You’re likely a subject matter expert in what your small business deals with specifically. You’re ready to work with customers to answer their questions and provide quality service to them. When it comes to taxes, however, chances are you’ve got more than a few questions and need the help of an accountant. With the complexities of filing taxes for a business, it’s not only common but recommended that you use the services of an accountant, and the best you can find within your means. The big question is how do you know when an accountant is good or not? What do you need to look for, and how do you know when to switch accountants? Here’s a quick guide for knowing when and how to dump your accountant.
They’re Only Around At Tax Season
It’s obvious that tax season is crunch time for accountants and their clients, but that won’t be the only time you’ll need your accountant’s advice. Throughout the year, you’ll have questions as you run budget comparisons and other financial paperwork, and your accountant can help. As amounts to be paid add up, your accountant can be there to help find deductions specific to your small business.
“The common perception of the accounting is the breath-taking date of taxes due. However, the tax due date is not the end, but just the beginning of the cycle,” says Ella Rivkin, CEO of ERPS Group in New York. “Your accountant should help you to plan the expenses and deductions so that you don’t have a heart attack when see your amounts to be paid. Governments supports small businesses with several deductions. Knowing them is your great opportunity to grow big.”
Having an accountant around for that planning and strategy for the whole year is vital. If your accountant only makes themselves available during tax season, it may be time to move on and find someone who can help your business grow even more.
Look For an Educator
There is absolutely no shame in asking for help or enlightenment regarding your business taxes or how to improve financially. Accountants oftentimes have a wealth of knowledge regarding not only tax laws and deductions and filing K1s, they’ll also have ideas as to how these things can benefit your business substantially. Like the point above, tax season shouldn’t be the only time you speak with your accountant. You should be speaking on a monthly basis to stay in touch with the numbers on your business.
Rivkin adds: “Remember that it is solely and generally your responsibility to be into the numbers of your business. Get involved! Learn the course and size of your business’ cash flows. Statistics show that the majority of business owners become blind when they see great revenues and never check the sustainability of the business.”
The case may be that your accountant isn’t making themselves available for these monthly check-ins or simply doesn’t have the expertise or knowledge to help your business beyond filing paperwork. Look for someone who will work with you hands-on to take the best care of your business finances possible.
Someone You Can Trust
For the times when maybe you don’t have the time to sit down and be as hands-on as you would like, it’s key to have someone you can trust to take the reins.
“Small business owners have so much that they have to deal with on a day-to-day basis that they should feel comfortable delegating the taxes to their accountant and know that their accountant has their back,” says Rivi Biton, a CPA with Strategies for Wealth in Jericho, New York. “A good accountant works with business owners to develop record keeping and maximization of deductions. In addition, a good accountant has to be up to speed with new legislation and guide his or her clients through those changes.”
Biton also mentions that your accountant should be somebody you feel comfortable referring others to. If you don’t trust them with your business or to do good work for those you know, it might be time to dump your accountant.
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