We researched and investigated 50 “regular” accounting practices to discover what they service they were offering to startup companies and what they were doing wrong. We concluded that there is a lot to be desired in the service level that typical accounting practices bring to small businesses.
The relationship between a company and its accountant is typically an annual affair where the accountant just ‘checks the books’ – but they could, and should, be doing more with their expertise and knowledge. Let’s explore how some of these weathered practices operate, and how we at First Accounts think differently.
Lack of business understanding
Many traditional accounting firms just see a box on their calendar that just needs ticking when the time comes. No modern business can afford to simply ‘go stale’ like this. You and your accountant need to constantly question whether improvements can be made to make your profit margins higher, processes more finely tuned and costs kept under wrap. The only way to do this is by talking about your business. It can be as simple as asking what your goals are for the next year, and what obstacles may prevent you from reaching them.
A good accountant should put themselves in the business owners shoes when looking at the numbers. This ensures that there is a high level of care and understanding present and will lead to the accountant being able to advise you on your business with the best intentions. If they are creating a cash flow forecast, it should be written with the same enthusiasm as if they were writing their own cash flow forecast.
If your accountant keeps his or her involvement in your business to its bare minimum then they aren’t servicing your business properly.
At First Accounts, we specialise in setting up sound processes from the very start so that you know what kind of relationship is normal with your accountant. Your opportunities are our opportunities.
Very limited resources
Quite a lot of practices rely on one or two accountants knowledge and experience to solve queries that their clients may bring them. Your business could suffer with not having sufficient information available in a timely manner.
At First Accounts, we have a network of accountants and partnerships to help resolve pertinent issues – it’s the reason why we started First Accounts in the first place. We want startups and small business to be the best they can possibly be, with the right advice at the right time. We are proactive in getting it to you.
You’re not getting the service you need
If your accountant is simply offering VAT returns quarterly and payroll monthly it means that you only contract them for the bare minimum. Unfortunately this does not add value to your business. The modern business accountant has undergone metamorphosis and is simply not someone who records transactions but gives you the meaning behind the transactions.
Modern Accountants now work in a world where all of the boring transactional stuff is largely automated. You need an accountant who can read the data, tell you how you are performing, and inform you on your financial strengths and weaknesses using Key Performance Indicators based on Critical Success Factors.
Of course they must also ensure that your business is compliant at all times with laws and regulations, but they are costing you a lot of money by not being proactive and up-to-date with their approach to your business needs.
That’s why at First Accounts we try to automate and integrate with existing software first – not only to lower the cost, but to also save time and to focus on what the data the numbers can offer and improve your business.
Get this right from the start and the odds are that your business will not only survive but thrive in its first year.
If you are looking for an accounting firm that wants your business to succeed in this challenging commercial world, book a call with one of our First Accountants today so that we can explore your business, find out what your future goals are, and formulate a plan so that we can work together to get your business there.
This is more about finding out if we are right for each other than your typical sales call so relax and enjoy Of course, if you are still boggled by it or just want to make sure it is done right, book a free Discovery Call with us today. If you just want to ask us a question – call us on clarity.fm/colinsweetman