What to look for when engaging an Accountant, Business Advisor or Business Coach

Choosing the right accountants for your business should be more than just about the fee they charge you – in fact whilst this needs to be a consideration it should always come secondary.

The first question that needs to be asked is ‘what do I need them for?’

• To complete compliance work on my behalf – annual taxes, business activity statements etc.
• To help grow your business?
• To solve a specific problem?
• To help build upon existing skills or close a skill gap?
• To provide ongoing feedback and support?
• To review and mitigate business or operational risks?

Let’s face it, business accountants, advisors, consultants and coaches are increasingly common. Naturally however, not every accountant, business advisor or business coach performs up to the same standards or conducts/provides the same services.

So, engaging a business accountant is one of the most critical moves a company or business owner can make. This can often spell the difference between success and failure.

We like to think an accountant should be just like a family doctor, having the experience to deal with many common ‘medical issues or challenges’ faced by business owners. In fact, just like your GP, your accountant should be focusing on, and working with you to improve your business health.

Why is business health so important you ask? Small business survival rates in Australia continue to be an area of concern – this is even before the impact of COVID-19. According to the Australian Small Business & Family Ombudsman’s most recent report, the survival rate over a four-year period:

• Sole operators – 59.6% [meaning almost 1 in 2 fail]
• Micro business [1-4 employees] – 69.3%
• Small business [5-19 employees] – 77.6%
• Medium business [20-199 employees] – 82.2%
• Large business [200+ employees] – 85.6%

What’s even more alarming is the 52% of small business owners registered with the ATO as individuals earn between $0 and $25,000. Personally, I don’t consider this business survival – the business owner may be far better off simply going to get a job.

What these results indicate is that if businesses can grow healthily, they will more likely not only survive, but thrive!

Insert the right accountant, business advisor, consultant and/or coach. Their role should be to support business growth by providing guidance and advice broadly, strategically and as important - frequently!

Let me finish with this – what is the cost of not engaging the right accountant?