Does Your Accountant Work Hard for You?
According to a recent survey that took place in the USA among small business owners, the latter view their accountants primarily as the men and women in dark suits whose expertise is needed only for tax filing reasons.
Those compliance services (for example Accounts preparation for filing with the tax authorities and the Registrar of Companies) are not useful for decision making. Information included in the accounts is given too late to be used as a decision making tool and they are compiled in a technical language, which is not understandable by the average business owner.
The same survey showed that, just as some people avoid going to a doctor unless they are ill, entrepreneurs don't usually take advantage of the expertise their accountants could offer until the health of their business changes to the worse, i.e. until when they are in trouble. And the assistance the accountant might be able to offer to solve the problems will then be too little, too late!
Only when they run into problems do they realise that their accountants can help with more than mandatory compliance services such as accounts preparation for tax filing purposes and auditing.
A good accountant can provide a wide range of services that can assist small business owners that cannot afford the resources to hire internally personnel, in achieving their business objectives. To read some interesting articles on the usefulness of financial planning for small businesses please click here and here.
It doesn't come as a surprise to us (being accountants) that the same survey shows that it's the most successful clients that tend to use those value added accounting services most extensively.
The small business owner runs the show, calls the shots and makes decisions to achieve his business goals. The interaction of a small business with the other market participants e.g. customers, suppliers, competitors, personnel, the government with tax and other legislation represents the source of problems or opportunities for the business owner. Running a business is more stressful nowadays that it was in the past. Not surprisingly, small business owners are feeling stressed.
Business owners know damn well that they definitely need support and assistance where they don't have the necessary expertise. That support should mainly be targetted towards achieving tax savings and carrying out financial planning. Assistance in making easier and faster decisions and have control over finances.
Even when business owners have the basic knowledge or the time to focus on the bigger picture, a second opinion is always welcome when it comes from an independent person and carries expertise.
Qualified Accountants are perfectly positioned to fill that gap offering support to the business owner because of their vigorous studies before given their practising licence, expertise and experience dealing with business for many years.
A good accountant can become part of the client's business team, like a business partner to them. When an accountant takes on a new small business client, it's only natural that they take an interest in their survival and growth and become more involved in the client's activities.
It's true that, so far, many accountants haven't been filling in those shoes. The reason is usually lack of resources or their policy. As a result, business owners have not traditionally seen accountants with very good eyes.
To read a complete analysis of the reasons why many accountants have not been offering such a value added service as well as the general misconceptions about accountants, please click here.
Accountants can justify the money they get from their clients by providing a service that offers tangible benefits to serious entrepreneurs, a value added service.
For such a service to be beneficial, it must be customised to meet the business' needs and requirements because every business is different.
A business whose owners are not involved in the every day running of the business or live abroad might require different reports from business owners actively involved in the day-to-day running of the business.
Start-up costs and financing requirements at every stage of development can differ. Some businesses can be started on a shoestring budget while others may require considerable inventory or equipment. It is vitally important to know that you will have enough money to get your business venture off the ground.
Your business may be different in some ways but in most of the important ways it is just like every other business. You are selling the benefits of a product or a service to people. You have to collect more revenue than the expenses you pay in order to stay in business. Your business has to include marketing, sales, leadership, management, production and finance functions.
To find out about the features and characteristics of a tailored accounting service, please click here.
Please feel free to use all the information that you will find on the web site.
If you have questions, please feel free to contact me personally at any time. You can call, e-mail, fax or write to me and I will be happy to answer any and all of your questions.
Good luck in your business ventures!
Use the buttons below to share this article or tell a friend about it.
