By: Max Newnham
There are many components to running a successful business. In addition to focusing on excellent customer service, treating business more as a partnership rather than a competition is a major contributor.
By this I mean most successful businesses are run by people who recognise they must work collaboratively with suppliers, employees, customers, and service providers including banks and professional advisers.
It amazes me how many small business owners put up with poor service from their accountants, including receiving fines levied by the ATO, but they do not look for an alternative.
This mindset of working with professional advisers particularly applies to accountants. Business owners who regard their accountant as a necessary evil, required only to meet their tax and other reporting obligations, can miss out on a valuable source of advice.
The problem is there are many tax agents who masquerade as accountants. However, there are key points that help business owners decide whether they are using a tax agent or an accountant.
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Q. I have recently moved from an industry “specialist” accounting firm to one of the big four firms. The difference is remarkable. The first company has cost me thousands, plus a price gouge on exit, and their work was appalling despite all of their marketing to the contrary
I have been looking for a feedback site that I can leave a review to try and help others avoid my mistake. I am a doctor and there are lots of sites for us but I can’t find one for accountants. I recognise the difficulties with such sites but still think they provide value. Do you know of one?
A. Unfortunately, I do not know of an accounting industry site where you could leave feedback, such as exists for doctors, but there is a general website called Whirlpool that has a finance forum that you could leave feedback on.
You have raised an interesting point with regard to having received bad advice, possibly coupled with mistakes made on income tax returns lodged, that has cost you thousands. It amazes me how many small business owners put up with poor service from their accountants, including receiving fines levied by the ATO, but they do not look for an alternative.
It also does not help when trying to choose a replacement that many accountants are in fact only tax agents. Tax agents tend to specialise in preparing and lodging income tax returns and providing financial statements. An accountant does these things but also should provide advice on how clients can improve their tax, financial, and business affairs.
If a small business owner is starting to doubt whether they are receiving the advice and help from their accountant that they need, a phone call to another accounting firm will be the first step in assessing if they are an accountant focused on helping clients.
If you are asked numerous questions to find out exactly why you are phoning, this is a good indication the accountant is not client focused. After being put through, ask why you should use the firm. If the reasons are mainly about lodging tax returns on time and preparing accurate financial statements, keep looking.
Source: SMH
