5 Reasons why January is the best time to change Accountants

A lot of business owners are not happy with their current accountant, however, they don’t make the choice to change. Why?

It has been proven that sometimes people prefer to accept poor quality of something they know, as opposed to going out into the realm of the unknown and finding something new. In other words, they are comfortable being uncomfortable.

This article outlines 5 crucial reasons as to why now is the best time to change accountants.

 

1. Fresh Start

January marks the beginning of a new year, and it's a natural time for people to reassess their financial situation and set new goals. This is an ideal time to review your current accounting relationship and determine if it is meeting your needs, and if not, to make a change.

You can ask yourself questions like “am I getting enough face time with my accountant?” “Do they actually call me when they’ve done something, or do they just send me an email” “Does my accountant actually care about me?” If you find the answer being no for any of these, it may be time to go in a different direction.

 

2. Timing

January is typically when businesses start to think about what needs to be done before the end of the financial year. This makes it a convenient time to transition to a new accountant, as they will have a fresh set of eyes to provide you with advice & guidance on the best way to move forward.

 

3. Technology

A new accountant may be more familiar with the latest accounting software and technologies that could streamline your accounting process, making it more efficient and accurate.

Your objective should be to reduce manual work as much as possible, whether this be for your operations or general administration. If your accountant hasn’t recommended tools like Dext Prepare or XERO, it may be time to give us a call.

 

4. New Insights

A new accountant can bring new insights and strategies to increase your profits and reduce your tax. After a time, it is easy to get used to your accountant doing the same old tax return each year, the real value comes from their advisory services and telling you the best way to move forward.

Are you currently doing any monthly reporting or cash flow forecasting? This is a great opportunity to suggest this, so you can have a clear, concise picture of how your business is performing. At times, your profit can look extremely healthy with your cash balance reflecting something else.

 

5. Your Accountant is Tough to Understand

One of the reasons for hiring an accountant is for them to understand the complicated financial terms and obligations that most business owners find hard to comprehend. With this, they should be simplifying how taxation law works, as opposed to passing the complexities and jargon on to you.

 

Overall, January is an effective time to change accountants because it allows for a fresh start, timing, new technology implementation, and new insights that can benefit your business. If you’d like to discuss a change or if you’d like to get a second opinion on your accounting, contact LINK Advisors.