It's a great shame that so few business owners make the most of their accountant. Yes it's true the accountant prepares the annual financials and tax returns but a good accountant is capable of much more. Here are a few things they can help you with.
Regular Management Information
To run a successful business you need timely and regular management information throughout the year and there's a proven link between the availability of regular financial information and business survival. With modern, low-cost accounting software it's never been easier.
For smaller businesses knowing your break-even point is vital to your ongoing business survival. And don't forget to ask your accountant to take account of your drawings, tax & ACC.
Analysing Financial Data
Get your accountant to explain your annual financials and look at trends, your gross profit margin and working capital tied up in Accounts Receivable or inventory.
Key Performance Indicators
You need to monitor the factors in your business that are critical to your success. For a trade business, for example, these would include labour productivity and the average hourly labour charge.
Cash Is King
It's important to understand the difference between cash and profit. Over 60% of businesses that go bust are still profitable!
Learn from Success
Business improvement doesn't have to involve complex or costly business strategies, it's often just common sense and making the most of the available resources. Your accountant should be one of the most important.
Your accountant has exposure to a lot of successful businesses so ask them how you compare with other businesses and what those who are very successful are doing.
If you have any tax or business queries of any kind telephone 0800 ASK NICK, e-mail me at email@example.com. The information in this article is of a general nature and should not be relied upon as a substitute for specific advice.
Important: This is not advice. Readers should not act solely on the basis of the material contained in this fact sheet which consists of general comments only and do not constitute or convey advice per se. Changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. We believe the contents to be true and accurate as at the date of writing but can give no assurances or warranty regarding the accuracy, currency or applicability of any of the contents.