As an entrepreneur, you’ve probably heard the word accountant thrown around quite a bit. Maybe you even have one in your business already! But do you really know what this important role entails, or how to work with an accountant who can help your company succeed? Here are five mistakes to avoid when dealing with north wales accountants.
1) Understand Your Money Flow
Did you know that you can be making money and not even realize it? Not only that but if you’re not paying attention, there are a lot of ways in which money can slip through your fingers. It doesn’t have to be that way though. There are a few financial tips every business owner should keep in mind when dealing with their accountant. First off, it’s important to understand your money flow. In other words, it pays to know how much cash is coming into your business each month and how much is going out.
2) Speak Up If Something Is Not Clear
One of your tax accountant’s jobs is to make sure you get every deduction you deserve. But if your mind isn’t on taxes or you don’t ask enough questions, mistakes can happen. Make sure your accountant knows which expenses are yours and ask questions along the way, such as: How much will I owe when it’s all said and done? What kind of return should I expect? Is there anything else we need to do before the deadline? Keep in mind that even if you know something about taxes, an expert might spot an item you miss. If something doesn’t seem right at tax time, speak up! You might be saving yourself a lot of money in interest and penalties if your situation is fixed before it goes into collections.
3) Educate Yourself
If you have an accountant, it’s important that you understand what they do for you. A lot of people have basic questions about taxes, but many don’t ask these questions until after they file their taxes because they are afraid that their accountant will think that they are stupid. Educate yourself by taking advantage of free seminars offered by your CPA firm or financial institutions. Ask friends and family if they have any recommendations for a good business in your area, or follow online reviews to find an expert who fits your needs. You want someone who is well-organized and detail-oriented—someone who will make sure you don’t miss any deductions or omissions on your return.
4) Communicate Regularly
If you have questions about your finances, schedule time with your accountant to get them answered. Procrastinating can lead to less-than-ideal answers and possibly missed opportunities. For example, if you’re not sure whether or not you should change jobs or start a business, don’t hesitate to ask your accountant for advice. He or she may be able to look at what you make now compared with what similar professionals are making in your area, analyze their career trajectories and suggest paths that could help you increase your income in both roles—in addition to others. Putting off these kinds of queries is never a good idea.
5) Conduct Queries Promptly
An important aspect of managing your finances is having complete and correct data. If you can’t rely on information from your financial providers, then it becomes difficult to make any decisions about your spending and saving habits. For example, if you receive incorrect information from a bank regarding how much interest you’re earning on an account, then there is no way for you to be sure that you’re not missing out on extra interest income. This means that if one of your goals is to save as much money as possible each month, it will be harder for you to make sure that those savings are happening as planned if inaccurate figures are coming through from your bank.