Three things to make your Accountant LOVE YOU

Navigating the complexities of business finance can be challenging, but building a strong relationship with your accountant can make all the difference. In this blog post, we’ll delve into “Things to Make Your Accountant Love You”. By following these guidelines, you’ll not only make your accountant’s job easier but also will help you avoid costly mistakes and streamline your business operations.

1. Seeking Advice

Some business owners make a habit of getting advice after they act.  Time and time again we see assets purchased in the wrong entities, and loans taken out in the wrong entity or names. Sometimes incorrect structures are set up and even shares transferred to others without consultation (just to name a few). These are often expensive actions to undo, if they can be undone. Further, they can result in lost business or tax saving opportunities.

Seek advice before you act – a phone call to a professional can save a lot of time, expense and stress. So give us a ring – we love it!

2. Good Bank Account Management

There is generally no need for more than a few business bank accounts. A cheque account and a couple of savings account should be sufficient for most businesses.  People often associate multiple bank accounts with having money but these all have to be administered which takes time and costs money.

From an accounting and administration perspective, it is better to keep it simple.   All business receipts and payments should go in and out of the business bank accounts.  These business bank accounts need to be in the correct entity name. For example, if you are operating a Company then the bank account has to be in the name of the Company.

Personal related transactions through the business bank account should be kept to a minimum.  Best practice is to set up a regular automatic payment from the business account to your personal bank account.

3. A Good Filing System

It is a requirement by the Inland Revenue to keep business records for seven years.  That is all well and good but if you can’t find them easily then that just creates unnecessary stress.  When preparing your end of year financial statements, we sometimes require access to the source documents like invoices and wage records to check descriptions or tax treatments so being able to easily locate these helps us to prepare your financial statements in a timelier manner. If you’re business is on Xero, talk to us about using this or Hubdoc as a way to keep all your records in one place.

In today’s fast moving business environment, streamlining your processes and getting the right advice all add to an increased chance of both business and personal success.  As we said above, if you need any advice or pointers give us a call. Our Auckland Chartered Accountants would love to hear from you : )

Bonus Tip

Want to really make your accountant love you? Who can resist the charm of a freshly brewed cup of coffee or a delicious snack while crunching numbers? Just remember, bribery with baked goods is always appreciated!