Another busy tax season is in the books. You’re probably tired of even talking about the subject, but having a great accountant as part of your team of advisors is critical to success as an entrepreneur.
A great accountant:
- Provides you with proactive business advice, not just historical financial statements and compliance tax returns.
- Makes introductions to his or her professional network, such as a banker, lawyer, insurance agent, and others who can help you with your business.
- Gives you a structured accounting system that shows your gross profit by product and service line.
- Is highly accessible to take your calls, responds quickly, and isn’t overwhelmed with a high volume of low value personal tax returns.
- Educates you on the importance of cash flow, profit, and building equity.
- Explains how to use your financial statements as a monthly management tool.
- Doesn’t minimize your taxes at the expense of building equity to fund future growth, because increasing profit is more important than decreasing taxes.
- Asks you questions instead of just answering your questions.
- Shares ideas from other industries and businesses.
- Doesn’t charge by the hour or the minute.
- Doesn’t have files piled all over the floor.
- Focuses on maximizing your profit and after-tax cash flow.
- Practices what he or she preaches, is happy, treats staff members well, and has a thriving business.
- Has happy, profitable clients who are growing their businesses, paying their taxes, and building wealth.
Phil’s bottom line: a great accountant will work proactively to structure your business for long-term success. Like any important relationship, however, this success is based on two-way communication and mutual respect.