Wajiha Danish | November 17 2022
Knowing the right questions to ask an accountant can put you at an advantage, whether you are an owner of a business or planning to start a new business. Read more to find out how?
It is important to be well-informed and well-prepared about the market and to have questions to ask an accountant. A business owner needs to be all-knowing about how to achieve financial goals; for that, current and future questions to ask an accountant can be a game changer.
Once you have recognized the importance of an accountant, you must know what questions to ask an accountant that will change the dynamics of your business and lead you toward the roadmap to success.
We come up with some lethal questions to ask an accountant that are considered mandatory and can help grow your business.
Let’s dig in:
As a business owner, one of the main goals is to maintain a positive and healthy cash flow. In order to ensure that the cash flow stays consistent without heading into negative territory, you need to ask your accountant how to manage it better.
It is the accountant’s job to ensure you understand the cash flow, pinpoint any loopholes, analyze the problems, and establish a plan to improve the cash flow. Also, another thing that an accountant can help you with is providing you with a cash flow projection for the future.
Hire an accountant who will file the taxes for you. An accountant is supposed to fill out your accounting forms as well as file your taxes.
You can ask your accountant about the relevant information you need to gather beforehand so that the filing process of the taxes can be more straightforward for you. You can also ask your accountant to organize all the records and file the tax forms later.
Some of the crucial questions that you can ask your accountant are:
o When should business equipment be purchased?
o How to maximize tax savings?
o What are the changes in tax law that can affect the business?
o How to keep track of tax deductions?
The first season as a business owner is usually the most stressful. As a new entrepreneur, you might need to learn what tax obligations fall on you.
To make sure you understand the tax obligations, ask your accountant about the following:
o Corporate income taxes
o Payroll taxes
o Personal income taxes
o Sales taxes
o Self-employment taxes
o Estimated taxes
Don’t forget the deadline for tax filing, and get all these answers from your accountant beforehand, so your taxation process is covered.
It is very important to keep a track record of your business. This helps immensely in filing taxes, measuring profitability, and securing funds. Apart from this, you should always keep the records accessible, especially in the case of an audit. Ask your accountant which documents are essential to be kept handy.
You need to ask your accountant which documents should be kept away for safekeeping. These documents can be:
o Financial statements
o Credit card statements
o Business tax returns
o Bank statements
o Business permits and licenses
o Business agreements
o Payroll records
o Insurance documents
A business enterprise can reduce its final tax bill by cutting certain expenses and spending at the right kind of expenditures.
The expenditures can be:
o Home office
o Business travel
o Charitable contributions
o Business use of car
It is best to ask your accountant which expenditures can be deducted. It all depends upon the financial situation of your business. According to that, the accountant can explain to you how to cut off unnecessary expenditures.
It is the goal of every business to grow. It could be an expansion to other locations or introducing a new range of products, etc. Ask your accountant how you can grow in the desired direction.
It is a known fact that an accountant specializes in everything related to finances. Your accountant is an expert in your business. It is better to ask the accountant for insights depending on the business’s financial condition.
Ask your accountant what changes in the business can help the company become successful.
An accountant might not be a financial advisor or a business coach; still, the extensive level of expertise and knowledge will give deep insight into how the business can grow into success.
The accountant might guide you on how to organize and handle your finances which will improve your work dynamics. He can guide you about the opportunities that will promote growth by tracking the progress of the business as well as what is holding the business back such as over-purchasing of inventory. This can help you project the cash flow and determine a plan for future opportunities and expenses.
They are here to assist you in your business operations. An accountant provides you with reliable and up-to-date financial records. It becomes easier for an accountant to work for a business’s growth if both the business owner and you are on the same wavelength; so, feel free to ask questions from an accountant and get clarity before making any decision!
Wajiha is a Brampton-based CPA, CGA, and Controller with 17+ years of experience in the financial services industry. She holds a Bachelor of Science Degree in Applied Accounting from Oxford Brookes University and is a Chartered Certified Accountant. Wajiha spearheads Monily as its Director and is a leader who excels in helping teams achieve excellence. She talks about business financial health, innovative accounting, and all things finances.