Get Better Results From Accountants: A Business Owner's Guide

Getting Better Results from Your Accountant: A Business Owner's Guide

As a business owner, you’re constantly juggling tasks, and managing your finances is a big one. You know you need an accountant, especially when tax season rolls around. But have you ever felt a disconnect, like your accountant isn't quite delivering what you expected, or that their services are more expensive than they need to be? Often, this stems from a common confusion: the difference between what a bookkeeper does and what an accountant does.

This guide will demystify the accountant's role, show you how to prepare your books for optimal results, and help you become the "efficient client" every accountant dreams of. Remember, when you make your accountant's job easier, you get better, faster service, ultimately saving you money and stress.

Bookkeeper vs. Accountant: Clarifying the Roles

This is where the biggest misunderstanding lies. Think of it this way:

• Your Bookkeeper: The Daily Record-Keeper. Your bookkeeper is like the meticulous, day-to-day manager of your financial transactions. Their work is frequently repetitive, tedious, and largely about precise data entry. They record every sale, expense, payment, and bill. They categorize transactions, reconcile bank accounts, manage accounts payable and receivable, and ensure your financial data is accurate and up-to-date. Their work creates the organized "raw data" of your business's financial activity.
• Your Accountant: The Financial Strategist & Analyst. Your accountant takes the clean, organized data provided by your bookkeeper and uses it for higher-level functions. They prepare financial statements, file taxes, offer tax planning advice, provide financial analysis, help with business strategy, and might represent you in audits. They interpret the story your numbers tell and help you make big-picture decisions.

A crucial point: Many business owners expect their accountant to also perform daily bookkeeping tasks. While some accountants can do bookkeeping, it's often not their primary focus, nor is it the most cost-effective use of their expensive time. When an accountant has to spend hours cleaning up messy books, you're paying accountant rates for bookkeeping work – and that's usually where the friction and higher costs begin.

Setting Clear Expectations and Managing the Relationship

A strong relationship with your accountant is built on transparency and mutual understanding.

1. Communicate Expectations & Scope of Work Upfront: Before any work begins, have a clear conversation with your accountant about exactly what services they will provide. What are their responsibilities, and what are yours? Will they handle all tax filings, or just review your prepared information? What level of financial analysis will they provide?
2. Get It in Writing (Contract): Ensure these agreed-upon services, fees, and expectations are clearly spelled out in a written engagement letter or contract. Both parties should be aware of precisely what is expected from each and the scope of work that will be completed. This prevents misunderstandings down the line.
3. Address Concerns Politely and Promptly: If work has been done not to your satisfaction, or you have questions about the quality or timeliness of their service, address it directly and politely with your accountant. Open communication is essential for resolving issues and maintaining a productive partnership. They can't fix a problem they don't know exists.

Becoming an "Efficient Client": Tips for Better Results

Being an efficient client isn't just about handing over clean books; it's about fostering a smooth, collaborative relationship.

1. Timeliness is King (Especially for Taxes):
   • Aim to have your books completely closed, reconciled, and reviewed by your bookkeeper by the end of the first week of February (for calendar year businesses). This gives your accountant ample time before the tax deadline, allowing them to provide more thoughtful advice and potentially find more deductions. You will also be first in their line because most business owners procrastinate until the last minute, which will frustrate your accountant. Last-minute rushes often lead to less thorough work and higher fees.
2. Respond Quickly to Information Requests:
   • Your accountant will inevitably have questions or need clarification. Respond to these requests as quickly and completely as possible. Delays on your part directly translate to delays in their work, often pushing you to the back of their queue, especially during busy seasons. You should aim to reply to your bookkeeping/accounting staff within 12 hours.
3. Communicate Changes & Unusual Transactions:
   • Did you buy a new piece of large equipment? Take out a loan? Start a new type of revenue stream? Inform your accountant about significant business changes or unusual transactions throughout the year, not just at year-end. This helps them anticipate potential issues and plan accordingly. Prepare a single document in advance that lists out any new asset purchases, strange transactions, any issues you would like them to be aware of.  Type it out in advance in a single document for easy reference.
4. Understand Your Reports (At a High Level):
   • Take the time to look at your Profit & Loss and Balance Sheet regularly. If something looks off or you don't understand it, ask your bookkeeper first. This shows you're engaged and helps you ask more informed questions of your accountant when strategic discussions arise.
5. Leverage Your Bookkeeper for Initial Questions:
   • Your bookkeeper is your first line of defense for financial questions. They understand the day-to-day details. Use them to clarify transaction specifics before escalating to your accountant, whose time is generally more expensive.
6. Schedule a Pre-Tax Season Check-in:
   • A brief meeting with your bookkeeper and/or accountant before year-end (around end of Q3 / start of Q4 can highlight potential issues or planning opportunities while there's still time to act.

The Payoff: Why Being an Efficient Client Matters

Accountants charge for their time and expertise. When your books are disorganized, they spend their valuable time (and your money) on remedial data gathering and cleanup. When you provide them with impeccable, current records, they can immediately pivot to:

• Strategic Tax Planning: Finding legitimate deductions and strategies to minimize your tax burden.
• Insightful Financial Advice: Helping you understand profitability, cash flow, and areas for improvement.
• Faster Turnaround Times: Getting your taxes filed and financial reports back to you more quickly.
• Reduced Fees: Less time spent on cleanup means less money out of your pocket.
• Peace of Mind: Knowing your finances are in expert hands and your compliance is secure.

By understanding the distinct roles of your bookkeeper and accountant and committing to organized, timely financial practices, you won't just get your taxes filed; you'll unlock the full strategic value your accountant can offer, setting your business up for greater success. Need to get your books in impeccable shape for your accountant? If you're struggling with disorganized records and want to ensure you're getting the best from your financial professionals, contact us today for a consultation. We specialize in cleaning up and maintaining books, making your accountant's job easier and saving you money.