Is it easy to switch from my current accountant to another small business accountant?
When you run a small or medium-sized business, your accountant plays an important role. In addition to helping you stay on top of your BAS and your tax obligations, your accountant should be able to help you create a plan to increase your profits and secure the future of your business.
If you feel that your accountant is not giving you the proper guidance to optimize your financial performance and financial position, you may want to consider changing your accountant. You can change your accountant at any stage of the fiscal year.
Why switch to another small business accountant?
Your accountant plays such an important role in your business and should work with you on the following:
- Business forecast – To help you plan ahead and create budgets and cash flow forecasts
- Profitable dissection – By examining your sources of income, your accountant can identify where to focus to increase revenue
- Expense analysis – Break down the costs of running your business to see where you can potentially save money
- Wealth advice – What areas of the business should you spend money on and how can you make your assets work for you?
- Liability analysis – What parts of your business are holding you back financially?
- Regular financial health checks – A good accountant will stay in touch with you throughout the year, not just at tax time, to make sure you are on budget and on track to achieve your goals.
- Education – To allow you to clearly understand what is happening with your numbers.
- Future planning – You and your accountant should work to form a long-term strategy for the business, including selling or liquidating the business so that you can retire.
If your accountant doesn’t cover the points in the table above, there are likely several areas where your business could improve financially. In this case, it is a good idea to consider a new accountant.
Before looking for a new accountant, take the time to do a little research. In addition to meeting the above criteria in terms of managing your finances on a day-to-day basis, there are a few things to ask yourself about what you want from your accountant:
- Communication requirements – Do you expect your accountant to respond quickly to your calls?
- Expertise – Are there areas of your business that you need your accountant to focus on?
- Reliability – Will your new accountant meet the delivery deadlines?
- Technology – Does your accountant use software that will integrate easily with your systems?
- Values – What are the counter values? Are they aligned with yours?
How to change small business accountants
Before moving to a new provider, ideally you should tie up all your loose ends with your current accountant.
Please select your new accountant before proceeding as you will need to contact your old accountant.
From there, it is time to break the news. You can choose to call your current accountant and explain that you are moving forward. If they are professionals, they will part with you on good terms and wish you well.
It is your new accountant’s responsibility to contact your old accountant to request a transfer of your financial information. In Australia, it is good ethical practice for your former accountant to comply with and release the information.
Once your new accountant has your figures and financial statements, make an appointment for both of you to review your business. Now is the time to explain your trouble spots. Talk about your business and personal goals so your accountant has a clear idea of what you are struggling with.
Starting a relationship with a new small business accountant can be overwhelming, especially if you know your finances are not in tip-top shape. However, there is no better time than the present to get on the right track and prepare for financial success in the future.