants
For many small businesses, if you aren’t giving yourself time to prepare for potential opportunities and/or issues, then you won’t be able to jump to action to resolve them when the time comes. As the old saying goes, “failing to plan is planning to fail”. When it comes to your accountant, being able to stay ahead of the game is absolutely vital in ensuring their client’s business growth needs are nurtured long term.
Small business owners should be asking more of their accountants; they NEED more than just preparing financials and filling tax returns. Accountants are trusted advisors; many small business owners look to their financial professionals to help them grow their business.
Unfortunately, many accountancy firms are traditionally reactive, as opposed to being a proactive firm. What does a reactive firm look like? A reactive firm is continually addressing issues and addressing crisis management (in extreme cases). They are reactive in nature to enquiries from clients, to client cash flow problems, lodgment deadlines, and so on. By the time all of these concerns have been addressed and ‘reacted’ to, many accountants become exhausted (mentally and of resources) and have no time left to address the real issues facing their clients… how to grow their business.
Small business owners should demand more from their professional advisors and accountants; to work in a proactive environment, collaboratively with their clients. Proactive accountants are on the front foot. They address their client’s questions before they become urgent issues. This is something we pride ourselves on at Conrad Carlile.
If your accountant isn’t keeping up-to-date with changes to your business’ financial situation, you may find yourself in a very different financial situation than what you realise. Any information that you could potentially be offered won’t be based on current facts and figures.
Is your accountant proactive? It may be time to ask yourself a few important questions…
- Is your accountant helping your business grow?
- Is your accountant aware of the overall value of your business?
- Does your accountant know about your specific industry?
- Is your accountant available when you need them?
- Does your accountant proactively make sure you understand and fulfil your financial reporting requirements and deadlines?
Working with a proactive accountant goes beyond engaging with someone that is interested in your business. Truly proactive accountants remain on top of your accounts:
- Updating accounting records daily for your business, not monthly or quarterly
- Focus on real time tax planning
- Look for tax saving opportunities proactively throughout the year
This means that more time will be spent with you, the client. Communication and engagement with your accountant will be increased and encouraged to ensure you are both actively working towards your financial and business goals.
Is your accountant reactive or proactive in helping your business grow? At Conrad Carlile, we do the numbers so you have time to do what you love. We’re here to provide you with as much information as possible for your business, to crunch the numbers and evaluate your business’ financial position proactively. Want to find out more about getting your books in order? We’re here to answer all of your financial questions – contacts us today.