Fredrick James-Educating the Masses to Help You Save On Taxes

You know you need an accountant to help you figure out your financials and you’re worried about the looming possibility of being hit with a big tax bill in the spring. The problem is, you’ve heard horror stories from friends and family about awful accountants. So now you’re left wondering, how do you know what you’re getting yourself into?

Last week I went over the different types of accountancy services generally available to business owners. This week I wanted to follow up with some advice on an even more individual level: finding an accounting professional you can get along with, communicate with and work with. Yes, that’s a big deal.

Choosing the Right Accountant Can Make or Break You

Before I start, I want to clarify that accounting is an investment in your business, rather than an annoying expense. Finding the right accountant who understands your goals and is willing to work with you toward achieving them is worth his weight in gold. You will see a much higher return on your investment through smart tax planning and good financial reports that will help you more easily obtain credit in these credit-strapped times.  Having reconciled financial statement can become the difference between getting the loan you need to grow your business and getting the denial letter.  Those financial statements can also become the difference between negotiating fair market value or losing out because your potential partner did not trust the excel spreadsheets and tax returns that you supplied.  I can go on and on with examples, but the point that I am trying to stress is that your accountant should provide value that will pay for itself in the future.  Financial Statements are just the minimum; there are so many other ways that a good accountant can provide value.

Regardless of which type of service you decide to use, be sure that you get along with your accountant and you can envision yourself working with them for the long haul. It does you no good to hire an accountant or bookkeeping service if you dread each interaction with them. Keep in mind too that it is much harder to change accountants once you’ve already gotten established with one, so definitely pay attention to your first instincts and ask a lot of questions during your consult to evaluate their communication style:  Do they answer your questions or deflect? Do they make sure you understand their explanation or rattle off a bunch of jargon then move on? Do they seem sincere or do you feel like you’re being sized up like a juicy morsel?

While price is always a consideration, your main concern should be on the overall results a firm can deliver as the primary factor in determining which accountant or accounting firm to select.  A good accounting firm should become a valuable asset, providing a range of services designed to help your business grow and become more profitable.

_{Some other things to look for in a good accountant:}

• _{The ability to explain the results of their services in plain English.}
• _{Knowledgeable, professional, personal, helpful, informative and friendly.}
• _{Be able to help you set up your new company in a tax savvy manner, keep track of income, expenses, assets and liabilities, reporting, benchmarking, forecasting, provide tax planning for personal & business income, personal and business finance advice, loan packaging, handle responses to various governmental State & IRS letters, preparing for Audits, business growth consulting, IT consulting, Advertising and Marketing Growth Consulting.}
• _{Able to help you set goals and offer creative business advice that will benefit your company as well as insightful recommendations.}
• _{Be your most trusted business advisor and should be involved in many of your business decisions and ready to advise you from a financial perspective.}
• _{Contact from your accountant throughout the year with proactive advice and recommendations.}
• _{Answers their phone & email messages in a timely manner.}
• _{Refers their clients to other reputable professionals in the finance and legal arena.}
• _{Understands the word “value” which ultimately means superior service, innovative ideas, forward thinking approaches and a relationship that you can rely on throughout the years.}

Good accountants generally have great reputations and rave reviews from their clients; most of their business comes from client referrals. Talk to your friends and business associates. Ask them about their accountant.

If your accountant is not listening or giving you the right advice, if you’re frustrated, confused and/or annoyed, then you are going to have a very hard time achieving your financial goals and should consider a new accounting relationship.

The best advice I can give you is: give yourself the time to research and meet with several professionals to help you choose the right type of accounting relationship and the right personality fit for you.  Make sure you clearly communicate your expectations and define your roles.  Remember that your accountant is an investment in your business and that your investment in a good accountant will pay off.  Finally, communicate with your accountant as often as possible or at least on a monthly basis.  Your accountant’s knowledge of your industry, tax tips and great advice will pay dividends as your business grows and helps fulfill your goals and dreams.

_{Fred Daus is the Chief Executive Officer and founder of Fredrick James Accounting, Tax & Consulting. He is a member of National Society of Accountants and the National Society of Tax Professionals and has been helping clients save money since 2001. Fredrick James is an innovative, full service accounting firm in Clearwater, Florida. Visit our website www.FredrickJames.com or call 727-474-0922 for more information}

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