Small Business - Would You Still Need An Accountant If You Didnt Need A Tax Return?

After over thirty years advising small business it still comes as a surprise to see the number of small business owners who are only interested in their financial results when it is time to do their tax return.

Many still think that their accountant is there to 'cook the books' at tax time!

It is not surprising that almost invariably the business owners who approach their accounting in this way are those whose business is not doing well.

Three out of five businesses fail within the first three years owing to a lack of proper business planning and record keeping and many of them are those proprietors who adopt this 'once a year' method of accounting. That's why they never improve.

Today's accountant is more than just a 'bean counter'. The new breed has developed expertise in many areas such as marketing, management, industrial relations law and computers. Indeed, the 'number crunching' that was such a large part of the accountant's life has been largely taken over by computers. There is now no excuse for not receiving meaningful reports when they do actually mean something and not three months after the end of the period.

Making business decisions has always been difficult. Small business owners without the resources of large firms have always needed to stretch beyond the limit of their expertise in making many decisions. That's what makes managing a small business so exciting. That's what makes it so dangerous too!

Seminar participants say, "My accountant knew all the answers, "but I didn't know all the questions". Time after time our new clients tell us that they are seeking an accountant who will give them good advice when they need it - not when they ask for it!

But in a small business the buck stops with you, if you are not receiving the service you want - don't just ask for it ? insist on it!

One of the problems is knowing what to ask for! Your advisors should anticipate your need and supply you with what you need before you need it.

A new trap for small business proprietors that is becoming increasingly prevalent is for those who computerize for the first time. Many of the packages claim that you do not have to have any accounting knowledge to operate them and sales people use this as a selling tool. It is a half-truth at best!

Just knowing how the pieces move doesn't mean you can play chess and we are seeing an increasing number of proprietors who have computer generated financial statements which are meaningless for tax purposes and give misleading information for management purposes.

This isn't the fault of the computer package or the operator using it. It happens because the operator doesn't know or understand some of the accounting principles necessary to make the system work.

Computers are supposed to make it easier but they are like any other tool which relies on the skill and knowledge of the operator. Your accountant should be involved in the initial planning regarding the requirements of the business. He/she should also be involved in the installation and training of the operator so that this valuable tool is used to the advantage of your business.

Remember, good advice doesn't cost, it pays!

About the author Kelvyn Peters CPA is one of Australia's longest serving Tax Agents. He was registered in 1962 and accepted as a CPA in 1964.

He is well-known speaker and educator and is famous for his ability to rescue ailing small businesses.

http://profitstrategies4business.com

---

Top Ten Resolves for Building Your Business in 2005

1. Resolve to build a consistent network system.Since referrals are... Read More

5 Steps To Success for Small Business Owners

Everyone wants to succeed in life. Most people want to... Read More

When to Say NO!

When is it a good thing to say no to... Read More

The Wrap on Ag Plastic

While driving through Pennsylvania farmland, you have probably noticed an... Read More

Home Based Franchise; What About Future Expansion?

As a franchisor I am always asked by new and... Read More

Essex Accountant: Accountancy Firm MVP for Your UK Business?

Most business owners know when they need an accountant, but... Read More

Keep TRACK of your Business Relationships and Gain Profits

How do you know when an alliance needs to be... Read More

Loose Lips Sink Ships - The Fastest Way to Put Yourself Out of Business

I agree that knowledge should be free, but the next... Read More

Small Business Credit Card Advantages

Obtaining a business credit card enables the small business owner... Read More

Todays Chef, Tomorrows Restaurateur -- Startup Tips by Restaurant Consultants Inc

Researching information for a recent business plan, I came across... Read More

Deciding Which State To Incorporate Your Small Business In

Once you've decided to incorporate your small business the next... Read More

1-2-3 Steps To A Successful Joint Venture

A successful joint venture marketing effort is the goal of... Read More

How To Make Sure Your Customers Still Trust Your Small Business

The stock market is still on a wild roller coaster... Read More

Pressure Washing; How to Bid Concrete Cleaning Jobs

Remember the cleaning business is all about time ratio to... Read More

Shortcuts Will Kill Your Business

Think of your business as a living, breathing, organism. It... Read More

Franchise Companies Come and Go

Each day we hear of companies entering the franchising industry.... Read More

Concrete Cleaning Discussed at World of Concrete Expo 03

If you are in the pressure washing business and are... Read More

Small Business Success Tip: Learn Something New Everyday

Your grandfather probably told you to "learn something new everyday".... Read More

Family Business and Conflicts

What is a Family Business? A family business is basically... Read More

Fleet Washing Expansion Considerations

Many times small businesses want to expand their businesses and... Read More

Find Some Sample Payroll Check Stubs on the Net for Easy Reference

Starting a business? For many people, the bravery to venture... Read More

Maintaining Your Carpet Extractor in Your Auto Detail Shop

Auto Detailing: Maintaining A Commercial Carpet ExtractorYou should drain your... Read More

FTC Franchise Rule if Enacted will Trigger Hardship for Private Sector

The FTC Franchise Rule maybe changed, as the Federal trade... Read More

Yeah, It IS Lonely At the Top

Sometimes when you run a business you feel as lonely... Read More

How to Effectively Design Your Business Image

In many industries, image is one of the last things... Read More

Small Business Success: Thriving During Change (And Landing On Your Feet!)

If I had $1.00 every time I heard someone say... Read More

Got Stimulation?

An observation while returning home from a seminar: Getting away... Read More

Motorizing for Profit - The Craftsmen Have Left the Building

In the summer, I can't drive two blocks without seeing... Read More

Basic Psychology of Franchisee Ownership and Expansion

If you are a franchisee of a large franchise system;... Read More

An Example of Business Automation - eCards with pizazz

The last time I spoke and went into a bit... Read More

Starting Your Small Business

Where do you find more customers?How do you compete with... Read More

How Mastering 5 Essential Money Making Ideas Can Lead Your Business to Longterm Cashflow

Essentially there are 5 tremendously powerful methods to make money... Read More

Three Big Barriers To Small Business Marketing Success

When you feel like you're always busy working on your... Read More