A good accountant knows your business and his business well. He does his homework to make sure that he stays up-to-date on the latest accounting rules, regulations and ways to improve his services. Your accountant should understand financial management and how to maximize profits.
So what does he need from you in order to get the best results for your business?
Make Agreements About Expectations
At the most basic level, accountants should ensure your company meets tax deadlines and complies with regulations and guidelines. They should also work to help you reduce your organization’s tax burden.
You should expect your accountant to meet with you and review all of the possible deductions available to you. You should also be prepared to provide documentation requested to support these deductions and your overall tax return.
Ideally, your accountant should also provide you with post-season tax advice on your business practices or record keeping to help maximize your tax savings.
Accountants can also help you with financial statements. These include your cash flow statement, income statement and balance sheet.
Some accountants may also be able to help you make choices about your financing and how much debt your company can carry.
Decide How Often to Meet
This depends on how much work your accountant will be doing for you based on the above expectations, but two meetings per year would be the minimum for any professional accounting relationship.
A mid-year meeting should assess the status of your business, your tax planning and your financial management practices.
A post-tax season meeting is also advisable to determine new tax saving strategies for the upcoming year.
Phone consultations throughout the year are essential to making sure that you and your accountant are on the same page and that you can get any questions you have about your taxes or other accounting services answered.
Be Prepared to Fulfill Requests for Documentation
An accountant can only crunch the numbers he’s presented with. The more accurate and organized the information you provide about your company, the more your accountant can help reduce your tax burden.
Your accountant should help you implement systems to manage your records on a regular basis. Then several weeks before your meeting, you should request a list of the documentation that will be needed.
During the meeting, you and your accountant may determine other documentation may be required, so you should be prepared to take notes on those items and present them at a later date.
To speak with a Beaton Accounting representative for more information about what your accountant should do for you, call us today for a FREE consultation: 631-921-6894.
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