A lot of business owners are frustrated with their current accountant, yet they decide to continue being a client of theirs. Why? It has been proven that sometimes people prefer to accept poor quality of something they know, as opposed to going out in the realm of the unknown and finding something new. In other words, they are comfortable being uncomfortable. This article details 4 flagrant indicators to prompt changing accountants in the near year.
1. They are lacking proactiveness
Do you hear about grants and government subsidies and think “why hasn’t my accountant notified me about these?” This is something that is frequent within the accounting industry. At times, some accountants are overwhelmed with work which leads to them being reactive, as opposed to proactive. When an accountant retrospectively focused, lucrative grants and other subsidies can be easily missed. This is why it’s crucial to have an accountant who has the capacity and can be proactive for their clients.
2. You can’t contact them
You should consider reliability/dependability as one of the most important traits of your accountant. Your accountant should pick up the phone or respond to emails! It does not have to be immediate (even though this is a bonus) but you should get a response within 24-48 hours at the latest. There is nothing more frustrating than sending an email, only to get a response a week later (if you are lucky to get a response at all).
3. Deadlines are missed
This is the one thing that an accountant should be doing at a bare minimum, submitting your lodgments on time. The reason for missed deadlines can be tied to the reason for lack of responsiveness; accountants being overloaded with work leading to them being unable to direct their full attention to their clients. It is best to be with an accountant who knows their limits and has the right processes in place to ensure that deadlines are met.
Accountants should notify clients of things like superannuation payment deadlines as well. Did you know that if you do not pay your employees’ superannuation by the 28th of the following month (after the end of quarter) you are liable for administration fees, penalties, and interest? This is what’s known as Superannuation Guarantee Charge (SGC).
4. They don’t complete tax optimisation
Tax Optimisation (otherwise known as tax planning) is the process of reviewing your business performance for the year, predicting your tax liability, and implementing strategies to reduce your tax as much as possible. With all our business clients, we complete this in April, May, or June as it is crucial to achieving the best possible tax result each year. Tax reducing strategies consist of things like business restructuring, family trust distributions and non-concessional super contributions.
If you want to change accountants, reach out to the Link Advisors team for a quick chat.