If you own a business, you need the help of an accountant to guide your financial and tax-related decisions throughout the year. If you’ve recently found one you can trust, it’s a good idea to ask some questions that will allow him or her to help you as much as possible as you navigate through the challenges of owning a business. So take a look at some questions to ask when working with an accountant.
1. HOW OFTEN SHOULD WE COMMUNICATE?
First, you and your accountant need to determine how often you’ll communicate throughout the year. This will depend on your specific needs, your budget, and whether or not it’s tax time. Do you feel the need to touch base with your accountant every week, or is once a month the best frequency? And do you want regular contact, or do you really only need to talk when a question or concern arises? Find a communication frequency that is best for you and your budget as you start working with an accountant.
2. WHAT IS THE BEST WAY TO STAY IN TOUCH?
Maybe now you know how often you’ll talk, but how will that communication take place? Does your accountant recommend in-person meetings or phone calls? How about video calls or email? Find out what works well for both of you before your next meeting.
3. HOW CAN I MANAGE MY CASH FLOW?
Your accountant is there to help you manage many money-related issues, and your cash flow is one of them. More specifically, your accountant can help forecast your future cash flow to help you plan accordingly when it comes to your budget. So ask your accountant how your receivables and payables will be handled.
4. WHAT’S MY BREAK-EVEN POINT?
Your break-even point is when your business income equals your business expenses. Your accountant will use specific measurements to determine this amount, and should then tell you what it is. This way, you’ll know if you’re as profitable as you need to be, or if you’re losing money, which will help you decide how to price your products or services.
5. WHAT KIND OF PAPERWORK DO YOU NEED FROM ME?
Working with an accountant requires you to keep certain records in order to figure out profitability and file taxes. Ask your accountant what kinds of records to hold on to. They might include proof of your operating expenses, employee wages, the sale of assets and more. You should also ask how you should keep and submit these records, such as through printed copies or on software.
6. HOW CAN I SAVE ON TAXES THIS YEAR?
One of the benefits of working with an accountant is that he or she can keep you updated on the latest tax laws, which often change from year to year. So ask your accountant which tax laws have changed and how they might affect your business. You can also ask when the best time would be to buy new equipment, make charitable contributions and more.
Asking these questions when working with an accountant will help you get the guidance you need as a business owner. If you’re ready to talk to an accountant to find out how he or she can help your company, contact Prime Accounting Solutions, LLC today!