Don’t let your accountant be a bookkeeper. Bookkeepers charge $50 an hour. Accountants charge up to 10 times that amount.
Accountants have an obligation to their clients to give advice, aside from controlling bookkeeping and completing tax returns. Sub-par and average accountants prepare financial statements and simply post the final results and tax returns to the client. There’s no analysis of the results, or suggestions to grow the business or deal with issues that have arisen.
Without having to be asked, the right accountant will offer their expert analysis on:
1. Your actual results
2. Ways to limit your tax bill
3. The efficiencies of your operations compared to your expectations, market trends or benchmarks
4. The effect your results have on the asset value of your business and your ability to enjoy your future as you see it
5. Any and all outstanding issues a quality accountant will notice. The right accountant will pick up what others, including yourself, miss.
If your accountant is giving you the advice outlined above – you’re one of the lucky few.
You don’t want your accountant to simply compile your results. That’s a job for bookkeepers. You get value out of your accountant when they implement their cumulative knowledge, ensuring the ATO get as little of your money as possible.
It’s at this time the ‘right’ accountant will offer you their analysis on the 5 areas we’ve run through. If not, you’d be wise to go to another accountant promptly.
This is just one mistake business owners make with their Accountants… there’s more.
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