Are Your Relying TOO Much on Your Accountant?

Having a good accountant is a crucial part of a successful business. As we’ve talked about in the past, accounting and bookkeeping are not things that business owners should be doing themselves, and you definitely don’t want to opt for a cheaper, less skilled accountant, because it will end up costing you in the long run.

But there are situations where you rely too much on your accountant. Many business owners forget that for their accountant to be successful and effective at saving them money, they too have to have some understanding of their situation and put in some work. Accountants are the experts that understand the ins and outs of the tax code and your financial situation, but you also have to do your part.

Dangers of Relying too Much on Your Accountant?

There are several problems you can run into if you rely too much on your accountant, without taking some responsibility yourself. Particularly if you recently started working with an accountant.?

They might not understand your business - In order to be effective, your accountant has to have a good grasp on your company and what you do. But you can’t just expect them to have that right out the gate. Even if they have worked in your industry before, every company is unique. At the beginning of your relationship with an accountant, you should take the time to thoroughly educate them on the ins and outs of your business’s culture, financial history, long term business strategy, and future goals.

You may not be able to evaluate how well they do - An accountant not only helps you save money during tax time, they are also a trusted business advisor and should be doing ongoing strategic planning throughout the year. They should be advising you things like monitoring your investments to take gains and harvest your losses, monitoring when you are bumping up against phase-out limits on deductions, and keeping current on upcoming tax legislation. But if you rely on them too much and don’t take the time to understand what they should be helping you with, then you won’t know if they are doing what they are supposed to be.?

They won’t be able to do their job effectively - The bottom line is that your accountant is not a miracle worker. They need your input to do their job well. A good accountant will lay the groundwork for what they need, set goals with you, and show you how to keep your numbers in order, but you have to put in the work and follow the instructions they give you. For example, you should be separating business and personal expenses, keeping receipts, and not waiting until the last minute to get your accountant the materials they need. If you do your part, you can rely on them to do theirs.?

How to Build a Strong Relationship with Your Accountant?

The best way to cultivate a good working relationship with your accountant and to know whether they are doing the best job possible for you is to gain at least some understanding of what they are doing for you. Here are some tips:

• Give your accountant access to everything, bank accounts, operating systems, and tax returns.?
• Educate yourself on the basics of tax planning and bookkeeping. You don’t have to be an expert, but having that basic knowledge will allow you to evaluate your accountant and work more effectively with them.
• Make a plan and set clear goals with your accountant and stick to your end.?
• Be proactive and curious. Ask your accountant questions about things you can be doing to improve your cash flow and tax bill. If you feel you are owing too much in taxes, ask them. Just generally try to be a part of the process and stay in the loop.?

At the end of the day, you are a very busy business owner. But taking these steps will pay off huge in the long run. We have resources that can help! Our team is almost ready to launch an educational platform called the Ultimate Business Resource. It is an easy way to gain the knowledge you need about business mindset, cash flow, tax planning, and more.?

The Ultimate Business Resource is being pre-launched this week, with the general launch happening shortly after. Keep an eye out for my posts and emails for your chance to sign up!

If you want to improve your business’s financial position or change accountants, please schedule a time to talk here. ?

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The Ultimate Business Resource

It’s simple: Most business owners just don’t have enough knowledge about everything that’s required for their businesses to reach their full potential.?

That’s where the Ultimate Business Resource comes in.?

It’s a paid education platform that teaches business owners about…well…everything they need to know about to actually run their businesses.?

You’ll learn about:

• Cash flow management
• Revenue stream strategies?
• How to overcome financial frustrations?
• Tax planning basics and strategies?
• Payroll basics?
• How to save for retirement and reduce taxes?
• And much, much more

We will be launching this platform for the general public and offering a Black Friday Special next week, so keep an eye out for your chance to join!?If you have any questions about the platform, please send me a DM!

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Client Success Story

Dan is a dear client of mine who does 1:1 coaching with me and his wife.

Dan has worked in the healthcare industry for 20 years, specializing in IT and Web development. He later worked as a Project Manager, assisting clients in installing software and configuring their IT needs. He is currently employed by a healthcare company that provides complex care to patients who require in-home visits.

Watch the entire interview as he shares his experiences, challenges, and how coaching has helped them stay on top of their business.

Watch the interview here.?

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Tune In to Our Weekly CFO Scoop

Don’t forget that I’m doing LinkedIn Lives most Tuesdays! Tune in for tips, insights, and best practices around business growth, tax optimization, developing an abundance mindset, and more. Leave us a comment to let us know what topics you’d like to see covered in these weekly lives!