I know as human beings we’re not always keen on change. It’s time consuming, sometimes costly and it’s a leap into the unknown. But carrying on with the same old advisors just because you’ve always used them may not be a sound business decision and with the end of the tax year only a few months away now is a great time to consider who you want as your advisors next year.
Here are my suggested questions for anyone who’s made a New Year’s resolution to change their accountants or financial advisors.
Ask the following and think carefully about the answers you get:
- Do you provide comprehensive monthly management accounts and advice on what actions you should be taking?
- Do you offer specialist, detailed tax planning advice in relation to property you own within the business?
- Can you recommend legitimate and innovative tax saving strategies to cut Directors’ tax bills?
- Are you able to help with advice on succession and exit planning so that your family get the maximum benefit from your hard work over the years?
When you meet with them they should:
- Explore ways you can pay less tax
- Consider ways to protect key business assets and directors loans
- Discuss how to improve financial control in your business
- Check for opportunities to improve profits and monitor key performance indicators
- Discuss ways to work less and develop the management team
- Discuss ways to use pension to extract profits, invest in property or fund the business
If they don’t they’re probably not the right advisors for you and your business.
Oh, and on the subject of change – it doesn’t have to be difficult. In the case of switching accountants it’s all about the paperwork, which any accountancy firm worth it’s salt will do on your behalf. So you can just sit back and relax, ticking off one of your resolutions for 2011 at the same time.
Andy Parker
Chartered Accountant