If you find it difficult to fill tax details, preparing your taxes takes weeks or all your tax deductions were not accounted for, you should hire a new accountant. It is better that a small business owner that excels at sales should exercise their efforts in increasing sales instead of learning about and doing accounting. You can confide almost everything with a good accountant, in making important decisions and divulging your trust in them. They are the backbone of a strong and engaging small business that will provide you with the tools to maximize your efforts in other departments. The relationship that you have is a strong and a personal relationship. Here are five signs that you need a new accountant:
Does not understand your industry:
It frustrating for a small business owner when an accountant takes to an excessive amount of time to learn your business. It can even cost you money. Find another accountant with better training and a better experience of working in your industry. They should be able to help you understand how much tax should be paid quarterly instead of a huge tax bill at the end of the accounting year. More importantly, missed deductions can cost you dearly in taxes.
Several complaints against your accountant:
Ensure that you check periodically with the accounting board to ensure that there is no non-compliance or disciplinary actions filed against your accountant.
Does not return your calls:
Even if accountants are busy during the tax season, they should be available to reply to your questions in quick succession. In case you are waiting for several days to get a response, then should find a suitable replacement.
Not up to date with the latest tax laws:
Accountants that stay in touch with the latest updates in tax laws can help you in getting more accurate and up-to-date advice. Your small business should ensure that they are continuing a professional education through one of the many industry organizations.
Does not explain your financial statements:
Many small business owners need assistance in understanding their own financial statements. This could be because they do not know how to read them effectively. A practicing Chartered Accountant will explain your financial statements to you in a simple manner that breaks down and decodes your financial statements. In time, your accountant should teach you how to use these reports in your accounting program and review financial information on your own.
The five signs will help you understand if it is time to change your accountant based on his interaction with the business. Your new accountant can help you gain a new insight of your business through the proper use of accounting information and financial statements and create a healthy tax savings. In case you decide to replace your accountant, you should do so after payment of all the taxes due and start at the beginning of the fiscal year.