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
Back when I owned an inventory-based business, one of my... Read More
Disclosure laws in franchising are suppose to help the consumer.... Read More
This morning, I went to take a short walk outside.... Read More
Senior citizens are generally not a large marketing segment for... Read More
Washing manufactured homes, mobile homes, can be a lucrative and... Read More
You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More
If a customer owes your local business money, it's hard... Read More
That sizzling sound you're hearing may be a symptom of... Read More
Are you a motivational speaker who consistently gets rave reviews... Read More
Incorporation in Nevada has become an attractive option for savvy... Read More
With all the cabinet refacing business opportunities out there, you... Read More
Now that winter has passed, the annual ritual of spring... Read More
Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites... Read More
What could Seinfeld possibly have to do with marketing a... Read More
One of the biggest fears people have about starting a... Read More
Image of your franchise automotive outlet is so important. Some... Read More
If your home business is not performing the way you... Read More
When is it a good thing to say no to... Read More
To get approval for your small business loan application, you... Read More
Has this ever happened to you... 'John, you have a... Read More
During the California Recall Election, I was very interested. Without... Read More
Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More
The Boston suburbs seem to be rich with possible locations... Read More
Traditional advertising methods are still being used for almost 90%... Read More
You've heard it before; we're living in an information age.... Read More
In today's economic climate, the first priority for the small... Read More
In a quest for customers and to keep those customers,... Read More
There is a great deal of abuse going on in... Read More
Like most regulatory bodies in the United States, the Federal... Read More
Concrete Roof Tile Business: During the 2004 summer season, storms... Read More
In the first article we mentioned the main characteristics that... Read More
In this series of articles I'm going to show you... Read More
You may find this Newsletter a little long winded but... Read More
Doesn't it frustrate you when you've given good service, sometimes... Read More
To maximum potential profits and dollars in a mobile washing... Read More
As long as you eat and breathe you will stay... Read More
If you're looking for start-up capital for your business, but... Read More
One major issue not being addressed right now in the... Read More
North County San Diego has had some significant growth, and... Read More
Summer is a time for the outdoors, for that well-deserved... Read More
As a solo entrepreneur or small business owner, one of... Read More
Having their own business is something many millions of people... Read More
Attorneys and Lawyers are ruining the franchise industry. It is... Read More
We were more than excited. Our women's doubles tennis team... Read More
Incredible as it sounds, you have a goldmine of free... Read More
The FTC Franchise Rule maybe changed, as the Federal trade... Read More
Essentially there are 5 tremendously powerful methods to make money... Read More
Franchising has made the world look really small. The well... Read More
Sexual Harassment is a disturbing part of employment life in... Read More
As stability emerges in the Middle East there will be... Read More
As a franchisor I am always asked by new and... Read More
What does buying a fat pig have to do with... Read More
There are many choices when thinking about a small business... Read More
As small business owners we're in business to make money... Read More
1. There Are No "gimmes" ? They count two-foot putts... Read More
When it comes to cost, how much can you afford... Read More
Recently one of my customers told me the chaos swirling... Read More
Each day we hear of companies entering the franchising industry.... Read More
TACTIC #1 -- Never simply slash your prices, unless you're... Read More
In general, all of us know how to accomplish the... Read More
What are the benefits of using a Freelance Consultant /... Read More
Self-cleaning glass has been talked about a lot, with such... Read More
One of the primary concerns all small businesses have is... Read More
Continuing from the second article:6. About the aground mathematical model,... Read More
Don't you find that there are so many decisions you... Read More
Yes, that IS security when nobody can downsize you because... Read More
Small Business |