What to Look for in a Reliable Business Accountant

19 June

Choosing the right business accountant is a crucial decision that can have a significant impact on your company’s financial health and overall success.

A reliable accountant is more than just a number-cruncher; they are a strategic partner who can help guide your business through financial complexities and support your growth ambitions. Here’s what to look for in a reliable business accountant, how they can help, and the essential conversations you should be having with them.

Key Qualities of a Reliable Business Accountant

1. Relevant Experience and Expertise
Look for an accountant who has experience in your industry. They should understand the specific financial challenges and opportunities that come with your line of work. For example, if you’re in the medical field, your accountant should be familiar with medical billing, tax deductions specific to healthcare providers, and the regulatory environment.

2. Professional Qualifications
Ensure that your accountant holds the necessary professional qualifications and certifications, such as being a Chartered Accountant (CA) or a Certified Practicing Accountant (CPA). These qualifications indicate a level of competence and adherence to professional standards.

3. Strong Communication Skills
A reliable accountant should be able to explain complex financial concepts in a way that is easy to understand. They should be approachable and open to answering any questions you might have about your finances.

4. Proactive Approach
The best accountants don’t just react to financial issues as they arise; they anticipate problems and opportunities before they occur. They should regularly review your financial statements, provide insights, and suggest improvements.

5. Technological Proficiency
In today’s digital age, proficiency with accounting software and other financial technologies is essential. Your accountant should be adept at using tools like Xero, QuickBooks, or MYOB to streamline processes and improve accuracy.

How a Reliable Accountant Can Help Your Business

A reliable accountant can significantly impact your business by providing comprehensive financial planning and analysis, ensuring your financial plans align with your business goals and analysing financial data to offer strategic insights. They are adept at navigating the complexities of tax planning and compliance, ensuring you adhere to all regulations while identifying tax-saving opportunities, preparing and filing tax returns, handling audits, and keeping you informed of changes in tax laws. Effective cash flow management is another critical area where an accountant can assist, helping you forecast cash flow, manage working capital, and optimise financial resources.

Additionally, they can provide valuable advice on business structuring and restructuring, whether you're starting a new business or reorganising an existing one, to minimise tax liability, protect assets, and facilitate growth. Risk management is also essential, and a reliable accountant can identify financial risks and develop strategies to mitigate them, from managing debt to planning for potential financial downturns.

Essential Conversations to Have with Your Accountant

✔️ Business Goals and Strategy
Discuss your short-term and long-term business goals with your accountant. They need to understand your vision to provide relevant advice and support.

✔️ Financial Performance and KPIs
Regularly review your financial performance and key performance indicators (KPIs) with your accountant. This helps you stay on track and make informed decisions based on accurate data.

✔️ Tax Strategies
Talk about tax planning strategies to ensure you’re taking advantage of all available deductions and credits. Discuss any changes in tax laws that might affect your business.

✔️ Cash Flow Projections
Review cash flow projections to anticipate any potential shortfalls and plan accordingly. This conversation is crucial for maintaining healthy cash flow and avoiding financial crises.

✔️ Risk Management Plans
Discuss potential financial risks and how to mitigate them. This includes everything from insurance coverage to contingency planning for economic downturns.

Case Study: Sam and Jen's Construction Business

Sam and Jen, a married couple, own a local construction business. They started as sole traders but quickly realised they needed to expand and restructure to accommodate their growing clientele. Over time, their business evolved into a company employing several employees and contractors to handle various tasks. However, as their business grew, they began to face significant cash flow issues and struggled to keep up with their quarterly Business Activity Statements (BAS).

That's when they turned to Strategem for help. The Strategem team worked closely with Sam and Jen to understand their financial challenges and goals. Here’s how they helped:

Cash Flow Projections: Strategem created detailed cash flow projections to help Sam and Jen anticipate income and expenses. This enabled them to plan their finances more effectively and avoid shortfalls.
Expense Management: They implemented strategies to manage expenses more efficiently, ensuring that Sam and Jen could allocate their resources where they were needed most.
BAS Management: Strategem introduced a weekly strategy where a portion of their income was set aside into a separate account specifically for BAS contributions. This proactive approach ensured that Sam and Jen were always up to date with their BAS payments, reducing stress and improving their financial stability.
Ongoing Support: Strategem provided ongoing advice and support, helping Sam and Jen adapt to changing financial circumstances and continue growing their business.

Thanks to these efforts, Sam and Jen were able to overcome their cash flow issues, maintain compliance with BAS requirements, and position their business for sustained growth.

Choosing a reliable business accountant is a vital step in ensuring the financial health and success of your business.

By looking for an accountant with the right experience, qualifications, and approach, you can gain a valuable partner who will help you navigate financial complexities and achieve your business goals. Regular and open conversations with your accountant will ensure that you are both aligned and working towards the same objectives. Take the time to find the right accountant for your business, and you will reap the benefits of their expertise and support.

We are here to help

If you need further advice on this topic, please do not hesitate to contact our office on (03) 5445 4777 and one of our Accountants will be available to support you.

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