Is your accountant costing you money? Your accountant should not cost you anything. An accountant’s responsibility, in addition to keeping you in compliance with federal and state financial laws and regulations, is to make you money. Most accountants have a degree in Business. Accountants understand how business works. It is your accountant’s job to understand your business.
Accounting is not considered a people business; however, I disagree. Accounting is about business and business is about people. We all know a business is only as good as it’s people. Just like any team, some teams are better than others. Your accountant should be part of your team. Even though your accountant may not know the names of all your employees, he should strive to be part of your team.
As your business grows it will be necessary to hire an accounting firm. Way before that happens you should already have your own accountant. Accountants that work for you are called internal accountants. Accountants that you hire to prepare annual financial statements and taxes are called public accountants. Your internal accountant can do everything an outside accounting firm can do. The difference is credibility. Third party audits are more credible than internal audits. Outside accounting firms are respected in the industry. Outside accounting firms offer the knowledge of many accountants. A large team is more effective than an army of one.
That being said, Rome was not built in a day. Start your business and begin generating revenue. Consult with an accountant when you have recurring revenue. As soon as possible bring on an internal accountant. Let your business degreed accountant assist you in growing your business. The business degree offers you valuable advice in accounting, marketing, finance, law, government, and most importantly, how to get along with others. Business is business attitude without tact and tolerance is not good for your business. People are not machines. Real people have real issues. Respect your employees, customers, vendors, and neighbors.
Accountants have a fiduciary duty of trust and privacy to their clients. Don’t be afraid to share private information with your accountant. All accountants are responsible to follow ethical duties. Even though greed has caused some accountants to go rogue, not all accountants have the Arthur Andersen/Enron mentality. A trustworthy accountant will not hide information from you. Accountants understand, “Trust but verify”.
In summary, in business you spend money to make money. Farmers don’t buy fertilizer because of the free meal the fertilizer company gives them. Farmers know fertilizer makes them money. Your accountant will also make you money, just in an indirect way.
