4 Topics You NEED To Be Discussing With Your Accountant
Understanding your financial health as a trade business owner is absolutely CRITICAL to your success.
Without this, how do you make informed and correct decisions?
How do you know if you can afford to employ a new tradie or admin staff? Buy a piece of equipment? Buy a new truck? The list is endless…
To gain this knowledge, you need an awesome accountant in your corner.
So…what information can they provide you with to help you make informed decisions?
1. Expenses & Payments Due
Monitoring your outgoings is critically important to your cash flow and therefore your business’ financial health.
Whilst you may be thinking “EASY! All I have to do is check on my bills every now and then…” there’s actually a bit more to it…
Discussing this with your accountant regularly can turn an overwhelming and often dull task into one that provides you with clarity, and potential opportunities to cut costs and increase profits!
Ask your accountant to create daily and monthly reports so you easily monitor and track your finances, enabling you to make quick decisions and action where necessary.
2. Discuss GOALS
Your accountant should be more than someone who grinds through reports and numbers. They should be a strategic member of your financial team.
Opt to have regular meetings with your accountant to discuss your monetary goals and devise a plan together.
For example, discussing your goal to purchase new equipment by the end of the financial year may result in a plan to increase turnover by X% and cut costs by $Y in order to be able to afford it.
3. Stay Up To Date With Laws & Regulations
Business laws and regulations are constantly changing and it’s important that you stay up to date!
If your accountant is experienced and proactive they are the best one to update you on these.
4. Defences against FRAUD
Unfortunately, fraud is all too common in life, and especially in business. But what has your accountant got to do with it?
Your accountant can actually help protect your business against fraud by ensuring your accounts up to date. This is done by performing a weekly reconciliation of all your business accounts (including credit cards), it makes it FAR easier to detect fraud in your business!
As you can probably tell, understanding your trade business’ financial situation (past, present and future), is critically important. This is best done by scheduling AND attending regular monthly meetings with your accountant to discuss the above topics and more.
Gaining clarity around these topics means you have greater control over your business and your future and also enables you to make more educated decisions as they arise.
Visit Next Level Tradie for details on our live events in August-September 2019.