Fire Your Accountant

The accountant has become indispensable in the business environment. He/she will act as business advisor as well. But are they in a position to advise? The old adage comes to mind. “accountants know the cost of everything, but the value of nothing”. Accountants are trained to be financially conservative, not risk takers.

The first person every person consult, when confronted with a tax, financial or business problem, is the accountant.This is understandable and encouraged, but do THEY have all the answers?

It might sound contradictory, coming from me, a qualified accountant, but lets explore this further.

* Tax Advice

Accountants are becoming the blue-eyed boys of tax authorities, worldwide, hence they required to register as tax practitioners, in some countries. Tax Practitioners are compelled in some countries , to divulge incriminating information to tax authorities. When called upon by revenue authorities to investigate tax payers, most accountants, gladly complies. Who collects tax checks, is it the tax authorities or the accountant?How many accountants really maximise, legal tax write-offs (deductions), that tax payers are entitled to?How many accountants, refuse to co-operate, when IRS or other tax authorities insists on an audit of information. All these questions, answer themselves.

* Financial Advice

As said before, accountants are financially conservative.It is a proven fact that accountants advise clients to “cut”, overheads, which unfortunately revolves around retrenchments or lay-offs, telephone and the marketing budget! Accountants are not marketeers, so forget about convincing him her other wise.

* Business Advice

Some accountants are highly qualified, with CPA or MBA behind their names. Theoretical knowledge in business, do not necessarily make a accountant an “expert”, on business.

What YOU expect from your accountant!

* Tax Advice

Wherever a loophole exists, or can be created, it should be exploited(If its legal of course!!). Accountants should prepare information in such a way, so that YOU are not financially compromised from a tax point of view. “Render under Caesar what is due”, ONLY WHAT IS DUE, not a penny more! An accountant should deal with the tax authorities directly, if threats of audits and enforcement action is made.The case should not be referred to tax attorneys, since they are excellent interpreters of tax laws, but sometimes lack the skills to perform the tabulations/calculations, that could be required. No private deals to be concluded between tax authorities and accountants. You have a right to be informed, not bullied and coerced.

* Financial Advice

Advise you to control expenses, yes, but expenses can only be “cut”, to a certain extend.You should rather be advised, on ways to boost sales! You dare not tamper with that marketing budget! Lay-offs or retrenchments, should always be the very last resort.Valuable skills and/or potential skills are lost in this process.Research has shown, that highly motivated and renumerated employees, actually generate more sales and cash flow for a business. Accountants are expensive, why cant they slash their hours or fees from time to time, to ease your cash flow? They don’t, so its time they start earning that fee.

* Business Advice

He should respect YOU, as an entrepreneur, that became a success in business, despite all the obstacles.Its because of YOU, that the business exists, not him or her.Whether you are educated or not, the accountants “book knowledge”(CPA/MBA), cannot help YOU much when a business need to be turned around or rescued. YOU have the ultimate responsibility, to save your business. YOUR business advisor, should MOTIVATE you regularly. Not with theories and sermons, on business “models” and strategies. YOU understand your business, not him. You have learned from EXPERIENCE not KNOWLEDGE.

Harsh generalisations yes. But a lack of understanding sometimes exists of the way small business operates.None of the above should be construed as a direct attack on accountants, some excellent accountants are serving business, corporations and communities.

Clients rely too much on accountants. Give 70% and the advisor can give 30%, not the other way around. This also explains business owners frustration with their advisors, since they expect too much, and that is the thrust of what I am attempting to highlight in this article.

TAKE RESPONSIBILITY

Sean Goss Small Business Consultant website: http://www.sgafc.co.za

Author: Sean Goss
Article Source: EzineArticles.com
Excise Tax