If you had to make a list of some of the most valuable assets that people have access to today, their accountant would undoubtedly be right at the top.
For private individuals, an accountant is someone who can help make sure that their financial situation is in order in a way that allows them to preserve as much of their wealth as possible. They do more than just prepare taxes and field occasional questions - they help create a stable foundation that allows people to accomplish all of their financial goals.
For businesses, an accountant is someone who makes sure that the books are in order - especially once tax season rolls around yet again. This, too, can help make sure that the organization is on stable ground so that it can continue to grow and scale as needed.
But at the same time, a relationship with an accountant cannot be a passive one. If you really want to make sure you're getting the most out of this arrangement, there are a few key things you'll want to keep in mind.
Why Your Relationship With Your Accountant MattersBy far, the most important thing you can do to get the most out of your relationship with your accountant involves remembering that professionals are there for a reason.
This is especially true in the case of business owners who are typically used to doing most things themselves. Yes, that entrepreneurial spirit has carried you far up to this point - but there are certain skill sets that you just don't have. It's very likely that financial knowledge may be one of them, which is why accountants are crucial to everything that you're doing.
You're an expert at running a business - that doesn't mean you're also an expert at things like tax law. Therefore, you need to be willing to cooperate and collaborate with your accountant throughout the year. They'll need certain documentation to make sure that everything is going off without a hitch. They'll make recommendations that you should absolutely follow. You need to remain open-minded throughout this process and trust what you're being told.
For business owners, in particular, another one of the best ways to get the most out of your relationship with your accountant comes down to how you handle expenses. It would be a mistake to assume that the only business expenses that really matter are the ones that occurred after the business was formed, for example.
The Internal Revenue Service has very, very specific rules about what expenses can be counted as credits and deductions when it comes to filing your taxes. But the key thing to understand is that those expenses don't "start" once your business is formed. You need to go over everything leading up to that point with your accountant to make sure that they have a clear financial picture of what is going on with your organization. If you don't, you could be leaving a tremendous amount of money on the table.
Speaking of leaving money on the table, one of the best ways to get the most out of your relationship with your accountant involves being as clear as possible about what you want to accomplish over the long term. Are you trying to expand your business over the next several years? Do you want to open a new location? Do you want to hire a number of additional employees?
These are all things that you need to discuss with your accountant as early on in the process as you can. Your accountant will be able to look at your current situation and tell you what is realistic and what isn't. They'll also be able to help you create a plan that sets you on a path toward accomplishing the goals you've laid out for yourself.
Will you be able to accomplish those goals overnight? No - of course not. As the old saying goes, "Rome wasn't built in a day." But with the right guidance - and with a collaborative relationship with your accountant - they'll be able to make sure that you're always headed in the right direction moving forward.
In the end, it's key to understand that an accountant is more than just another services provider. They can and should be a true partner in every sense of the term - one that is just as invested in your success as you are. So long as you enter into the relationship from that perspective, you'll be able to enjoy all of the benefits of this process.
About Gordon McNamee, CPA
Gordon McNamee, CPA is an Upland based CPA who helps with small businesses, individuals and homeowner associations. A former IRS agent, he has been a CPA since 1991 offering his expertise in individual, corporate, trust, estate and payroll taxes. A specialty of his is HOA tax planning and preparation. In addition, he provides accounting and financial statements for both individuals and businesses.
