5 things to ask your accountant that can help your business save
Whether you have just hired a business accountant, are switching accountants, already have an accountant or are just considering it, there is never a wrong time to start asking the right questions.
However, this is always easier said than done. Sometimes it is hard to know where to even start, let alone how to ask your accountant the right questions.
Although no questions are wrong or bad, we have compiled a list of five questions as a starting point that you can ask your accountant that can really help your business save big.
Question One: Is my current business structure suitable for my business situation?
When people start out on their own business ventures, the structure tends to be simple. They are either a sole trader or go into a partnership if they are going into business with someone else.
This is perfectly fine when you start out, but should your business begin to grow, you need to re-adjust and re-evaluate.
As revenue increases, so does your business risk and tax liability.
Chat to your accountant about the best business structure to help reduce risk, to help protect your personal assets and to significantly reduce your task bill.
Question Two: What accounting targets can be set for my business?
Setting solid and achievable business goals is a must. If you don’t have a target to aim for, it’s hard to track progress or to gauge whether or not your business is financially successful. One of the best ways to make positive progress in your business is to have clear financial goals so you know exactly what you’re working towards.
Having the conversation with your accountant can help you establish profit targets, personal income targets and revenue targets, which will then assist you on business decision making.
Question Three: How much tax should I expect to pay?
Planning ahead when it comes to business tax is so important. With the right knowledge and foresight applied in your business, you can significantly reduce your tax bill come the end of the financial year.
To really make the most of this, financial strategies should be implemented early – so it is well worth chatting to your accountant as soon as possible to establish the best strategies for your business.
One example of this is to know what expenses you can claim as business deductions. This can then help you budget and guide your business spending throughout the year as you know how much money will be going towards tax. Your accountant should be able to provide advice on this.
Question Four: How is my business performing year on year?
Being able to look back and compare your business performance as well as business expenses can really help you moving forward.
Some things that you may want to examine are how much you’re paying in rent, if your profits are slipping or is the money you’re spending on marketing worth it for the ROI.
Being able to really focus on the parts of your business that effect revenue, profitability and expenses will help you have a really clear idea of what direction your business is heading. And with the help of an accountant, you can implement strategies to fix or improve areas that your business might be struggling in.
Question Five: What upcoming tax updates will affect my business?
Maintaining a close relationship with your accountant can be helpful in so many ways. One of these ways is because they can help you keep up to date on any tax changes that may occur.
The ATO regularly issues new rules and regulations that businesses need to comply with. These changes can often have significant financial implications on your business if you are not up to date and planning carefully.
This being said, another benefit is being made aware should any grants of concessions that become available which your business can take advantage of.
Either way, being informed timely on any tax change is a must for your business and your accountant should be your first call.
Having an accountant for your business has endless benefits as they can really help your business avoid or cut down on a lot of unnecessary expenses.
If you want to ask any of these questions, or any other queries in regards to your business finances, we would love to help.
Contact Ascent Accountants on (08) 9356 8033