How to know if accounting is right for you?

 The small business environment in Australia is quite dynamic. Cloud technology, which is rapidly expanding, continues to have an impact on how organisations engage with their consumers. To guarantee that they are maximising their potential, business owners should surround themselves with innovative and forward-thinking accounting specialists.

A smart tax accountant will do more than just figure out how much tax you owe for the year; they'll keep their finger on the pulse and function as a sounding board for all company choices, such as recruiting new employees, acquiring equipment, or signing a new lease.

A good accountant is a priceless asset. Here are some pointers to help you select the best accountant for your company.

Your accountant must be aware of your requirements.

Consider what services you want handled before you start looking for an accountant. You might require someone to handle your bookkeeping, payroll, BAS filing, income tax returns, cash flow, budgeting, or even just your annual tax filing. If you're like the majority of individuals, you'll be looking for an accountant that can work with your existing accounting software. You might even be considering implementing or upgrading to cloud-based software.

Even if your accountant is only performing your taxes, they must have a thorough understanding of your company in order to assist you in making informed decisions. Other things to think about are how you'll collaborate and how often you'll meet (in person, by phone), Whether or not they outsource, as well as how swiftly they reply to inquiries.

While most accountants work with a wide range of clients, some specialise in particular industries like trades, manufacturing, retail, hospitality, and construction. It's critical that your accountant has industry knowledge and is familiar with your reporting obligations.

Experience in the small business is important.

Small firms confront a wide range of obstacles. Problems can occur rapidly, causing the attention to change from cash flow to hiring to financial data required for a loan application. As a result, it's critical that your accountant has worked with small businesses in a variety of industries and formats in order to satisfy your demands.

The vast majority of small firms simply hire an accountant to prepare and calculate their income taxes retrospectively. As more small business owners look to their accountant for help with areas targeted toward business growth, such as cash flow management, marketing, hiring additional personnel, and expanding into new locations, the accountant's function has evolved into that of a business advisor. A competent accountant should be able to provide guidance.

Qualifications in Accounting and Bookkeeping

Their professional skills are an important factor to examine, but one that is frequently disregarded. An accountant must be qualified and registered with the Tax Practitioners Board, as well as possess the necessary tertiary education. Your accountant should have both the technical and soft abilities to finish your return and to effectively explain them to you.

Accountants who prepare and file tax returns are required to be registered. You can check the tax agent registry here to see if the possible accountant you've picked is registered.

Many bookkeepers who aren't registered or who are family friends of the business owner have come across us in our experience in the field. See here for a list of reasons why this could end up costing you more money and time. 

Cloud Technology: Xero, MYOB, STP, and Time-Saving

The advantages of cloud technology are numerous, which is why it is gaining popularity. Remote data access, workplace flexibility, data security, and a variety of additional features, such as electronic invoicing, are just a few of the advantages. You will need access to your accounting data at all times, and your accountant will need to be able to swiftly access it in order to discuss important concerns.

At the moment, the leading cloud accounting software providers are Xero and MYOB. This represents a shift away from MYOB's sole domination in the 1990s and 2000s. We believe that real-time data is beneficial to all organisations, and we base our practise on demonstrating the advantages of regular talks with your accountant.

It's Necessary to Communicate With Your Accountant

For any business concerns, your accountant should be the first person you call. It's critical to learn who you'll be working with on a daily basis. What if they're on vacation? Is there a support system in place to help you? Smaller companies may pair you with a partner who is a better fit for you as you attempt to form a long-term partnership. Larger companies may not be able to provide this level of personalization.

During initial discussions, it might be difficult to judge an accountant's response. When you contact them as a possible client, they should return your calls and emails immediately. If they don't, it might be a foreshadowing of things to come. Accounting firms that are good employ a "within 24-hour" approach, which means they will do everything they can to return phone calls and respond to emails within that time frame.

Another important aspect of communication is language. The vocabulary involved with taxes can quickly become very confusing. You do not need to be an expert, but your accountant must explain everything to you in layman's terms so that you comprehend everything. Failure to do so makes communication difficult, resulting in an unprofessional and unhelpful conversation that might stymie your accounting operations.

 

If your accountant can't readily and quickly explain tax and accounting numbers to you, it's extremely probable that they won't be involved with your work until the conclusion.

Last Thoughts

One of the most important decisions a small business owner will make is which accountant to hire. Take your time in your search; don't jump into a relationship just because it's tax season. Plan ahead of time and examine your requirements. This is a critical juncture in your company's growth... don't put it off until it's too late.

 

Please call us on 1300 762 329 if you are seeking for an accountant or think it's time to make a change. Auditax Accountants is ideally qualified to support your small business, with over 23years of combined expertise dealing with a varied range of clients.

click here - 

• how to manage your small business cash flow effectively?
• What are the best small-business tax accounting outsourcing firms?