List Categories | List All Articles | List Articles By Title
Small Business - Would You Still Need An Accountant If You Didnt Need A Tax Return?
After over thirty years advising small business it still comes as a surprise to see the number of small business owners who are only interested in their financial results when it is time to do their tax return.
Many still think that their accountant is there to 'cook the books' at tax time!
It is not surprising that almost invariably the business owners who approach their accounting in this way are those whose business is not doing well.
Three out of five businesses fail within the first three years owing to a lack of proper business planning and record keeping and many of them are those proprietors who adopt this 'once a year' method of accounting. That's why they never improve.
Today's accountant is more than just a 'bean counter'. The new breed has developed expertise in many areas such as marketing, management, industrial relations law and computers. Indeed, the 'number crunching' that was such a large part of the accountant's life has been largely taken over by computers. There is now no excuse for not receiving meaningful reports when they do actually mean something and not three months after the end of the period.
Making business decisions has always been difficult. Small business owners without the resources of large firms have always needed to stretch beyond the limit of their expertise in making many decisions. That's what makes managing a small business so exciting. That's what makes it so dangerous too!
Seminar participants say, "My accountant knew all the answers, "but I didn't know all the questions". Time after time our new clients tell us that they are seeking an accountant who will give them good advice when they need it - not when they ask for it!
But in a small business the buck stops with you, if you are not receiving the service you want - don't just ask for it - insist on it!
One of the problems is knowing what to ask for! Your advisors should anticipate your need and supply you with what you need before you need it.
A new trap for small business proprietors that is becoming increasingly prevalent is for those who computerize for the first time. Many of the packages claim that you do not have to have any accounting knowledge to operate them and sales people use this as a selling tool. It is a half-truth at best!
Just knowing how the pieces move doesn't mean you can play chess and we are seeing an increasing number of proprietors who have computer generated financial statements which are meaningless for tax purposes and give misleading information for management purposes.
This isn't the fault of the computer package or the operator using it. It happens because the operator doesn't know or understand some of the accounting principles necessary to make the system work.
Computers are supposed to make it easier but they are like any other tool which relies on the skill and knowledge of the operator. Your accountant should be involved in the initial planning regarding the requirements of the business. He/she should also be involved in the installation and training of the operator so that this valuable tool is used to the advantage of your business.
Remember, good advice doesn't cost, it pays!
About the author Kelvyn Peters CPA is one of Australia's longest serving Tax Agents. He was registered in 1962 and accepted as a CPA in 1964.
He is well-known speaker and educator and is famous for his ability to rescue ailing small businesses.
How to Profile a Client
At first glance, this topic may seem a little repetitive, but you will find that although you have done homework before getting a contract and already know a fair amount about your client, you, however, do not know everything that is pertinent to the job. Once you have the project underway you will be adding to your knowledge of the client.
Increase Sales in Your Home Business With These 10 Simple Ideas
Every home business has the same problem of how to increase sales without a hugely expensive marketing campaign. By utilising the following simple ideas you will be able to do just that.
Venus Transit - and Small Business?
On June 8, 2004, the world witnessed what no one living today had ever seen..
Build Credibility with Expertise
As an Investment Representative you've worked hard to build trust with your pension clients. Now, you can solidify that long term relationship with your expertise on one of the greatest fears of small business retirement plan sponsors.
Get In Touch With Your Competition!
We all know that competition is an ugly word but competitors are a fact of life in business. If your business can't compete with other businesses, don't start it.
Three Big Barriers To Small Business Marketing Success
When you feel like you're always busy working on your business, but not getting where you want to go, it can be frustrating trying to figure out how to get your marketing on track. It can easily become a "not seeing the forest for the trees" feeling.
Passion Is Key To A Successful Business
Passion. Passion alone can make your business successful.
When to Say NO!
When is it a good thing to say no to a request?Balance in one's life is perhaps the most important goal for busy people. They can take on many more projects that most others.
A Business Tail: Veterinarian Foams at Mouth, Chases Tail, Learns New Tricks--Case Study
Many self employed professionals find themselves overwhelmed, frustrated, and confused when it comes to running their businesses. The deep skills they have in their professional field do little to prepare them for the dog-eat-dog world of running a business.
Small Business Computer Security, the Basics
Anyone in business today realizes both the natural dependency on computers in the workplace, and also the potential dangers associated with storing important data on them. Today's business owners are constantly being reminded that their company's data is at risk by the daily reports on various news stations, or even their favorite business-related website.
Equipment Maintenance Manual for Mobile Cleaning Business Outline
Service Cleaning Businesses must maintain their equipment in order to insure it is ready to go when the company vehicles reach their customer. It does not matter how many service vehicles or employees you have, a manual can save you both time and money.
How to Make Your Business Image Stand Out Above The Crowd
Traditional advertising methods are still being used for almost 90% of businesses today. The number one problem with this, is that all everyone else seems to be following the same old methods.
Why the Over Regulation on the Franchising Model?
Franchising is the fastest way to build small businesses, provide jobs, create money flows. Currently the Federal Trade Commission wishes to increase the over regulation on the franchising sector.
4 Areas Where Your Business is Losing Money
In my 18 years of consulting I have heard it all. Everything from competition to managed care as reasons why it's hard to create the business of your dreams.
What To Consider Before Buying A Franchise
Here are some useful tips on what to consider before buying a franchise. Before investing in any franchise system, be sure to get a copy of the franchisor's disclosure document.
Time to Sell your Restaurant? Some Advice from Restaurant Consultants, Inc.
As a specialist in getting restaurants open, it is surprising how many people ask, "How can I get out of my restaurant?" Reasons for this question vary greatly, from a death in the family to a merger with another firm, to the end of a lease.Selling your restaurant requires quality prior planning if you are going to realize the maximum value for the business.
Small Business Strategies - Four Critical Success Factors
Scenario OneDuring a recent presentation, a business owner was given the following challenge. If 10 of his 100 employees were asked to name the top 3 organizational goals for the current year as they perceived them to be, would he receive the same 3 goals from everyone or would he receive 5, 10 or even 25 different goals? The business owner shook his head and thoughtfully responded, "No, I am sure that I would receive more than 3 goals.
Boat Detailers; Add-on Products and Services
As a Boat Detailing Specialist, you may want to offer services such as making sure your clients' boat's batteries are charged and offering to charge them or test the boat before they arrive for their departure. This is an easy service to provide and will keep you on the top of the boat owners list of reputable and reliable service companies.
The End -- Fireworks or Fizzle?
Seems as though there are a lot of business closings going around lately. Everywhere I look small businesses -- one on top of another -- are closing their doors.
Franchise Buyers from Hell
I ran a franchise company for many years, a car wash franchise, and we use to get the most ridiculous franchise buyers who thought they wanted a franchise. It seems we had to deal with these Kookoo birds because they have consumer rights and the Federal Trade Commission, which looks over franchising goes out of their way to let these consumers get away with these tall tales.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !