How to get the best from your most valuable business adviser

Whenever we ask businesses to identify their most valuable and trusted source of business advice, their consistent number one choice is an accountant.

Business owners of all sizes trust their accountant to provide not just information on compliance and legislation, but also – crucially – advice on how to improve business performance.

This makes real sense – what other business professional has that level of understanding of your business (who you happily share so much information with)? And – because they are usually someone working in your local community – who else has such a great insight into local business, and the performance of other, similar businesses in your market?

Unfortunately, although we know levels of trust are high, not enough businesses make use of their accountant in this way. Instead they see them once or twice a year to manage their compliance requirements, and don’t think of them again until the next reporting period.

Part of the reason behind this may be the way business owners form a relationship with their accountant. As with any business relationship, setting up the right structure and expectations from the outset can make all the difference to the level of success you achieve over the long term.

Think of your own relationship (even the term is one we don’t hear that often!) with your accountant. Did you go into it looking for a high performance business consultant with key results in mind, or were you trying to find someone to do the books? If you did the former, it’s likely you are seeing real improvements in your business – something which the findings of the MYOB Monitor also support: businesses that work closely with their accountant tend to enjoy greater financial control and improved revenue.

If not, it’s not too late to change the way you work with your accountant – and we know from our work with over 80% of accountants in practice in New Zealand that they would likely welcome the opportunity.

To get you started, here are some simple things to think about when ‘auditioning your accountant’:

Start with some research

Put together a referral list of a number of  accountants in your area. Do some research on them – ask friends and colleagues (the second most trusted source of business advice for Kiwis) who they’d recommend and why; look at the list of services they offer and how they promote their own work; and consider whether their business would fit with yours.

Build a short list and get to know them

While you don’t have to be BFFs with your accountant, this is someone who you need to trust with your business – so while you’re meeting with your key choices, it pays to think about whether this is someone you’d be happy to work closely with.

 

And for either your new or existing accountant:

Ask how they are going to help you achieve your goals

Based on what you want to achieve for your business, what would their plan be to help your business grow? (If you are comfortable doing so, ask for a short proposal in writing). What do they know about businesses like yours, and can they make any suggestions that could make an immediate difference?

Get them to make a regular benchmark assessment

What do they know about how your business compares to other, similar businesses – including your competition? What do they think you could do differently to make significant improvements?

Set goals and plan

Your accountant can only make a difference to your business if you commit to working with them, and using their skills in the best way. So make regular time to plan ahead with your accountant, and create a set of performance measures that you can both use to monitor progress.

With the 10-11 end of financial year done and dusted, it’s a great time to re-evaluate your relationship with your accountant. And it may also be a great opportunity to take a fresh look at your business goals and how your accountant can help you achieve them.

 

Emma Mulquiney | Online Editor | MYOB