If you are business owner, there’s a good chance that you work with an accountant to manage your financials, but are you maximizing your partnership with such a key player on your team?
As a business owner, it’s important to create a team that you trust and can rely on in building your business. This means fully utilizing your team members skills. Here are a few tips to ensure a solid relationship with your accountant:
Create a Communication Plan
Whether you prefer email, phone calls or regular meetings, work with your accountant to create communication processes that meet your business needs. Early on, set expectations together on what you need – what you want to be notified about and how often. It’s also a good idea to schedule regular meetings to review your financials.
Decide what metrics to focus on
There are standard reports that most businesses review, such as a P&L and Income Statement, but there are also many other metrics to monitor, based on your industry and business type. Discuss what the key metrics to review are, how often to review and in what format. Keep your accountant informed on what areas to focus on so that they can alert you to changes in trends that you need to be aware of.
Ask questions – and get answers you understand
The old adage if “there are no dumb questions” is especially true when it comes managing your financials. A major benefit of having an accountant is having someone that can provide you with key financial information AND help you understand the details.
You should also expect to have your questions answered in a timely manner and your accountant should take the time to explain issues to you in a way that you understand. If your accountant is not able to provide information to you in a way that you understand or only provides vague information, you may want to consider looking for another accounting partner.
Have accounting software that is accessible to both the accountant and client.
Managing the financial aspects of your business is a team effort. When deciding on what accounting software to use, look for a product that is designed with the accountant and business owner in mind.
Create a strategy together
As with any team effort, having a solid strategy is place is important. As you create business goals, keep your accountant informed. Your accountant can help identify trends that support or raise red flags on your goals. Your accountant can also be instrumental in creating reports that monitor goal progress.
Having a solid relationship with your accountant is a huge asset in managing the financial side of your business. Whether you have a large team in place or are a company of one, knowing your numbers (and what to do with them) is an essential part of growing your business.
If you need assistance with managing your financials, give us a call at 505-830-3908. We’d love to partner with you on growing your business.