What makes a great accountant?

BY ALICIA NEILSEN,

ASSOCIATE PARTNER, FORDHAM BUSINESS ADVISORS

That’s why many of us put our trust in others to look after our affairs and provide much needed advice.

When I meet a new client, I often ask them why they want to move on from their current accountant. The most common reasons I hear focus on lack of proactive advice, and feeling as a client, they getting all the information they need to know. I use a simple analogy to help people distinguish a good accountant from a great accountant. If you have a bowl of apples, a good accountant will tell you how many apples are in the bowl. A great accountant will challenge you and ask you questions including do you need more apples, how fresh are they, do you want different fruit, a bigger bowl and who is eating it. It might sound silly, when we put them in the context of your personal affairs, choosing an accountant who asks the extra questions can be the difference between surviving and thriving.

Over the course of a year, there are a few magic windows of opportunity where accountants like to take the time to review a clients “bowl of fruit”. Tax planning time head the list, being a busy and important couple of months in the lead up to the end of the financial year. During tax planning, a great accountant will help you investigate a few common issues, starting with your expected profit or earnings for the year, and your expected tax bill. They will also look for effective ways to maximise deductions and minimise your tax. More complex issues may include ensuring clients with a trust in their structure understands what the requirements of it are. Businesses should also keep their eye on assets and investments performance. There a whole host of other factors a great accountant can help you with that look at the bigger, long term picture. Many clients have idle cash sitting around that could be better invested or assets which are not held in the right place, by the right people. I also recommend businesses look at their current risk exposure and ensure they have the right insurance in place. Likewise, look out for unnecessary debt — and conversely, when it is advantageous to take on more debt. There may also be opportunities to contribute into superannuation that an accountant can provide advice on. The structure of your business should also be assessed periodically, with an eye for whether it is still set up in the right way for control and succession purposes. It’s surprising just how many of these important questions aren’t being asked or aren’t getting the attention they deserve.