How to Work with Your Accountant

How to Work with Your Accountant: A Guide to Building a Strong, Productive Partnership

Working with an accountant can be one of the best decisions you make for your personal or business finances. But, like any professional relationship, it requires clear communication, trust, and collaboration to truly be effective. Whether you’re managing a growing business or organizing your personal taxes, understanding how to work with your accountant will help ensure you get the most out of their expertise.

In this post, weʼll break down how to build a strong partnership with your accountant, covering everything from communication to delegation, and maximizing the value of their services.

1. Understand the Role of Your Accountant

First things first: Know what your accountant is there to do. Depending on their specialization, your accountant might handle different aspects of your finances. Some of the key roles accountants typically fulfill include:

• Tax Planning and Filing: Helping you minimize your tax liability and ensuring compliance with tax laws.
• Financial Statements: Preparing income statements, balance sheets, and cash flow statements to give you a clear picture of your financial health.
• Bookkeeping: Managing day-to-day financial transactions, if you’re working with an accountant who also offers bookkeeping services.
• Business Consulting: Providing advice on financial strategies, budgeting, cash flow management, and even investments.
• Audit and Compliance: Ensuring that your financial records meet regulatory standards and passing audits when necessary.

Itʼs important to clarify your accountantʼs specific role in your business or personal finances so you know how to engage with them effectively.

2. Set Clear Goals and Expectations

Establishing what you need from your accountant is crucial. Whether you are looking for regular financial updates or strategic advice, defining clear goals will help you get more from your partnership.

• For Individuals: You might want help filing taxes or planning for retirement, for example. Clear goals could include maximizing tax deductions or improving personal budgeting.
• For Businesses: You may need help managing cash flow, preparing for growth, or ensuring you’re making tax-efficient decisions as you expand.

Make sure your accountant knows exactly what your objectives are, and donʼt hesitate to ask questions about how they plan to achieve them. Setting expectations early on reduces the likelihood of miscommunication and helps both you and your accountant stay aligned on goals.

3. Communicate Regularly and Clearly

Accountants need regular access to up-to-date financial information to do their best work. Keep the lines of communication open and share necessary documents in a timely manner. Being responsive will help your accountant stay on top of deadlines and avoid last-minute stress for both parties.

• Monthly/Quarterly Check-ins: For businesses, regular check-ins can help your accountant advise on budgeting, tax planning, and financial health. For personal finances, periodic conversations can ensure that your financial situation is on track.
•  Keep Documents Organized: Whether itʼs receipts, invoices, or bank statements, ensure that youʼre providing your accountant with organized and complete information. This will make their job easier and allow them to deliver better results.
• Ask Questions: If you donʼt understand a term or concept, ask. Your accountantʼs role is not only to manage your finances but also to educate you.

Donʼt be afraid to request clarification if something seems unclear.

4. Be Transparent About Your Finances

Honesty is critical when working with your accountant. If you have outstanding debts, are considering large investments, or are worried about potential tax issues, itʼs important to be upfront about your financial situation. Accountants can only help you if they have all the relevant information.

• Personal Finances: Be open about any changes in income, expenses, or major life events that could affect your financial situation (e.g., marriage, divorce, or a large inheritance).
• Business Finances: Share any significant changes in revenue, expenses, new hires, or investments. Full transparency helps your accountant make informed decisions and provide more strategic advice.

5. Delegate Financial Tasks, but Stay Involved

An accountant can take on a lot of the financial heavy lifting, but itʼs still important for you to stay involved in key decisions and oversee the work being done. Consider delegating routine tasks like bookkeeping or tax filing while you focus on higher-level financial strategies or day-to-day operations.

• Trust Your Accountantʼs Expertise: If youʼre working with a certified accountant (CPA), they bring specialized knowledge to the table. Delegate tasks like bookkeeping, tax filings, and auditing, and trust that theyʼll handle it with professional care.
• Stay Informed: While you donʼt need to micromanage, make sure youʼre reviewing financial statements regularly, staying on top of tax deadlines, and being involved in key financial decisions.

6. Leverage Your Accountant for Financial Strategy

One of the most valuable aspects of working with an accountant is tapping into their strategic expertise. If youʼre only meeting with your accountant at tax time, you may be missing out on opportunities for better financial management.

• Business Growth: For businesses, your accountant can provide guidance on investments, expansion strategies, and managing cash flow during periods of growth.
• Tax Efficiency: A good accountant will help you optimize your tax strategy throughout the year, not just during tax season. They can help you make decisions that minimize tax liabilities while keeping your business compliant with regulations.
• Retirement and Estate Planning: If youʼre working with a personal accountant, they can help you make decisions about saving for retirement, optimizing taxdeferred accounts, and planning your estate.

7. Stay On Top of Deadlines

Accountants often deal with tight deadlines, especially during tax season. To make sure youʼre not scrambling at the last minute, stay ahead of important dates. For example, ensure that you have all necessary documents ready well before the tax filing deadline. If you know youʼll be missing a deadline, let your accountant know in advance.

Having a clear understanding of deadlines for tax filings, quarterly estimated tax payments, and financial reports will help avoid unnecessary stress and potential penalties.

8. Review the Work Together

Once your accountant has completed a report, tax return, or other financial task, take the time to review it together. This allows you to ask questions, understand how numbers were arrived at, and ensure that everything is accurate.

• Understand Key Financial Metrics: For businesses, reviewing key performance indicators (KPIs) such as profit margins, liquidity ratios, and return on assets will help you stay informed about your financial health.
•  Tax Returns: For individuals, reviewing your tax return with your accountant ensures there are no errors and that you’re taking advantage of every deduction and credit youʼre eligible for.

9. Choose the Right Accountant for Your Needs

Not all accountants are created equal. Make sure that the accountant you choose is qualified, experienced, and a good fit for your specific needs. Some questions to ask when choosing an accountant include:

• Do they specialize in your industry or financial needs?
• Are they proactive in advising you on tax planning or financial strategy?
• Do they have a track record of good communication and responsiveness?

A strong relationship with the right accountant can make all the difference in achieving your financial goals, whether you’re running a business or managing personal finances.

Conclusion

Your accountant is not just a number cruncher—theyʼre a key partner in managing your finances. By setting clear expectations, communicating regularly, being transparent, and leveraging their expertise, youʼll get the most value out of your partnership. Building a relationship with your accountant based on trust and collaboration can help you achieve financial peace of mind and success in the long run.

If you havenʼt yet built a strong relationship with your accountant, nowʼs the perfect time to start. Working together, you can take your financial planning to the next level.