How Much Should An Accountant Know About Your Finances?

Should your accountant know everything about your finances? Should they know how you buy your groceries and how you pay your bills? The answer to that question depends on who you are, your business and how much you are comfortable sharing with your accountant. 

This blog takes a look at different issues businesses should consider when deciding how much of their finances to share with their accountant.

Should an accountant know everything about your company?

When it comes time to hire an accountant for your business, it is important to know what you’re looking for. Not all accountants are created equal, and you will want to make sure you find one that has the specific skills and knowledge you need.

One thing to consider is whether or not the accountant should be familiar with everything about your company. In some cases, it may be necessary for the accountant to have a deep understanding of your business in order to provide the best possible service. 

However, in other cases, it may be more appropriate for the accountant to just deal with the financial aspects of your company.

Ultimately, it is up to you to decide what’s best for your business. But here are a few things to keep in mind when making your decision:

1. What services do you need?

Some accountants are generalists and can provide a wide range of services. Others may specialize in a certain area, such as taxes or bookkeeping. Make sure you hire an accountant who has the skills and knowledge you need to get the most out of their services.

2. How familiar do you want them to be?

If you need the accountant to have a deep understanding of your company, you will need to find one that is familiar with your industry and your business. In some cases, this may be someone in-house, or it may be necessary to hire a consultant.

3. What’s your budget?

Accountants can be expensive, and the cost can vary depending on their experience and the services you need. Make sure you have a realistic budget in mind and do not be afraid to ask for a quote before you hire someone.

Hiring an accountant is an important decision for any business. By considering these three factors, you can make sure you find the right one for your needs.

What if you are self-employed?

Things are a little bit different for the self-employed.

Accountants who work with the self-employed should be well-versed in the different areas of business in order to provide the best advice possible. This includes knowing the ins and outs of the specific business, as well as general tax laws that may apply.

Many self-employed individuals make the mistake of thinking that they do not need to keep good financial records. While this may be the case for some businesses, it is important to consult with an accountant to find out what is required in order to stay compliant with the law.

An accountant who is familiar with the self-employed can help with a variety of tasks, such as:

-Establishing and maintaining accurate records of income and expenses

-Producing financial statements

-Determining the tax implications of business activities

-Filing tax returns

-Advising on pension and retirement planning

While an accountant should be knowledgeable in all areas of business, it is important to remember that they are not magicians. They cannot make money appear where there is none, nor can they predict the future. 

So, before meeting with your accountant, have a realistic idea of what you would like them to help you with.