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GETTING THE BEST out of your accountant BY CHRIS ELPHICK T here's no place for a Kiwi do-it-yourself attitude when it comes to the fi nancial side of running your business. Chances are you're not an expert in money and you'll need an accountant to prepare your end-of-year accounts, sort out your tax and explain your profi t and loss. Accountants deal with this and a lot more than simply keeping your books in order. Think of them as a key member of your business team – your fi nancial mentor providing sound fi nancial advice in plain English about what the latest tax changes mean for you, and other matters. They can help increase your fi nancial literacy so you become more confi dent dealing with the money side of your business. Take your time choosing an accountant. Ask for recommendations, talk to other business owners, your local Chamber of Commerce or business association. Prepare a job description outlining what you are looking for. Describe your business and how much fi nancial knowledge you have. Assess your needs, from book-keeping to running all your accounting activities or simply collating your accounts each month. Ask if you need: • help using an accounting package (eg, MYOB) • advice on tax, trusts, investments and issues such as depreciation of assets • assistance with basic tasks such as managing cash fl ow, budgets and profi t and loss, and • assistance with fi nancial forecasting and managing seasonal fl uctuations. Send out the job description and interview suitable accountants who respond. This gives you a feel for how well you'll work together. Ask about their services, charges and experience working with similar businesses to yours. If you are a family business, are they experienced in family trusts? What do they know about a business focussed on aquaculture or the other primary industry sectors. Do they have experience dealing with a business which goes through seasonal peaks and troughs of trade and therefore, income? Include both large and small or one-person fi rms in your search, as each has benefi ts and possible drawbacks. Larger fi rms offer a broad range of experience and services. However, they can be more expensive and more impersonal to deal with. Smaller fi rms tend to be readily accessible but may offer a limited range of services. In the case of a one-person fi rm, ask how much time they have to commit to your business. What will happen if they get too busy? At the outset, agree on how you will work together. Drawing up a contract for services can help prevent surprises. If you only hear from your accountant when your end-of- year accounts arrive, or when their offi ce junior calls to ask for your receipts, you're not getting the most out of them. At the very least, your accountant should go through your end-of-year accounts with you personally, explaining exactly what they mean. And if your contact is going to be with a staff member, that should be clear from the start. RESEARCH, CONSULTING AND LABORATORY ANALYSIS Aquaculture research Aquaculture impact assessments and consents Biosecurity and pest management plans IANZ accredited seafood laboratory Fisheries assessments and management systems Adaptive management plans CAWTHRON INSTITUTE Ph +64 3 548 2319 info@cawthron.org.nz www.cawthron.org.nz Whoever you deal with, they should be in touch regularly to discuss your accounts and how your business is going. This can be a telephone call or an email, it doesn't have to be face-to-face. Your accountant should be able to provide information about a broader range of fi nancial and business issues: • recent tax changes • explaining what the latest government budget means for your business • helping you make investment decisions, and • providing their take on the economy, and how it is likely to affect your business. If you're not happy with the service your accountant is providing, talk to them about it. Your relationship is a two- way process, and taking the time to make it work will make it easier for you to run a successful business. Chris Elphick is a Wellington-based business mentor, coach and trainer working throughout New Zealand and the Pacifi c. See www.chriselphick.co.nz MARCH/APRIL 2012 ■ NZ AQUACULTURE ■ 13 VIP.ACP 45 4