Your small business accountant may be doing all the typical stuff- reviewing your books on a quarterly basis, preparing financial statements and doing the year-end tax returns. But is your current accountant adding value to your small business? Your accountant is in a great position to help you significantly improve your business performance, reduce costs and give your business the competitive edge you need to excel in today’s market.

A great accountant doesn’t just do the typical accountant stuff, they go above and beyond to provide valuable information to help you make informed and better business decisions. 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 personal relationship.

We have outlined 7 Red Flags that signal it is time to hire a new small business accountant.

7 Red Flags You Need a New Accountant

#1. Lacks experience in your Industry

It’s frustrating for a small business owner when an accountant takes an excessive amount of time to learn your business. It can even cost you money if they are billing at an hourly rate. Find a different 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. Additionally, an accountant with experience in your industry can help you become aware of red flags in your financial statements that are critical to your business’s success.

#2. Communication is key

As a small business owner, you probably feel extremely busy running your business. You need the right information to make informed decisions very quickly to avoid wasting time. If you cal your small business accountant and send them emails without a reply within one business day, it is time to look for a new accountant. Find someone who is as committed to your business success as you are.

#3. Is Charging for The small stuff

Have you ever called your accountant for a quick phone call to get a few questions answered, and they bill you charging for a “quick call”?  If you’re worrying about the cost of every minute you talk to the accountant, then you aren’t getting the value you deserve

Do You Need To Hire a New Accountant?

#4. Does not explain your financial statements

Most small business owners don’t understand how to properly read their own financial statements. With all the valuable information provided on them, it is essential that small business owners understand exactly what is going on to quickly understand the health of their business. An experienced, professional accountant will explain all your financial statements to you in a simple matter that breaks down and decodes your financial statements. A great accountant will even teach you how to use these reports in your accountant program and review financial information on your own so you can stay up-to-date every day.

#5. Not up to date with the latest tax laws

Most business owners are not up to date on tax laws and available tax breaks, however, your account should be. 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.

Additionally, if the company always files your tax return late because the accountant does not have time to complete it, now is the time to move on. If your accountant can’t provide you with a quarterly financial statement analysis in a timely manner, this is another signal.

#6. Have trouble understanding your Accountant

Does your accountant use jargon that leaves you in the dark? Do you feel like your accountant is never providing useful information because you never totally understand the message they are conveying? A good accountant will easily speak in terms that you can understand. It is essential that you are getting the information you need when it comes to your finances, and not paying for an accountant that cannot explain the bigger picture to you.

#7. Your getting better advice, elsewhere

Do you feel like your constantly hearing better financial advice from other sources? Are you constantly having to research relevant industry articles on the internet to find the advice you need? If you answered yes to either of these questions, its time to start looking for a new accountant. A huge telltale sign that your accountant isn’t right for your business is when you have to start bringing suggestions to your accountant, and they agree you have great ideas. The accountant should know to bring up the advice and proactive suggestions to the owner themselves.

The Bottom Line

There are multiple red flags that suggest you should consider looking for a new accountant. Since cloud technology has come into the picture, small business owners have the option of choosing an accountant from just about anywhere that is able to work remotely for them. This opens your business up to the option of choosing from many excellent accountants. Your new accountant can help you gain a new insight into your business through the proper use of accounting information and financial statements and create healthy tax savings. In case you decide to replace your accountant, you should do so after the payment of all the taxes due and start at the beginning of the fiscal year.

Limitless Investment & Capital Outsourced Accounting Services

Limitless Investment and Capital takes great pride in offering each of our clients’ business solutions that work to meet their needs. Since 2013, we have been staffed by experienced business people and accountants, tax professionals, and CPAs who bring a unique perspective in delivering financial, management, and tax services to our clients. Sound financial management is the key to any successful business! Contact us today to learn more about our services and pricing.