As a business owner, you likely desire to do whatever you can to keep your company’s finances in check. This is why working with an accountant you can trust and count on to maximize your business’s financial health is compulsory. Whether you have an in-house or outsourced bookkeeper, all your bookkeeping tasks to an accountant at a firm. You want to confirm that the person you assigned your business’s finances to is doing the best job possible. However, you wouldn’t want to continue working with an accountant who isn’t doing the best they can to boost your business.
Signs You May Need to Hire a New Accountant
Running a successful business requires many tasks to be managed efficiently, and one of the most critical aspects is maintaining proper financial records and managing accounts. Seeking guidance from a qualified accounting professional can provide valuable insights into assessing your business’s financial well-being. Be attentive to the following indicators that indicate signs to consider finding a new accountant for your business.
No Desire to Understand Your Businesses
If your accountant is not interested in familiarizing themselves with your business, they are stumbling at the initial obstacle. Grasping your objectives, aspirations, and the operational intricacies of your business isn’t merely a trait of a proficient accountant; it’s a fundamental aspect of professionalism. An indication that they are displaying minimal inclination to comprehend your business is when they bill you for discussions instead of recognizing it as an integral part of the process to gain deeper insights into your operations. This communicates that they prioritize their time over understanding your business.
Always Late in Accounts Management
Numerous accounting firms recommend that business proprietors opt for their management accounting service as a reliable tool for facilitating well-informed decision-making. Compelling management of accounts should be the primary stride toward exercising genuine control over your business’s finances. If you receive management accounts belatedly, not only does this reflect poor practice, but the data and information provided also become futile. This allows you to engage in pertinent and meaningful discussions based on current and pertinent information.
Lack of Proactive Communication
Effective communication is the foundation of any successful business relationship. It could be a red flag if your current accountant is not proactive in communicating with you. A proficient accountant should respond promptly to your inquiries and take the initiative to update you on important financial matters. They should inform you about tax deadlines, financial reports, and potential cost-saving opportunities. If you constantly chase your accountant for information or updates, it might be a sign that they are not fully engaged in your business’s financial well-being.
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Ignoring Tax-Saving Opportunities
One of the primary roles of an accountant is to help your business minimize its tax liabilities within the bounds of the law. If your accountant isn’t proactive in identifying and implementing tax-saving strategies, you could leave money on the table. A skilled accountant should stay up-to-date with changing tax regulations and be creative in finding legal ways to reduce your tax burden. If you’re constantly surprised by high tax bills and your accountant isn’t offering any strategies to mitigate them, it might be time to find someone more dedicated to optimizing your tax situation.
Inability To Adapt To Your Business’s Growth
Accountants contribute to businesses in two distinct manners. One approach involves conventional accounting practices, while the other involves CAS or client-accounting services. This distinction pertains to their effectiveness in catering to their client’s needs and the scope of their offerings. Client-advisory services excel in their capacity to swiftly accommodate rapid business expansion and navigate changes in areas where traditional accountants and accounting services often encounter challenges. Contemporary businesses can experience sudden surges in traffic, phases of substantial growth, or unforeseen spikes in activity.
Out-Of-Date Information
One of the most prominent indications that it’s time to seek a new accountant for your business is when the accountant relies on and cites outdated information. The IRS consistently introduces updates throughout the year, encompassing new rules and regulations that can either benefit your business or lead to additional expenses, so staying informed is crucial. While the onus shouldn’t solely fall on you to keep abreast of the latest accounting developments, your accountant should actively communicate these updates. If this isn’t the case, establish regular check-ins with them to discuss updates that could be pertinent to your business.
No Financial Improvement
An engaged accountant is pivotal in enhancing organizational efficiency, management practices, and overall financial success. If a considerable duration has elapsed and you have yet to witness favorable improvements in your financial landscape, consider engaging a different accountant. This shift is the solution to revitalizing your financial prospects, aligning with your initial aspirations when seeking accounting support. It’s essential to recognize that there’s no stigma attached to seeking a new accountant. Sometimes, the alignment between their individual and professional approach and your specific requirements might not be optimal.
Errors and Inaccuracies in Financial Statements
As a business owner, it’s crucial never to dismiss or become complacent about seemingly minor mistakes. While you might receive periodic reports, their value diminishes when you identify inaccuracies. These discrepancies contribute to flawed data and might serve as a veil, concealing more substantial underlying problems. Collaborating with an accountant who lacks precision and a structured set of procedures is far from ideal for a business endeavoring to expand and maintain its operations. Ultimately, if errors persist as a recurrent theme, it’s a clear indicator that your current accountant might not align with your business’s optimal needs.
To Wrap Up
Recognizing the signs that indicate the necessity of finding a new accountant for your business is crucial for maintaining financial health and fostering growth. An accountant’s commitment to understanding your business, timely communication, proactive tax strategies, adaptability to growth, and accuracy in financial management are essential attributes. If these elements are lacking, consider seeking a new accountant to better align with your business goals and drive its success.