12 Questions to Ask Your Accountant
It’s June and you know what that means? You guessed it! The end of the financial year is quickly approaching. Your inbox and social feed is about to get bombarded with special EOFY sales as retailers try to move stock before June 30 hits along with emails reminding you to get ready for tax time but do you know the one thing you need when it comes to getting it right at tax time? A darn good accountant! So how do you actually find the right accountant anyway? Here’s 12 questions to ask any prospective accountant to help you work out if they’re the right fit for you!
When looking for an accountant nothing beats a good word-of-mouth referral. So ask your savvy friends and business buddies (if you’re a business owner, that is) for a referral. The other thing to do is check their credentials. In Australia, to become an Accountant, you need a qualification such as Bachelor of Accounting, Master of Professional Accounting or you need to complete a Certified Practising Accountant (CPA) program. Also check if they’re a part of any professional accounting bodies. Finally, be sure to check out 3-5 accountants before choosing one. It will help you get a feel for who is the most suitable for you.
When meeting with a prospective accountant be sure to ask a consistent set of questions so you can properly compare them. The following questions will help you get to know them better and understand how they might be able to help you.
1. How often can I expect to hear from you and how will we work together?
This is a great one for understanding the type of communication (email, letters, face to face meetings or virtual meetings) and how often you should expect to hear from your accountant.
2. What kind of services and advice can I expect from you?
Is this individual purely a tax accountant, do they provide book keeping services (business owners) or can they offer strategic advice too?
3. Is there anything in particular that I should be consulting you about?
Accountants are great for giving you advice ahead of time but if you come to them after you’ve made a particular decision or transaction, they’re often limited in how they can assist. Depending on the type of advice they’re giving you consider speaking to them before you set up a new business, make an investment or sell an investment so they can tell you ahead of time what the implications may be and help you to optimise your outcomes.
4. How will you help me prepare for the tax season?
Will your accountant simply file your return or will they help you ahead of time by giving you a guide on what you can expect to pay in tax and what types expenses you can claim?
5. What type of clients or advice do you specialise in?
Some accountants will specialise in individual clients and employees, some might specialise in business owners with complex structures whilst others specialise in high net worth individuals or expats. Find out what’s your accountant’s speciality and if you fit their target demographic.
6. What are your most successful clients doing?
This can be a great question to ask to understand your accountant’s client base but to also give you some ideas and inspiration for your own wealth creation journey too.
7. How do you price your services?
This can vary greatly from one accountant to another. Some will charge a flat fee, some charge by the hour, others might take a cost-plus approach. Ask you accountant for an indication on what you should expect to pay to save any surprises down the track.
Heads up - the next few questions a for the business owners amongst you!
8. How will you help me to optimise my business’ financial performance?
Sometimes we’re so busy running our business that we don’t always get a chance to sit back and analyse the opportunities available to improve our business. That’s where an accountant can really help. They might be able to provide guidance on how to reduce your expenses, eliminate underperforming products, negotiate better terms with a supplier or help you maximise your pricing.
9. How will you help me grow my business?
A good accountant can help you with business growth from preparing financial forecasts, to identifying areas for growth, preparing budgets that support your growth goals or even help you prepare for audits. If you’re wanting help to grow your business asking your accountant about what they can do to assist you on the journey can be a great place to start.
10. How will you help me assess the risk and opportunity of certain financial decisions in my business?
Sometimes running a business can be lonely and overwhelming. You want to know you can lean on your accountant for support, especially when it comes to big decisions. Ideally with their financial expertise and experience working across multiple clients, they should be able to help you assess the risks and opportunities of particular business decisions. Ask them how they do this for other clients as a way of vetting their potential to support you in this way.
11. Can you help me assess the overall value of my business?
Putting a value on your business can feel like a mix of art and science. An accountant should be able to offer some expertise here and apply as well as explain various methodologies for valuing your business
12. Can you tell me if there are any special considerations for my industry?
Businesses in different industries come with their own unique accounting issues. Your accountant should be knowledgeable about the various ones that specifically apply to yours.
And, finally, a bonus question I always think is worth asking your accountant is ‘what are some common mistakes you should avoid when working with them’? Not being 100% honest is usually a big tip or not consulting them ahead of time is another. Put it to your accountant and see what they say!
Let me know if you find this list helpful or if there’s anything you would add to it by commenting below!