Written By
Jon Mailer
CEO & Founder – PROTRADE United
Author of ‘Not Just a Tradie’
Written By
Jon Mailer
CEO & Founder – PROTRADE United
Author of ‘Not Just a Tradie’
When you think of your accountant, words like “reliable,” “advisor,” and “expert” may come to mind. After all, your accountant is ideally trained to assist you with managing your financial reporting, ensure you comply with tax regulations, lodging tax returns and to advise you on financial strategies and cash flow.
But possibly your accountant could be holding your business back?
How Your Accountant Could Be Sabotaging Your Business
How Your Accountant Could Be Sabotaging Your Business
The traditional ‘accountant-business’ owner relationship can become complacent. Sometimes it has been a family friend, or the same accountant has been in place for many years. Without a proactive input from an accountant, your business may be suffering. Here’s how your accountant might be inadvertently sabotaging the progress of your business, and some suggestions on what to do about it.
A quick disclaimer. If you are a proactive, client focused and innovative accountant then this article may not apply to you!
Many accountants are trained to focus primarily on compliance: preparing and lodging tax returns, managing payroll, preparing financial statements and ensuring your business is financially compliant. While this is important, it barely scratches the surface of what your business may need.
A forward-thinking accountant should act as a strategic advisor, helping you with the following:
If your accountant only shows up at tax time, and is focused primarily on compliance and minimising tax, it’s time to rethink the relationship.
The trade and construction industry operates differently from other sectors, and again differently in the various states and territories. Managing fluctuating material costs, costs to employ, seasonal work, and project-based revenue models requires a deeper understanding of industry-specific financial management. Financial and regulatory reporting can also vary depending on your industry and location.
If your accountant treats your business like a generic retail or service operation, then they may miss critical reporting requirements and/or financial opportunities to optimise your businesses position.
Many accountants are naturally conservative, often advising clients to play it safe. This can look like minimising operational expenses and product or geographical expansion. Whilst caution has its place, excessive risk aversion can stifle growth and innovation. As a business owner, you need someone who understands when calculated risks are worth taking, and then having your accountant provide support around monitoring that risk.
Investing and borrowing money can boost future financial gains if managed well, and when operating expenses are managed effectively, they can also provide a solid return. An accountant that helps you look at all the upsides as well as manage the downsides is a great adversary for your business.
Written By
Jon Mailer
CEO & Founder – PROTRADE United
Author of ‘Not Just a Tradie’
Australia and New Zealand’s #1 Business Coaching and Advisory Organisation, dedicated to the Trades and Construction Industry. With over 20 years of practical experience, we have a proven track record of helping more than 3900 business owners gain greater clarity, consistency and choice.
Australia and New Zealand’s #1 Business Coaching and Advisory Organisation, dedicated to the Trades and Construction Industry. With over 20 years of practical experience, we have a proven track record of helping more than 3900 business owners gain greater clarity, consistency and choice.
A common complaint among business owners is that their accountant speaks in jargon that they don’t understand and/or fails to or delays to communicate critical financial information clearly. If you’re not getting the information you need to make informed decisions, or you are not able to understand what it means then your business could suffer.
A quality account recognises that financial education plays a key part in helping their clients become financially well organised, and the ‘over’ communication is the key to supporting their clients.
If you can relate to any of the above scenarios, then it may be time to ‘disrupt’ the relationship you have with your accountant and seek advice elsewhere.
1. To begin with, take full responsibility for the financial position of your business. You may have been let down and disappointed with a previous accountant, yet if you don’t own it, you can’t change it. Commit to becoming financially well organised and fluent in the language of business financials.
2. Ensure that the accountant you choose is going to challenge you. They ideally will ask about the vision you have for your business, and what is the long-term outcome that you wish to achieve. This may be to maximise valuation to sell. It could be to step away from the business to receive a passive income, or even just be profitable with a small team. The right accountant will help you with a business structure to maximise your financial Return on Investment (R.O.I), not just ‘do your return’.
3. Ask your accountant to meet with you more than annually to assist in keeping your business ‘on track’ financially. Regularly scheduled meetings to discuss your financial performance and to help educate you around the financials can be a game-changer.
4. Work with an accountant who has significant experience in your industry. They should understand how to manage project cash flows, negotiate better supplier terms, and leverage tax incentives specific to the trade and construction sector.
5. Challenge your accountant to present both conservative and growth-oriented financial strategies. Make sure they understand your long-term goals and are willing to support bold moves when justified by sound data.
To assist in finding a great accountant for your business, contact the team at PROTRADE United. We are aligned with industry specific accountants that know the financial requirements of our clients.
For more assistance, please reach out to the team at PROTRADE United.
A common complaint among business owners is that their accountant speaks in jargon that they don’t understand and/or fails to or delays to communicate critical financial information clearly. If you’re not getting the information you need to make informed decisions, or you are not able to understand what it means then your business could suffer.
A quality account recognises that financial education plays a key part in helping their clients become financially well organised, and the ‘over’ communication is the key to supporting their clients.
If you can relate to any of the above scenarios, then it may be time to ‘disrupt’ the relationship you have with your accountant and seek advice elsewhere.
1. To begin with, take full responsibility for the financial position of your business. You may have been let down and disappointed with a previous accountant, yet if you don’t own it, you can’t change it. Commit to becoming financially well organised and fluent in the language of business financials.
2. Ensure that the accountant you choose is going to challenge you. They ideally will ask about the vision you have for your business, and what is the long-term outcome that you wish to achieve. This may be to maximise valuation to sell. It could be to step away from the business to receive a passive income, or even just be profitable with a small team. The right accountant will help you with a business structure to maximise your financial Return on Investment (R.O.I), not just ‘do your return’.
3. Ask your accountant to meet with you more than annually to assist in keeping your business ‘on track’ financially. Regularly scheduled meetings to discuss your financial performance and to help educate you around the financials can be a game-changer.
4. Work with an accountant who has significant experience in your industry. They should understand how to manage project cash flows, negotiate better supplier terms, and leverage tax incentives specific to the trade and construction sector.
5. Challenge your accountant to present both conservative and growth-oriented financial strategies. Make sure they understand your long-term goals and are willing to support bold moves when justified by sound data.
To assist in finding a great accountant for your business, contact the team at PROTRADE United. We are aligned with industry specific accountants that know the financial requirements of our clients.
For more assistance, please reach out to the team at PROTRADE United.
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