Key Questions To Ask Your Accountant

Running a business in today’s world certainly has changed over the last decade. Now more than ever it is important to have the right business services accountant on your team. The investment you make and the relationship you build with that trusted advisor will assist in alleviating some of the stress that comes with being a business owner. The power of a trusted advisor, with a connected group within their network is a key business relationship that you should hold. This gives you access not only to their taxation and accounting skill set, but to other key professionals such as financial planners, self managed superannuation fund advisors, insurance brokers, lawyers and finance brokers, to name a few.

Clients will often only have one meeting or conversation with their accountant, usually after the end of the financial year. This may be too late, only being able to review what has happened in that prior year. While that can be a useful starting point, ideally you want to aim to have more than two catchups with your accountant over the next 12 months, to enable a more forward-thinking approach.

Get the most out of your accountant by asking key questions that help you run your business. Your accountant, knowing your business financial position, is best placed to discuss with you, things such as, but not limited to the following.

Questions to ask your accountant

Your bookkeeping system

• Am I using my current system to enable the efficiencies that it offers?
• Is my current package proving value for money, or what alternatives can you recommend?
• Is my current bookkeeper proficient in the task?

Australian Taxation Office (ATO) and other compliance obligations

• Am I meeting my compliance obligations in a timely manner?
• Do you foresee any additional compliance measures that may impact me into the future? (For example, I am thinking of purchasing a motor vehicle in my company? Or I am going to employ more staff to meet my growing business demands, what additional compliance measures do I need to be aware of, for example Superannuation Guarantee Charge, Payroll tax, work care?)

Regular reviews of your financial statements

• My Profit and Loss Statement shows I am making a profit, but I don’t have the cash, what has happened to my cashflow?
• I am considering expanding a part of my business and I may need finance in the next 6 months, is my financial position healthy enough to enable this?
• I always seem to have trouble meeting my ATO obligations by the due date, can you assist me with cashflow planning and future budgeting?

Your tax structure

• How does my tax structure provide asset protection? My current structure was set up more than 10 years ago, and since then my circumstances have changed, but I have never had my structure reviewed, can you assist with that?

Forward planning

• I would like to focus on growing my business with a view to expansion into another location, how can you assist me with that?
• I am planning to retire in 7 years and wish to sell my business. What do I need to start doing in my business and how do I plan this, as my daughter works in the business and expresses interest in taking over the business?

Next steps

Consider the last time you spoke to your Accountant and asked questions like these, if it’s long overdue, prioritise making that contact, and follow through with this very important conversation.

Want to know more about how Bentleys can help you?

Contact Bentleys today for a consultation with one of our expert tax advisors who can offer tailored advice specific to your industry, business structure, and growth ambitions. With the right strategic tax partner, you can turn tax management from a necessary obligation into a competitive advantage. We’re here to help you get where you want to be.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.