Hiring your first accountant, whether it be internal or external, for your business is a big step in terms of growth. It provides some further assurance that your company's finances will be kept in check. However, the first accountant or the current accountant that you work with might not be the best accountant or even the best option for your business.
It's easy to get comfortable with an accountant, but you want to be sure that as your business grows, the accountant is still one you can rely on. It is crucial to work with someone that has your business's best interests at heart, so we've come up with some signs that it may be time for you to look into a new accountant.
Lack of Regular Financial Reporting
As a business owner, there is no lack of critical decision-making at any given time. Without regular financial reports to show the health of the business, how would one expect to make educated decisions?
If your accountant is not regularly providing reports like P&L Statements, Cash Flow Statements, Balance Sheets, and other crucial reports on a monthly basis, or even more often, you as a business owner do not have a clear picture of the business's health. Knowing these statements inside and out gives you an accurate picture of profit margins, company expenses, and cash the business is seeing.
Errors and Inaccuracies in Financial Statements
Maybe the previous example isn't true for your accountant. You may get regular reports, which is great, but you notice inaccuracies within them. As a business owner, you should never overlook or get comfortable with common "small" mistakes here and there. They lead to inaccurate data and could ultimately also be covering up much larger issues. Working with an accountant that performs sloppy work and does not have a set of processes they're following is certainly not the best case for a business trying to grow and stay in business. The bottom line is that if errors are a common occurrence, your accountant may not be the best for you.
Communication Isn't Their Strong Suit
Communication is everything in the world of business - especially with those handling your financials! In a situation where there is a time-sensitive request or a decision-altering question that needs to be answered, you shouldn't have to worry about if your accountant will get back to you or have the time to complete your request.
When it comes to working with an outsourced accounting firm, having a dedicated accounting specialist makes all the difference. They will always be available and up-to-date on your books. You can rely on them to be there when you need them!
It Stops At The Numbers
Not every business owner is well versed in accounting, and that's okay. The accountant you need to work for you should be the financial expert for your business. Along with the financial reporting should come an in-depth analysis of the books to help you fully understand your company's financial health.
If your accountant updates the books and wraps up, it's time for a new one. Inquire about advisory services that can keep you in the know and informed about your company's financial well-being.
So If It's Time For a New Accountant...
If your accounting department or external accountant isn't cutting it, consider outsourcing with AccountingDepartment.com. Our full-charge accounting takeover will provide you with the tools, knowledge, and accuracy to help you have the cleanest financials possible and unlimited scaling potential.