10 Questions to Ask Your Accountant

An accountant can be an invaluable resource for any small business owner, offering guidance, support and acting as a sounding board to help you operate your business efficiently and properly. Where they can really show their value is their understanding of the often-complex tax world. To get the most from your accountant, it’s a good idea to be in regular contact with them, be clear on any areas where you may need further support and don’t be afraid to ask questions.

When hiring an accountant, you may not be clear on their responsibilities, where their remit begins and ends, and what’s expected of you. The clearer you can be about this, the more effective the relationship will be. Over time, your accountant will come to know your business very well, and they’ll likely have a much more comprehensive knowledge of the tax system than you, so their guidance could save you time and money. So, whether you’re using an accountant for the first time or you’ve worked with them for years, here are a few questions it’s always worth asking.

1. What records should I keep?

This is a great question to start with as it’ll ensure the accountant gets everything they need from you so your taxes can be filed and your financial situation can be monitored and assessed. It will also ensure everything is in place if you ever get audited. Your accountant will likely want you to safely store your business tax returns, financial statements such as cash flow forecasts and balance sheets, receipts, bank statements, contracts and payroll records, among others.  

2. What business expenses can I deduct?

While storing receipts for any business expense is essential, it’s perhaps more important to know which purchases are tax deductible, as this will help ensure you pay the right amount of tax. Your accountant will be able to offer specific advice based on your circumstances and highlight more well-known expenses, such as business travel, subscriptions and employee expenses, that could reduce your tax burden.  

3. How should I prepare for taxes?

When it comes to taxes, being organised will ensure the correct amount is paid at the right time and with the least amount of stress on your part. Your accountant will be able to tell you the information they need ahead of time and advise on how best to organise your finances so they can access this information as and when they need it. Accounting software can be a huge advantage here as your accountant can access information in real-time, and you can go through the details together even if you cannot meet in person. Other specific questions around tax that could be useful include if there is a good time to make big purchases, how to keep track of any deductions and if there have been any changes to tax law that could impact you or your business.  

4. What do you expect from me each year? 

While you may be in contact with your accountant more when taxes are due, it’s worth asking what will be expected from you throughout the year so you can be sure nothing gets missed. Any accountant will likely appreciate a timely response to any queries and complete and accurate records, but there may be other things that will help your accountant provide a more thorough, bespoke service.  

5. How can you help me grow my business? 

Although it’s vital that you’re clear on what your accountant expects of you, it’s also worth thinking about where your accountant can add value to your business. This could include tapping into their knowledge to help you find ways to grow while ensuring your finances remain on track. For example, if you’re considering adding new products or services or opening in a new location, your accountant can assess whether your finances are viable. They may also be able to delve deeper into the figures to identify opportunities or pinpoint issues that may be stopping you from growing at the rate you would like.   

6. What changes could I make that would help my business? 

Of course, growth won’t be your only goal for your business, so don’t be afraid to ask your accountant for more input into what the figures show about your performance and any steps that could help you achieve your goals. Remember, your accountant isn’t just there to report the numbers; they can also assist with business forecasting, advisory services and management reporting. This means they’ll have a thorough understanding of your business and may be able to identify opportunities to introduce efficiencies, growth areas that could be exploited or ways to fund new projects.   

7. What are your most successful clients doing? 

Most accountants will work with multiple clients across multiple industries, so they can offer insight into your business and share what they’ve learnt from working with others. Asking your accountant what other companies are doing well and what they see their most successful clients doing may well spark an idea or a change in approach that could help to take your business to the next level.  

8. What area of my business should be my top priority?

As a small business owner, it can be difficult to know what to prioritise when, as often, everything seems urgent. Your accountant can not only be a great sounding board, but they can also offer guidance on the tasks you need to prioritise and those that are less urgent. If you lack time to do everything, they may also have contacts that could be used to delegate some responsibilities.

9. What should I consult with you about on an ongoing basis? 

While ensuring your tax obligations are met at the appropriate time will be a crucial focus for your accountant, you should be checking in with them regularly, so ask if there are specific things your accountant would be happy to consult on. For example, if you have decisions to make, such as hiring permanent staff or using freelancers, or whether to buy or rent equipment, your accountant will be able to explain the implications of your decisions. There will likely be other ways their knowledge could add value, which is why this question is essential.   

10. What else do I need to know? 

Even if you ask all of the questions above, you may still miss out on some of the incredible knowledge your accountant has, so give them the opportunity to fill in any gaps. And don’t be afraid to repeat the question as time goes by. Your accountant’s experiences will develop, your business will evolve, and tax regulations may change, so for the best outcomes, keep nurturing what could be a significant business relationship