3 Red Flags of a Bad Small Business Accountant
Keeping your business accounting in order is a key part of running a business successfully. For small businesses, it is especially important to maintain your business accounting records.
Successful small businesses have a better chance of making a profit by staying on top of their business finances in a timely manner. A good accountant is your best option for dealing with taxes, legal services and bookkeeping.
With that in mind, it's crucial to assess your accountant's performance and see whether they're truly steering your business to success.
What are the Tell-Tale Signs that You Have a Bad Accountant?
Sign #1: They Always Miss Deadlines
A bad accountant pays no regard to deadlines. They allow business tasks to pile up until it is impossible to get everything done with the time left in the day. They make excuses for not getting the work done and promise to get right on it. They drag their feet on the work until they are pushed up against a deadline.
While they may be excellent at doing the work, their procrastination and lack of discipline mean they are not efficient. The business owner then has to take more time out of their day to get the work done.
This also means they are not giving the business owner enough time to keep up with other tasks. When the owner has to take over the work, it detracts from their ability to do other work. When you are being charged a professional wage, it is reasonable to expect that the work will be completed on time. If the work is always turned in late, then it is time for a change.
Sign #2: They Make Costly Blunders
A good accountant will have an in-depth understanding of a business's financial systems and processes. A bad accountant can make costly mistakes and errors. For example, a bad accountant may input the wrong numbers into a tax software program. If the accountant does not understand the software well, then they can make big financial mistakes.
These mistakes are more than just a bummer – they can be costly and even illegal. In some cases, the accountant may not even be aware of their financial mistakes.
If this happens, they may not be the best fit for your business. While they may be great at the work they are doing, they may not be able to handle the more complex aspects of business accounting.
Sign #3: Their Knowledge is Not Up-to-Date
A good accountant understands the current market, regulations and financial trends. They know all the newest tricks of the trade and are able to keep your business competitive.
A bad accountant is not aware of the latest news associated with taxes and regulations. They may not even be aware of new tax laws, regulations and other rules that could affect your business.
A bad accountant can provide you with inaccurate information about the business regulations. They can also get you into trouble with the ATO due to incorrect information.
The Bottom Line: How Your Accountant can Make or Mar Your Small Business
Keeping your business books in order is a crucial aspect of running a business. The more organized you are with your business finances, the better your business outcomes can be.
When your business is doing well, it's good to keep an eye on your accountant. However, it's crucial to know how to tell whether your accountant is a good fit.
If they're not handling your business finances in a timely manner, or they're making financial mistakes, it's time to find a new accountant.
How Can We Help You?
Running a business is often a balancing act, but we can help stabilise your strategy by offering financial mentoring services to grow your venture. New Wave Accounting handles one of the best accountants on the Gold Coast, so get in touch with us and see how our end-to-end accounting and bookkeeping expertise can help scale your business.
We understand that keeping tabs on your finances and taxes can be overwhelming, so check out our services and learn more about how we can help you today!