Is your ac­coun­tant RE­DUN­DANT?

With on­line sys­tems now pro­cess­ing ac­counts, here’s how to make use of your ac­coun­tant, writes PAUL DAVIES, to plan, an­a­lyse, re­struc­ture and grow your busi­ness.

Travel Digest - - SMALL BUSINESS -

We re­cently held a prop­erty sem­i­nar in con­junc­tion with Xero. When we were demon­strat­ing the Xero sys­tem, one of the sem­i­nar par­tic­i­pants said to me: “With the new on­line sys­tems do­ing all the pro­cess­ing for our ac­count­ing, we won’t need an ac­coun­tant”.

I agreed with her and I ex­plained to her that we don’t like do­ing pro­cess­ing – we can’t do the pro­cess­ing in a cost ef­fec­tive man­ner and af­ter spend­ing four years get­ting a uni­ver­sity ed­u­ca­tion and three more years train­ing and ex­ams to be­come a char­tered ac­coun­tant – it is not a good use of our skills.

In ad­di­tion we have to com­plete a min­i­mum of 40 hours of train­ing per an­num to sat­isfy the mem­ber­ship re­quire­ments of our in­sti­tute, the Char­tered Ac­coun­tants Aus­tralia and New Zealand (CAANZ).

There is a big dif­fer­ence be­tween a char­tered ac­coun­tant and a tax agent. Tax agents just reg­is­ter with the IRD – the IRD have no pro­fes­sional re­quire­ments.

As a char­tered ac­coun­tant li­censed to of­fer the pub­lic ser­vices, we have ad­di­tional re­quire­ments. Our sys­tems and meth­ods are reg­u­larly au­dited by CAANZ to en­sure they meet pro­fes­sional stan­dards.

You will be aware that ac­coun­tants can pre­pare ac­counts and tax re­turns – this is the com­pli­ance side of our job and it has been our bread and but­ter.

But ac­coun­tants can also do the fol­low­ing:

• Pre­pare bud­gets and cash flow anal­y­sis.

• Pre­pare rolling fi­nan­cial fore­casts for your busi­ness.

• Bench­mark your busi­ness and show you where you can im­prove your prof­its.

• Re­view the in­tegrity of your fi­nan­cial in­for­ma­tion to en­sure the fi­nan­cial in­for­ma­tion you see each month can be re­lied upon.

• Re-struc­ture your debt to en­sure you are get­ting the max­i­mum in­ter­est de­duc­tions.

• As­sist with buy­ing or sell­ing a busi­ness. • Value your busi­ness and put in place with you a plan to max­imise the value when you do sell.

• An­a­lyse your rev­enues and mar­gins and find­ing ways to im­prove both. This can be com­pleted in con­junc­tion with bench mark­ing. • Rec­om­mend and as­sist with the im­ple­men­ta­tion of bet­ter meth­ods of man­ag­ing your debtors and im­prov­ing cash flow.

• Plan you tax pay­ments and re­struc­ture your busi­ness to min­imise your tax.

• Pre­pare with you a busi­ness plan and coach you to achieve that plan.

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