As a business owner, your accountant is one of your most valuable advisors. They don’t just handle taxes and bookkeeping—they provide insights that can help you grow your business, manage cash flow, and stay compliant with financial regulations. But are you making the most of your accountant’s expertise?
Here are some key questions you should be asking to ensure you’re getting the best financial guidance:
1. How Can I Reduce My Tax Liability?
Nobody wants to pay more tax than they need to. Ask your accountant about tax-saving strategies, deductions you may not be using, and whether your business structure is optimized for tax efficiency. A proactive approach can save you significant money.
2. How Healthy Is My Cash Flow?
Your business might be profitable, but if your cash flow isn’t well managed, you could still struggle to cover expenses. Your accountant can help you analyze inflows and outflows, identify cash flow bottlenecks, and suggest ways to improve liquidity.
3. Am I Priced Correctly for Profitability?
Many businesses underprice their products or services without realizing it. Ask your accountant if your pricing strategy aligns with your costs, market trends, and profit goals. They can help ensure you’re maximizing revenue while remaining competitive.
4. Are There Any Financial Red Flags in My Business?
Your accountant has access to your financial records and can identify warning signs—such as high expenses, declining profits, or excessive debt. Regularly reviewing your financial health can help you catch and fix problems before they escalate.
5. What’s the Best Way to Structure My Business?
Whether you’re a sole proprietor, partnership, or company, your business structure affects taxation, liability, and compliance requirements. Ask your accountant if your current setup is still the best option as your business grows.
6. Can You Help Me Create a Budget and Financial Plan?
A solid budget helps you control expenses and plan for the future. Your accountant can help you set realistic financial goals, allocate resources effectively, and create a plan that supports long-term success.
7. What Are My Key Financial Ratios and What Do They Mean?
Understanding financial ratios like profit margins, debt-to-equity, and return on investment can give you a clearer picture of your business’s financial health. Ask your accountant to break these down and explain how they impact your decision-making.
8. What Are My Options for Raising Capital?
If you need funding to grow your business, your accountant can help you explore different options—whether it’s securing a loan, attracting investors, or reinvesting profits. They can also advise on the financial implications of each choice.
9. Are There Any Changes in Tax Laws That Affect My Business?
Tax laws change frequently, and failing to stay updated can lead to compliance issues or missed opportunities for savings. Ask your accountant about any new regulations that could impact your business and how to prepare for them.
10. How Can I Prepare for the Future?
Whether it’s planning for expansion, preparing for an economic downturn, or even considering succession planning, your accountant can help you build a financial strategy that supports your long-term goals.
Your accountant isn’t just there to file taxes—they can be a key partner in your business’s success. By asking the right questions, you can gain valuable insights, make better financial decisions, and set your business up for long-term growth.
While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither the writer nor the publisher will bear any responsibility for the consequences of any actions based on information or recommendations contained herein. Our material is for informational purposes.
