Going self-employed in 2022? Basic accounting terms you need to know
Assets = | Liabilities + | Owner’s equity | ||
Building | Vehicle | Cash = | Bank Loan + | Owner Investment |
$40,000 | $20,000 | $20,000 = | $20,000 + | $60,000 |
Look for these key factors when appointing an Accountant
Your business might have grown a lot or just a little recently, but you know it’s time to find a trusted accountant who would help you grow and get fantastic results.
With so many accounting firms in New Zealand, you might be wondering what they offer and how you can choose the right account for you. All of them might be real professionals but might have different industry experiences or offer an additional support level.
Read further to find out what you need to consider when hiring an accountant.
- Looking into the future
It’s vital in business to look back and evaluate what went well and what did not. Some accountants are great at reporting based on what has already happened, but a great accountant should be able to tell a story with numbers. That story needs to translate the results into forecasts and guidance. At the end of the day, you want to learn and grow and not just look at reports. Ask your accountant if they can help with forecasting and planning for your business.
- Available technology and tools
In the modern world of working remotely, business owners appreciate online tools, especially when they can be used from anywhere in the world. How handy would it be to have access to your accounting dashboard while having a cup of coffee and a caramel slice on your deck? Very handy, indeed. This is where software like Xero makes our lives easy. A great accountant will be able to help you set it up and provide training and support so you can get real-time data on the tip of your fingers. Ask your accountant if they use cloud-based accounting and can dedicate time to showing you how to use it.
- Client relationship and customer service
Customer service and client relationship is a big deal in the service industry. There is no difference between “big” and “small” clients in customer service. When looking to hire an accountant, it is a great idea to set up an initial meeting to see if you are comfortable asking them questions about your business. It’s also a great idea to see how you can work together, as an accountant should be your trusted partner. Go ahead and check out reviews first to see what other clients say about the accountant you are thinking of hiring.
- Fear-free and zero judgement environment
Do you shiver when accountants talk numbers and send you reports? Some business owners do. While running a business, you might know the basic concepts of accounting. Understandably, accounting might not be your field of expertise. So relying on an accountant to explain things in plain English is a fair call. A meeting with an account should really be easy and conversational as if you are talking to your friend and business partner. No one wants to leave a meeting feeling lost, or the worst-case scenario, misinterpret the information your accountant just tried to communicate to you. Ask your accountant if they can set up a meeting with you and see if you feel 100% comfortable in it.
- Pricing options
Accounting firms offer packages for businesses of various sizes, and hence, a different level of support. What might work for the “big fish” won’t work for a small or medium-sized business. What is more, if an accountant charges per minute like lawyers, perhaps you won’t be getting from them the amount of support you were hoping for. We think that a much better and fairer way to charge for the time is only the actual time spent on our clients’ books. Have a chat to an accountant you are considering engaging to see what billing process they follow.
It’s definitely a good idea to look around and consider the 5 things listed above when looking for a perfect accountant. If you would like to chat with us and see if we can work together, then get in touch via our contact form or by calling us on 021 274 0289.