It’s time to talk about something that’s important for entrepreneurs and business owners like yourself.

That’s right, we’re going to talk about why you shouldn’t cut ties with your accountant.

I get it, sometimes you may feel like your accountant isn’t really adding value to your business.

Maybe you don’t see eye to eye on certain things, or perhaps you’re not getting the level of service that you think you should be receiving.

Understandably, you might start to question whether or not you need an accountant at all.

But before you go ahead and cut ties, let me give you a few reasons why you should reconsider.

Three reasons why cutting ties with your accountant is the #1 mistake that could cost you, your business:

1: If you don’t have a good handle on your finances, NOW IS NOT THE TIME to try to go it alone. 

As a business owner, your time and energy are precious resources.

Attempting to manage your finances without the help of an experienced accountant can take up valuable time that could be spent on growing your business.

Luke is a good example of this. He was recently convinced by his wife that she could handle the day-to-day financials of their business.

Little did they know what she thought was a cost-saving measure ended up costing them thousands of dollars in lost revenue due to mistakes she made in their bookkeeping.

This not only cost their business but put a real strain on their marriage.

Thankfully, Luke quickly got back in touch and reengaged our services.

2: Even if you think you can save money by doing your own taxes, there’s always the risk of making a mistake that could cost you dearly down the road.

You may think that filing your taxes on your own will be an easy task and that it won’t take too much time, but it’s important to consider the potential consequences of filing incorrectly.

For example, we recently had a client, Andrew decide that they could save money but doing their accounts by themselves, however, a few months later, they realised that due to some tax changes, they now owed the government a lot more than they originally thought.

This has had a devasting impact on their cash flow and was too consequently too late for us to reverse.

3: Getting rid of your accountant sends a message to both your employees and your investors that you’re not serious about running a financially responsible operation

Your employees and investors want to see that you’re taking a proactive approach to managing your finances and making decisions that will keep the business profitable and sustainable.

By cutting ties with your accountant, you’re signalling that you may not be up to the task of managing your finances effectively.

This can erode confidence in your business and make it harder to attract and retain top talent and investment.

Matthew and his business partner are a perfect example of this. They had owned and operated a successful manufacturing business for a number of years, however, were now looking at bringing in an investor to help them expand their operations.

Matthew contacted us to help prepare all the required documentation and financial information that will be needed to demonstrate the financial health of their business.

Unfortunately, his partner had recently decided to do away with a professional accountant thinking they could save money.

Consequently, this made it much more difficult for Matthew and his business partner to prove the long-term potential of their business, as they now lacked several key pieces of information.

Matthew contacted our offices just the other day advising that the investors were reluctant to put any money into the business,  due to the lack of documentation they had.

A mistake Matthew will not be making again!

Conclusion:

So, if you’re considering moving away from an accountant, I urge you to reconsider.

Having an experienced accounting professional on your side can save you time, money and protect your business in the long run.

Don’t take my word for it; there are thousands of small business owners out there who can attest to the value of having a good accountant.

I’m sure they would agree that it’s well worth the investment!

So, if you’re thinking about moving away from an accountant, take some time to consider all the benefits of having one on your team, as well as any potential risks that may come with not having one.

With the right accountant on your side, you can take your business to new heights and achieve the success you deserve!

What to do next?

If you’re serious about gaining control over your expenses and keeping your business successful, contact Insight CA today.

Our team of chartered accountants are dedicated to providing the guidance and support you need.

We have the expertise and experience necessary to help you make informed decisions that will benefit both your finances and your future.

Don’t let financial stress hold you back any longer – take the first step towards financial stability and contact Insight CA now.

We look forward to hearing from you!

Are you a new business owner? If so, we recommend reading this article next. Learn the importance of being able to make confident financial decisions from a first-time business owner.

Are you struggling to make your business work?

Insight CA Limited is a team of experienced Auckland-based chartered accountants and business advisors who can help. We’ll give you the power to see what’s really happening in your business, so you can take control and start making progress. Click here to learn more about how we can help you achieve your goals.