Four signs you’ve outgrown your accountant

But some businesses, particularly smaller companies on a growth trajectory, could be costing themselves money – and stifling their potential – by staying with their current accountant. It’s a difficult decision to make, but it’s also a pivotal one for you and your business.

How do you know if you’ve outgrown your accountant? How do you know when there’s a mismatch between your needs and their capabilities?

We’ve identified four telltale signs. If you’ve experienced most or all of these, it’s time to have a tough conversation with your current advisor and find a more strategic advisory partner.

You’re calling them, they’re not calling you

When was the last time your accountant called you about an issue that wasn’t tax-related?

As a business owner or leader, you maintain a watchful eye on industry trends, threats, and opportunities. If you’re reading about trends or hot issues facing finance leaders in articles like the Top 5 issues for CFOs in 2022, and not hearing about them from your accountant, it could be costing your business money and missed opportunities.

You need to know how these issues could impact your business and its bottom line – now and in the future. You need to be ready to ‘make hay while the sun shines’ or put on your armor and bunker down when the next global crisis takes place.

That requires a financial advisor who is across new and emerging trends, threats, and regulatory changes, and can model what they will mean for your business. It’s about ensuring you have the right information to make the right decisions at the right time.

That boils down to accessing specialist industry expertise and capabilities in areas broader than profit and loss, such as data analysis and insights.

How they approach their own business doesn’t inspire confidence

All businesses need to keep pace with technological change. If your accountant is working on outdated systems, you’re unlikely to seek or trust their advice on your business IT strategy. It might also dampen your confidence in their advice more broadly.

While no one expects accountants to be technology experts, contemporary financial advisors need to understand the IT environment and existing and emerging business software solutions that could benefit their clients.

Simple cost-effective automations can save businesses time and money and increase client and customer satisfaction. But you can’t make changes if you don’t know about them.

They’re not contributing to your growth strategy

Your business is evolving and becoming more complex, with multiple moving parts and a growing workforce. Your accountant may have set up your initial business structure to minimise tax and protect your assets, but your business may need to transition to a new structure and new online accounting system as part of a longer-term transformational plan.

What if you’re looking to expand offshore or to invest in research and development, can your accountant help you navigate the various legal, taxation or regulatory requirements and recommend the best options for your business?

What about franchising or mergers and acquisitions? Could your accountant advise you on these areas and the opportunities they present for your business in the short, medium or long-term?

If your accountant isn’t familiar with the sector you work in, they may not be up to date with new tax incentives or funding grants available to support your expansion strategy. They may also be unaware of critical regulatory proposals or impending changes that could close off or open up opportunities for your business.

You’re the only one focused on disruption preparation

Unsurprisingly, COVID-19 has forced all businesses to focus their efforts on the here and now – whether that was trying to stay afloat during extended lockdowns or managing unforeseen exponential growth as a result of altered consumer spending patterns.

Disruption is the new business normal. From supply chain headaches, to rising energy costs, inflation considerations or labor shortages, businesses are still operating in uncertain and fluid settings which make future planning essential. That includes succession planning for your business.

However, when you’re talking with your accountant, if you’re the only one talking about the future – such as how to harness a growing economy or secure talent during a national workforce squeeze – it’s time to draw on some fresh financial acumen to put you and your business in the best position to thrive and grow.