Having a good relationship with your accountant might sound obvious, but in fact it’s one of the most important assets to your salon. So we asked the specialists at LaskIT how best to keep your accountant happy, and your business finances in order.
Yay, you’ve just got yourself an accountant, finally! No more late nights with mountains of paper and confusing forms. But to get the most out of your accountant, you need to make their job as easy as possible. Only then, will they be able to concentrate fully on keeping your business in tip-top financial health and helping you grow!
We caught up with LaskIT, an accounting firm that goes beyond the numbers and really gets to know the small businesses and sole traders it supports. Here are their five easy tips for keeping your accountant happy, and your business finances in order.
Remember – there is no such thing as stupid financial questions.
1. Talk to each other – frequently!
Good accountants are not only skilled at crunching numbers, they help companies grow, by managing complex financial work and offering advice on practical business issues. Make it a habit to communicate regularly and openly with your accountant – to get the best possible value from the relationship.
Sit down and talk with your accountant about your business aspirations and goals so that they can advise you on how to best make use of their time and build your financial strategy. Always update your accountant on any changes to your financial situation and don’t save everything until the end of the tax year when all accountants are swamped with piles of work. By then it may be too late to deal with any unexpected changes or problems.
Make a promise to yourself, including a reward if you fulfill it: Don’t save everything until the end of the tax year!
2. Be honest
As you know, all good relationships are built on trust. And if there’s one person that you absolutely must be honest with about every aspect of your company’s finances, it’s your accountant. “Tell us about your financial problems, we will most certainly find a solution to it and give you advice,” says Tim Matikainen from LaskIT. Being dishonest about your income or tax information puts you at risk of making mistakes and even potentially facing legal consequences.
3. Don’t be afraid to ask questions
Don’t be afraid to admit that you don’t understand how certain things are done or what financial terms mean. How would you? Your accountant understands that you’ve got other things on your plate. Don’t waste time and money fixing mistakes that could have been avoided – ask lots of questions instead!
4. Keep all your business receipts
You should be able to provide all records to back up your spendings, so make sure you store all your receipts and invoices. Remember to keep your business receipts separately from your personal ones. This will let your accountant focus on the important things rather than wasting time on separating business and personal transactions.
If you want to reduce your manual admin and forget about the monthly receipt hunt, why not try Holvi? Holvi is a current account for small businesses and sole traders that does more than just list your transactions. It includes loads of useful features and is a comprehensive money management system designed to make your life easier. All the receipts from your incoming and outgoing transactions are safely stored in your Holvi account. You can also add attachments, such as invoices, to your outgoing payments. For transactions made outside of Holvi, you can use our expense claim feature that lets you easily file expenses and attach receipts to them.
Save a lot of money by keeping your receipts and invoices organised!
5. Get organised
Keeping your receipts and invoices in a reasonably logical order will make your accountant’s job much easier and save you a lot of money on accountant’s fees. You can also write notes on your receipts to explain what the money was used for. For example, some LaskIT customers use Google Sheets and Dropbox to share the details in the organised manner.
This is a guest blog post by Arttu Talvitie, Marketing Manager at Holvi. Holvi is banking for Makers and Doers — European entrepreneurs, freelancers and small business owners. The article has been edited by The Business Hacks Blog team, click here to read the original version. For more great accounting hacks, visit the Holvi Blog.