Business
4 questions you should ask your accountant
1. What's my best strategy for increasing revenue?
When reviewing your financials, ask your accountant to pinpoint and suggest smart strategies for driving greater revenue. For your unique company that might mean focusing on new leads, encouraging customers to buy more frequently, incorporating cross-selling or up-selling, and/or re-thinking your pricing strategy.
2. How would you assess our financial performance this quarter/year?
Some small business owners – especially those who lack confidence in their financial literacy skills – may only want to know the basics, in simplest terms. Let your accountant know you’d like a more thorough analysis of your finances when you next meet, and help understanding what the numbers mean.
Ask for key ratios, like your gross profit percentage, and an assessment of the big picture, drawing comparisons with past performance as well as trends in your industry.
Also ask for any insights your accountant might have into the reasons for new or surprising developments, and what you can do to correct areas where your business is falling short – as well as what actions you can take to continue any positive trends.
3. How can you help me grow my business?
Ask your accountant how you can best work together to facilitate smooth, sustainable growth with minimal disruption to operations, and for tips on how to successfully scale based on past experience with other small business clients.
4. What are your most successful clients doing?
Neglecting to ask your accountant about their clients’ success stories is a missed learning opportunity. Even if a business has little in common with yours – operating in a different industry, or as a seller or products versus services – there’s value in learning what yielded impressive results for another company.
Alternately, you might ask your accountant how their clients overcame challenges similar to yours to help you brainstorm possible solutions.
Final Thoughts
Embracing Technology
You might be wondering why an accountant would be writing
about faxes (instead of taxes). I was recently
watching an episode a well known news program.
In this program one of the people being interviewed was discussing the Covid-19
Pandemic and some of the early issues.
This article isn’t about the Pandemic, but it is about technology and
how there is simple and inexpensive tools available.
The interviewee mentioned how they were trying to get Covid
information to another party interested in compiling information early in the Pandemic sometime in January 2020. The
receiving party was a cash strapped entity and the only way they were able to receive
information was via fax.
First wow.
The interviewee then mentioned how they didn’t
have a fax machine because they hadn’t sent a fax in years. So they went a bought
a fax machine.
Second wow.
He then goes on to describe how the receiving party’s fax
was so old it couldn’t receive all the faxes.
So the sending company bought a new fax and shipped it out to receiving
company.
Third wow.
I suppose I should be focused on the pandemic and the types
of things that were going on – but all I could think was – they are sending
important information via fax? And they
went out and purchased two more fax machines so they could continue to do that?
My mind was racing – there are much better ways to securely get
information to someone else without sending a fax.
Certainly, the sender could have used a secure online fax
service.
Or even better use almost any kind of cloud storage lets you
send a secure link. Some like Sync.com are
so secure that only you and who you authorize can see your data. Sync.com costs around $100 per year – much less
than the two faxes machines that were purchased.
As I listened, I was saddened to hear that these two entities
which combined have hundreds of employees weren’t aware of these two options,
both much less expensive, more secure and much more convenient to use.
My point of this story isn’t to embarrass anyone, it’s just
to bring awareness that there are tools that aren’t just more convenient,
but often times are more secure, reliable and less costly.
What about you? What
is stopping you from embracing technology in your business?