An accountant plays a major role in any successful business. They can help you track your income and expenditures, provide quantitative information to investors and management, and ensure statutory compliance. Accountants maintain a systematic, accurate, and complete record of all financial transactions in a business. Due to the importance of accounting when it comes to the success of your business, it’s vital to have a skilled and experienced accountant. Below you will find the signs it’s time for a new accountant so you can keep your company running effectively.
Signs It’s Time for a New Accountant
A good accountant can be highly beneficial for your business. However, a not-so-good accountant can cause a variety of issues. Below are some of the signs it’s time for a new accountant.
Overly Complicated Explanations and Reports:
An accountant needs to be well-versed in all of the financial aspects of a business. However, they should be able to simplify the information to someone who is not an accounting expert. Finding an accountant who can give you straightforward information and financial reports is crucial. This is because you are paying for their expertise and should not have to research additional information to understand their work. Clear and simple communication can help you avoid issues in the future that can cost you money. If your current accountant uses overly complicated jargon or reports that need additional information, it’s time to find a new accountant.
Solely Offer Accounting Advice:
A skilled accountant will provide more than just accounting services or information. Top accountants understand your industry and can help you with business advice based on your financial status. This includes strategic planning for business growth to ensure you meet your business objectives. If your accountant only offers accounting services, but does not provide you with helpful business advice, reconsider their services.
Extra Charges for Advice:
If your accountant nickel and dimes you when you ask for advice, it’s a sign they may not be right for your business. Unlike project-specific industries, accounting services should include open communication between you and your accountant. You should be able to discuss questions with your accountant without being charged extra every time. Reliable advice from an accountant is a part of the package, not an add-on. Your accountant should build a healthy and open professional relationship with you and your business.
Lack of Training or Professional Resources:
The business and accounting industries are constantly changing due to legislation and advances in technology. Accountants who are members of professional network and communities have the most up-to-date information, training, and resources. This is beneficial as their expertise can ensure statutory compliance. An accountant who remains stagnant in terms of professional development can be a major risk for your business. Talk with your accountant about their professional network and training to ensure you have the very best accountant.
Missed Deadlines and Lack of Organization:
The very essence of accounting revolves around organization and timeliness. Missed deadlines, unorganized reports, and a failure to stay on top of their duties can be a huge red flag when it comes to your accountant. A lack of professionalism in this sense can cost you more than just your time, it can result in tax penalties and unnecessary charges. If you notice these issues with your accountant, consider hiring a different accountant. An accountant should take things off of your plate, not create more issues.
Overlooked Tax Deductions:
An accountant should be skilled and diligent in recommending tax deductions for your business. They should be taking advantage of all possible tax credits that apply to your business. Minimizing your tax burden should be a major priority. An accountant that overlooks these types of things is likely slacking in other areas. If you are concerned about your accountant as it relates to your taxes, consider getting a second opinion. Otherwise, you may want to consider hiring a new accountant to ensure your business needs are being met.
Reactive vs Proactive:
An accountant should be focused on being proactive when it comes to your business. Preventing problems with your taxes and other financial issues rests on your accountant’s ability to be proactive. An accountant should be focused on preparing you for the upcoming year and considering all of your financial business goals. If your accountant isn’t a go-getter helping you achieve your business goals, consider finding someone who is a better fit for your needs.
Your accountant may have been great in the beginning, but things can change. If your accountant’s reputation is in question, consider hiring a new accountant. While there is always senseless chatter and gossip, credible accusations about your accountant’s reputation is serious. Protecting your business involves delegating to credible professionals.
Having a skilled and professional accountant can make a huge difference when it comes to the success of your business. If you are looking for a new accountant, consider Indevia Accounting. They have helped countless clients achieve their financial goals. They offer a wide variety of services and have an outstanding reputation in the field. Get in touch today to learn more about your options.