Questions to ask your accountant - where do I start, right?
- Nov 08, 2022
- 20 min read
Overview
Accountants can be a little scary, let’s face it. They talk about balance sheets, P&L, accounts receivable and payable, capital, assets…
It can often feel like they are speaking another language.
They throw numbers at you and show you long reports which make your eyes glaze over.
Well, we promise it won’t happen here at Sleek.
We like to think our accountants are pretty special. Our strict hiring process not only looks at their accounting skills and education but also their communication skills, openness, patience and empathy. It is these emotional intelligence skills which make the Sleek difference.
When you’re working with your Sleek accountant the most important question, we tell our clients to ask is –
I don’t understand, can you explain it again?
Sleek accountants may sometimes explain your books in ways you don’t quite understand, so please always speak up. We are only too happy to explain it in a way so you do understand.
Also, if something isn’t working for you, tell us. That’s what we are here for.
To put you at ease, this is all included in your monthly accounting plan – you won’t be charged for every question you ask, so ask away!
Questions to ask your accountant
Now, there are a few other questions we always recommend you ask your accountant. These questions will help to decipher your business numbers behind the reports.
Your answers will become a valuable source for your future business actions.
- How much tax is my business expected to pay?
Knowing your business’ tax position helps you to plan to ensure you have enough money to pay your tax liabilities and/or put into action some strategies to keep your tax in check.
At the same time, your accountant should advise you if there are any tax updates which may affect your business. These could be beneficial tax updates (yes!) or disadvantage your business and may require you to change tack or plan for in the future.
- What is my breakeven point?
Breakeven? It’s another accounting term which means the point at which your costs and expenses equal the revenue for your product or service.
You probably calculated this before you started your business (if you didn’t, no judgement here!) but your breakeven point can shift as costs go up and down.
Why this is so important is because your breakeven point can significantly affect your profitability.
- How is my business performing?
You can see money in your business bank account, sales are coming through, and your expenses are in check.
But there’s always room for improvement and that’s where this question will highlight the areas of your business that should be your top priority.
You’ll be able to capitalise on the successes and look at what is driving your revenue.
- What are your successful business clients doing that I’m not?
Your Sleek accountant knows your business. They also analyse and understand the financial data of other businesses. They see how these businesses are performing and what they are doing well or not so well to affect this performance.
Use their knowledge to get insider information that could be valuable to your business. The advice may not work for your business but what if it did?
Discuss with your accountant using scenarios to make wise plans for your business’ future.
- What areas of my business should be my top priority?
As a business owner, it’s so easy to be distracted by the daily ongoings of your business – demanding customers, bill paying, staff issues, even the hundreds of emails appearing in your inbox. Need we say more?
A fresh pair of eyes, like your accountant, can provide the source for where you should be putting your attention, effort and time into. They can help you to realign your focus to the positives, to build on the successes, to achieve more.
Your Sleek accountant can highlight any problem areas or places where they think may become an issue in the future.
These questions will help develop and strengthen your relationship with your accountant, your trusted advisor. Directness and good questioning can open up the discussion for powerful advice and actions for growing your business.
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