5 Questions You Need to Ask Your Accountant

Tax season is here. Are you prepared?
5 Questions You Need to Ask Your Accountant

Interested in Business?

Get Business articles, news and videos right in your inbox! Sign up now.

Business + Get Alerts

In many ways, an accountant is a business owner’s best friend. Your accountant can help you save money, increase your bottom line, and even avoid hefty IRS penalties at tax time. 

Here are five questions that every business owner should ask their financial advisement professional during meetings: 

  • How I can guard my business against theft? According to a recent national study conducted by the Association of Certified Fraud Examiners, the median loss suffered by businesses that employ 100 individuals or less is around $200,000. This staggering deficiency mostly results from deceptive billing schemes. 

    Working with an accountant who is up to date on all the latest scams can prevent you from becoming the next sucker. Your friendly accountant can review the details of your financial transactions, and he also can recommend some of the best ways to protect your personal information, your passwords, and your business accounts. 
  • What are the best financing options for my business? All business owners will need to expand their scope at some point. An accountant can advise you on whether or not you should explore equity financing (seeking new investors) or debt financing (asking for a loan from a financial institution) when it is time to upgrade your business.

    In addition, your accountant can recommend the right investment partners or the best financial institution to accommodate your needs. Also, because many commercial loan establishments require lendees to submit a convincing business plan, asking your accountant to help you present your numbers in an attractive and compelling fashion is usually wise.
  • How do I keep better track of my cash flow? Simply put, your company’s cash flow, which is defined as the ebb and flow of money into your business, is what keeps the doors open. If you do not keep a watchful eye on your cash flow, you could very easily fall behind on your payments or even find yourself forced to shut your doors permanently.

    Instruction from your accountant can help you streamline your budget, trim down overhead, and collect money from your sales in a timely manner, which can greatly increase your monthly cash flow. 
  • What do I need to know about taking inventory? Your accountant can help you more accurately assign value to your inventory when tax time rolls around. He or she can also discover the most tax-friendly locations to store your supplies. In addition, your financial advisement professional can even provide you with the most efficient re-stocking methods, which can greatly increase your monthly cash flow. 
  • Do we have a date for tax day? While some business owners prefer to handle their own taxes, most individuals choose to leave the task to a professional accountant. When it comes right down to it, tax laws are often too complicated for the average business owner to navigate.

    Also, seeking professional advice can have many other advantages. For example, your accountant can inform you of all the latest tax codes, which can help you avoid penalties and get the most out of your return. He or she can even help you avoid being red-flagged for a very unpleasant audit. 

Take the opportunity to speak to your accountant often. Opening the lines of communication and asking the right questions can help you grow your business and avoid serious financial mistakes. 

About the Author

Amanda E. Clark is the president and editor-in-chief of Grammar Chic Inc., a full-service professional writing company. She is a published ghostwriter and editor, and currently under contract with literary agencies in Malibu, Calif., and Dublin, Ireland.

Since founding Grammar Chic in 2008, Clark, along with her team of skilled professional writers, has offered expertise to clients in the creative, business and academic fields. The company accepts a wide range of projects and often engages in content and social media marketing, drafts resumes, press releases, Web content, marketing materials and ghostwritten creative pieces. Contact Clark at www.grammarchic.net.

How are you preparing for tax season? Post a comment below.


Comments on this site are submitted by users and are not endorsed by nor do they reflect the views or opinions of COLE Publishing, Inc. Comments are moderated before being posted.