Written by Lucy Panchal, partner at Champion Accountants
Recently, while presenting to a group of business owners, I encountered some technical delays that forced me to ad-lib for the duration of the event. Surprisingly, the improvised presentation that followed brought incredibly insightful results and became one of my best to date.
The talk I had planned went out of the window. Instead, it became about the important conversations business owners should be having with their accountant (but often are not!). Below are six questions I posed to the entrepreneurs in the room…
Question 1: Have you discussed the rollout of Making Tax Digital with your accountant?
The government continues to encourage businesses to transition to digital platforms to streamline tax processes, improve accuracy, and reduce errors. Making Tax Digital (MTD) requires that businesses manage their tax affairs with HMRC by making use of compatible software. If you haven’t already signed up for MTD, make discussing this with your accountant a priority.
Question 2: Are you in the correct business structure, given the tax rate changes?
With a raft of new taxation changes in effect, a limited company structure isn’t necessarily the most effective for all businesses. A reduction in tax liability may be available to you, depending on the type and size of business you operate, meaning some businesses will find exploring a change in structure worthwhile.
Question 3: Are you using up-to-date online software?
From accuracy and automated processes to easy invoicing and financial report production, using online software for your business accounts comes with a host of advantages. Your accountant should be able to explain the functionality you need so that you can make the right choice of software program.
Question 4: Have you spoken with your accountant about eliminating paper records, and instead storing everything in an online accounting platform?
You may be ready to go paperless, doing away with invoices and receipts cluttering your desk. Online filing and accounting platforms are a safe and secure way to store a wide range of documents and can help to reduce manual accounting tasks.
Question 5: Do you have a chat with your accountant before your year-end to proactively plan for the new financial year, rather than waiting until your accounts are filed?
Let’s be honest, there’s little point in discussing your financial decision-making after the fact. A check-in with your accountant may be a good idea any time of the year, but particularly at the start of your business year when important changes can be made.
Question 6: Does your accountant proactively circulate advice and support?
Communication is key to any successful relationship. This is as true in business as in our personal lives. At Champion, we send a monthly email to our clients, covering a range of advisory topics and keeping them informed of key financial events throughout the year, such as the Budget.
Why proactivity matters
There’s no question that business owners have countless spinning plates occupying their time and mental bandwidth. That’s why I argue that a good accountant is a proactive one, who will initiate these and other similar conversations, make suggestions where appropriate, and follow up in due course.
In this way, the accountant isn’t a number cruncher only heard from when business accounts are due, but a continual resource and an ally who ensures that the business’s financials are arranged in the most advantageous way possible, supporting the business to achieve its ultimate growth aims.
If you’re not having these conversations with your accountant, perhaps you need to ask why.
And, if you aren’t getting the service you deserve, is it time to make a switch?
To discuss your needs in more detail, email me at lucy.panchal@championgroup.co.uk or call our Preston practice on 01772 735000.
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