6 Questions You Should Ask Your Accountant
by Sumona Financial Planning 18 October 2022
Having an organized financial system can save you a lot of time and complications in the future, especially when you have a growing business.
But if you’re having trouble keeping your financial records up to date, you may benefit from hiring an accountant. Aside from maintaining your books, a skilled professional can also give you advice on the best strategy for handling your business.
So to help you get the most out of your accountant’s services, here are questions you should ask to get you ahead of your financial goals.
What Does An Accountant Do?
At first glance, you may think an accountant’s job only involves recording on ledgers and spreadsheets but there is more to their responsibilities than keeping your financial records intact.
Normally, an accountant gathers and analyzes data, prepares financial reports, and keeps records accurate. But they can also make sure your business stays compliant by filing the right legal documents and paying its taxes on time.
While an experienced accountant can also help your business grow by formulating an effective financial strategy. So if you’re a business owner that’s struggling to maintain your finances, having an accountant on your team can greatly improve your business’s performance.
6 Questions To Ask Your Accountant
Having a trustworthy accountant that you can openly discuss your financial goals with can lead to better business decisions and strategies. So to help you start the conversation, here are questions you should ask your accountant:
1. What financial records should I hold onto?
To keep your business up and running, you’ll need to have the correct legal documents on hand to avoid future complications.
An accountant should know that business licenses and permits, bank statements, tax returns, receipts, and employee payroll records are only a few of the documents you need to keep track of. So to avoid losing any of your files, your accountant can also simplify their system by uploading them digitally on a secure device.
2. How should I handle tax season?
Tax season may not be a favorite period among taxpayers and business owners, so it’s best to ask your accountant what steps you should do to make the process easier.
Your accountant will take care of filing the required documents and paying your tax returns, but it wouldn’t hurt to prepare a few weeks in advance to make sure all of your records are complete and accurate.
Your accountant should also be aware of any latest tax law changes, so make sure to ask if there are any that could affect your business.
3. Can you give me advice on how to improve my business?
Since every accountant will have differing specialties, it’s better to ask if your accountant has any skills and experience in how to manage businesses. They should be able to help you craft an effective business plan and advice on which legal structure to take to maximize your business’s potential.
Having a professional with extensive knowledge of your industry can also give you an advantage since they’ll know the ins and outs of what strategies can work well to make your business grow.
4. What changes should I make for better profitability?
Focusing on gaining a specific amount of revenue shouldn’t be your only way to measure your business’s growth, but increasing your profitability can be achieved through careful assessment and planning.
Since your accountant will have the data that can predict how your cash flow will turn out, you can collaborate on making a feasible financial plan that can cut back your expenses without sacrificing quality.
You can also ask them to help you set a budget for each area of your business so you can avoid overspending on unnecessary matters.
5. What areas of my business should I prioritize?
Since every business owner aims to see their company grow, asking your accountant which area of your business you should focus on first could vastly improve your performance in the long run.
Considering you’ll have to oversee every aspect of your business’s operations, it would be time-consuming and confusing if you have to juggle all responsibilities at once. Having your accountant narrow down your tasks can help you identify which ones are less urgent so you can focus on creating better solutions.
6. What business decisions should I keep you updated on?
Having solid communication with your accountant can be valuable for your business since they can help you make better business decisions and prevent you from making financial mistakes.
So make sure to ask your accountant what updates they’ll be expecting from you so they’ll be able to advise you on whether it’s a good step.
For instance, if you’re planning on expanding your business, your accountant will be able to assess if your finances will be able to handle the cost.
If you’re looking for a dependable accountant for your business, you can trust Lear & Pannepacker to provide you with the best services to accommodate all of your accounting needs.