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It's Time - To talk to your accountant !

Guest post by: Stan Prokop

Article Overview: The article discusses how business owners and financial managers can use their accountant as a resource

It's Time - To talk to your accountant !

Most successful business owners realize their accountant does not just prepare the financial statements, do the ' bookkeeping ' , etc . The accountant can be a valuable resource in a lot of key areas of business growth. Those areas include:

Financial planning/budgeting/forecasting

Taxation

Control systems

Financing

One should also realize its incumbent on the business owner and financial manager to start this dialogue. While optimally the dialogue between a business owner and an accountant should be happening all year round, it is somewhat customary for many businesses to discuss the above and other key issues at the end of the year.

What topics can and should be discussed with your accountant at that time?

A good accountant will recognize that your firm might need additional funds over the coming year. Frank discussion can ensure around borrowing cost, chances of success, and your accountants experience with his other clients in this area. This is also the time to discuss the pros and cons, based on his or her experience, of success in additional financing. Your accountant usually has numerous clients, and more importantly, is connected to a network of business advisors in financing, legal, marketing, etc. This network is valuable to you!

Naturally every business owners wants confirmation from his accountant that taxes and source deductions are paid up to date - many of these items carry a personal liability for the owner. Therefore the business owner wants to know he is on side with government and regulatory bodies.

Accountants are solid sounding bodies for the quality of you accounts receivable. He can calculate and point out your overall collection period turnover.

As firms grow bigger your accountant may have solid suggestion around a corporate or personal pension plan scheme that may not have been discussed earlier when you started the business.

On occasion the accountant might see the need for the creations of a new legal entity, such a holding company, re: tax deferrals, etc.

Since the accountant has a key role in financial statement preparation it might also be the time to discuss need for a new accounting system.

In certain cases the business may wish to progress to the next level, and consider such steps a true audited financials, etc. Your accountant can pinpoint costs and benefits in that area.

It is incumbent on the accountant to keep up to date with accounting and legal legislation as it refers to business.

In summary, a year end dialogue, (and preferably an on going one) is a valuable resource for any business owner or financial manager, and brings true 'value add 'to the role of the accountant.

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Article Tags: accounting, business growth, business success



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