What Should I Ask My Accountant or Bookkeeper?

Maximizing Your Financial Partnership

Many business owners treat their accountant or bookkeeper merely as a compliance necessity—someone to file taxes and reconcile accounts. However, these professionals possess a wealth of financial knowledge that can help you grow your business and increase profitability.

To get the most out of your relationship with your financial professionals, you need to ask the right questions. A proactive conversation can uncover hidden tax savings and improve your cash flow.

Questions About Cash Flow and Profitability

Understanding your financial health goes beyond looking at the bank balance. Ask your bookkeeper to explain your cash flow statement. Are you burning through cash faster than you earn it? How long does it typically take your clients to pay their invoices?

You should also ask about your profit margins. Which products or services are the most profitable, and which are dragging the business down? A good bookkeeper can pull reports that clearly illustrate these metrics.

• How can I improve my current cash flow?
• What is my break-even point?
• Which expenses are increasing faster than my revenue?
• Are there any unnecessary subscriptions or costs I can cut?

Questions for Tax Planning

Tax planning should be a year-round activity, not just a scramble in April. Ask your accountant how you can legally minimize your tax liability. Are you structured correctly (e.g., sole proprietorship vs. corporation) for your current level of income?

Inquire about upcoming changes to tax legislation that might affect your industry. Also, ask for advice on optimizing your personal compensation strategy, balancing salary versus dividends.

The Value of Proactive Advice

Finally, ask the most important question: 'Based on what you see in my books, what should I be doing differently?' Your financial professional has a unique, objective view of your business's inner workings.

By initiating these conversations, you transform your accountant or bookkeeper from a historical record-keeper into a strategic advisor who is invested in your future success.