5 reasons your accountant should not run your business!

Posted by Michael Sausman on March 6, 2012 at 7:45 PM

Its been a busy week – another week with another new client who is in trouble because they were not getting the right advice.  I love accountants – don’t get me wrong – its just that they are only very rarely experienced business managers or consultants.

1.       Accountants are highly trained – to give tax and financial advice.  Would you ask your bank manager to design your marketing programme?  Or your website designer to recommend a new car for you?  So why would you ask your accountant to help you with business strategy or running your business?

2.      Your accountant will organise your accounts for his ease of use; your schedule of accounts needs to give YOU easily understandable information on your business, with expenses grouped together under headings such as marketing, production, IT, telecoms etc.  Make your accountant work for you, not the other way around.

3.      YOU understand your goals, why you are in business and where you are going.  If you don’t, then you need to think about it urgently and write a (basic) strategic business plan now!  Explain it to your accountant by all means but it is YOUR business.

4.      Your accountant will probably charge an hourly rate – make sure you are only paying for their area of expertise.  Use a business mentor, coach or consultant if needed – it will be cheaper and more helpful in the long run.

5.      Finally, do your accountant a favour and let them do their job – listen to their advice and then make the decisions based on what’s best for your business.

Do you have views on this? Let me know  @MSatBBS

Categories: Business Planning, Make More Profit, Business Help