3 things you must ask your accountant
While hiring a great accountant is an important task for your business, it's only the first step. If you just sit back and leave them to it, you might not be getting all the insights and guidance you could from them. An effective accountant-business relationship is a partnership, and you need to be proactive and engage with your financial team in order to fully utilise their expertise. Here are three of the most important questions you should ask to get the most out of your accountant.
1. What is my break even point?
Regardless of your other objectives, running a business is always about making money to some extent, so it's a good idea to know the boundary where your sales will cover costs, beyond which you will be able to generate a profit. This point can be difficult to identify on your own, as costs are not always fixed and market values can vary. Having your accountant work this out can save you a lot of stress and guesswork. From there, you will know what you need to do to manage your revenue and expenses in order to make your operations more profitable.
2. How can I improve my cashflow?
Knowing your financial state is one thing, but you should also have an idea of what to do with it. All business owners understand the importance of monitoring cashflow, but you don't have to accept your circumstances as they are – there are things you can do to improve the cashflow of your business and help it to become more healthy and resilient. The Small Business Development Corporation says that being aware of any cashflow issues you may have will tell you if you need to chase up debtors and tighten payment time frames.
3. How can I prepare my business for growth?
While knowing what you are facing right now is certainly important, perhaps the biggest value of financial insight is it's ability to inform future strategy. Don't use your accountant as record of the past, take advantage of their advisory skills to envision a path for future expansion. Ensure your accountant understands your long term goals and objectives so they can help you develop a plan to get there.
Getting great results from financial advice starts by getting an experienced professional with the right skills for your business, so talk to a recruitment consultant at Durno Recruitment to find out how you can source suitable talent.