Working with the right accountant can do wonders for your business. But how do you know if you have found the right accountant for your business? Here’s a full guide to help you.
Accountants do more than just crunch numbers. They can also act as a trusted advisor who can steer your business towards growth and success. A professional accountant can provide strategic business insights, advice on financial management, help implement accounting software packages, and more— all of these then bring more meaningful benefits, including peace of mind that your business is growing, and the confidence that you are on a strong financial footing. With the right accountant, you can simply focus on running your business.
So if you’re looking for the best accountant to suit your needs, read on.
Why You Need an Accountant
Why does your business need an accountant? It’s understandable to think that managing your own finances might be the best and most cost-effective option.
However, there are numerous benefits to working with an accountant. They can serve as a financial gatekeeper, ensuring your finances are well-managed. Additionally, they play a crucial role in your business’s growth story, providing insights into your books so you can better understand the health and direction of your business at any given moment.
Accountants also help implement tax minimisation strategies and can ensure administrative compliance with the ATO and ASIC. They contribute value in ways that extend far beyond the balance sheet.
Understanding the Role of an Accountant in Your Business
What does an accountant do in your business? Here are the key functions an accountant can play:
- Bookkeeping — Maintaining accurate financial records.
- Filing Tax Returns — Ensuring timely and accurate tax submissions.
- Financial Management — Assisting with business budgeting, cash flow management, and investment analysis.
- Advisory Services — Offering advice on business structures, risk management, and strategic planning.
Beyond ensuring compliance by helping you meet your tax obligations, an accountant can identify cost-saving opportunities and streamline processes within your business for greater efficiency. They also help mitigate financial risk and provide valuable insights for strategic decision-making
How to Choose an Accountant for My Business?
When searching for the right accountant, balancing your books is just one aspect to consider. It’s crucial to choose a partner who can offer timely strategic advice, aligns with your goals, and understands the unique needs of your small to medium business— whether you’re a tradie, service company, brick-and-mortar, or family-run business.
Here are some vital questions to ask when assessing possible candidates:
Is the accountant qualified?
Verify their credentials and ensure they have the appropriate registrations, such as being a registered tax agent and a member of CPA Australia. This helps ensure they adhere to the highest industry standards.
A CPA designation and registration as a tax agent certify that the accountant adheres to industry rules and regulations. Additionally, if they provide financial planning advice related to financial products, they must be authorized under an Australian Financial Services (AFS) licence to offer such advice.
Is the accountant a registered tax agent?
Importantly for any accounting firm, only registered tax agents can file tax returns and liaise with the ATO on your behalf. For tax advice and compliance, this is crucial. So, you’ll want to check if the accountant you work with is a registered tax agent.
Can the accountant communicate effectively?
Communication skills can often be overlooked when we are looking for the right accountant, but it’s crucial to work with an accountant who you find communicates clearly. This ensures that even the most complex financial issues are easy to understand, as you’re working with a professional who can simplify complex processes and principles.
It’s important to make sure that your accountant can provide you with clear explanations of the financial basics as well as key data.
Does the accountant have the right experience?
While not always definitive, additional years of experience generally enhance an accountant’s qualifications. However, this shouldn’t be your sole criterion for assessing their skills, which is why considering other factors is also important. Many accountants may have many years of experience but may not have kept pace with changes to legislation or the industry.
An Accountant should have an understanding of the tax legislation that is relevant to your business and your industry. Most times, additional years of experience are an indicator of that. In some instances, it may help to work with an accountant who has experience in your specific industry.
Will the accountant care enough to do the best for the client?
Someone who cares about your success as much as their billable hours is what you should look for in an accountant. Otherwise, everything will feel transactional or rushed. Seek an accountant who exhibits sincere enthusiasm and dedication to their clients.
Can the accountant respond in a timely manner?
Time is money when you’re running a business— you can’t deny that. So, working with someone who can respond quickly and finish assignments on time helps, particularly when deadlines are approaching.
Does the accountant represent value for money?
Don’t only think about the cost of an accountant’s service. You should evaluate the service provided and whether he or she can ultimately save you money, time, and stress.
Are You Looking for an Accounting Partner You Can Trust?
More than just providing accounting services, Samnite Accounting and Advisory is a trusted partner who understands your business and is committed to its success.
Our professional accountants assist you with tax compliance, strategic financial management, accounting software implementation, and other services to help your business flourish. Whether you are new to business or have made your mark of many years, we tailor our services to meet your specific needs and ambitions.
Why should you work with us? Here are a few reasons:
- We’re highly experienced and qualified. Our principal, Anthony Colella has over 10 years of experience as a CPA and a registered tax agent.
- Our service is personalised and proactive. We get to know our clients so we can assist them in a way that suits their individual needs.
- We are passionate about business, we empathise with you and align every financial decision and goal with your business’ broader vision without sacrificing your financial well-being.
Contact us today and let us help you achieve long-term financial success!
First Steps to Take When Choosing an Accountant
When you’re looking for an accountant, these are some of your first steps:
1) Get Referrals or Search Online
You can find excellent accountants by word-of-mouth referrals from reliable co-workers, other small business owners, and medium business owners. On the other hand, internet recommendations and reviews provide a quick overview of an accountant’s standing and background.
2) Make Initial Contact
It’s important to have that initial discussion with a potential accountant. During this first conversation, observe how well they listen to your current needs and whether they can articulate solutions for your business’ specific requirements. You can anticipate a successful long-term partnership when your accountant communicates in a friendly and professional manner.
The Accounting Onboarding Process: What to Expect
The onboarding process usually follows these steps:
- Initial Meeting — After finding an accountant through referral or online, you’ll have an initial consultation. Use this opportunity to assess their suitability.
- Client Decision — After the meeting, you’ll decide whether to move forward with them. Typically, a client will decide during or shortly after the first meeting.
- Client Information — Once onboard, the accountant will request essential business information and financial records.
- Engagement Letter — You will receive an engagement letter outlining services, costs, and service levels, allowing you to choose the option that best fits your business.
- Onboarding to Systems — After signing, they will integrate you into their system for ongoing service.
- Queries and Compliance — If it’s tax season, they will request specific documents to complete your tax return and financials for the year.
Here are some Important Questions to Ask Before Engaging an Accountant
Before making a final decision, here are some critical questions to ask your prospective accountant:
- What is your firm’s standard for responding to clients? Timely communication is key, so make sure the accountant has a solid policy in place.
- What is the lead time for completing tasks? Understand how long typical tasks, like filing tax returns or preparing financial reports, will take.
- Do you offer specific advice on tax planning or financial strategy? If you have specific needs, such as advice on increasing tax savings, assistance with creating a business plan, or individual financial planning, ensure the accountant can provide tailored solutions.
Final Thoughts
The accountant you choose for your business can have a significant impact. It’s essential to select a financial partner who provides insights and guidance to support you in making strategic decisions. This can significantly contribute to driving growth and success, rather than focusing solely on compliance.
This checklist provides the resources you need to make informed decisions, ensuring your company’s efficiency, stability, and growth.
