When people think of accountants, the first things that often come to mind are tax returns and financial statements. However, a great accountant should be a strategic partner who asks the tough questions that drive business growth.
Take, for example, a recent conversation we had with a potential client who runs a successful medical practice with multiple doctors and shareholders. Their current accountant was providing them with ‘coaching’ but they were frustrated because the coaching was largely focused on simply reporting profit each quarter. What they needed was comprehensive, forward-thinking advice on key business decisions.
Here are some critical questions an accountant might ask this business instead:
- Are the roles in your practice structured for success? In this case, their administrative staff member was managing everything from banking and bookkeeping to receipting payments. The accountant should help the business assess whether duties need to be separated to ensure efficiency, reduce errors, and mitigate risk.
- What’s the profit impact of adding another Doctor? Adding another doctor could increase revenue, but what’s the real incremental profit? A forward-thinking accountant can help map out the financial impact of such changes and assess whether the return on investment justifies the move.
- Where is your business underperforming? Every business has areas for improvement. An accountant can use benchmarking data to identify where your practice lags behind, and offer insights to help you turn things around.
- What aspects of your business may be costing you money? Sometimes, certain operations, staff, or processes may cost more than they contribute to the business. An accountant with a strategic mindset will help uncover these inefficiencies with you, and provide recommendations on how to optimise for profit.
- How will you handle shareholder disputes? With multiple shareholders involved, disputes are a potential risk. Does your practice have a plan in place for managing these conflicts eg. through the use of a shareholder’s agreement?
- Should you consider buying the building you operate from? Owning the property your business operates from can offer long-term financial benefits. Your accountant can assess whether purchasing the building – or a similar one – makes sense, taking into account cash flow, tax implications, and investment returns.
- Are you working too hard? Many business owners spend long hours working in their business, but an accountant can help you evaluate whether this level of involvement is necessary. For instance, could hiring another doctor allow you to take a well-deserved day off without affecting profits?
- How can you grow your wealth? Whether it’s through investments, restructuring, or retirement planning, your accountant can be a key partner in building your financial future.
Why Accountability Matters
A good accountant goes beyond the numbers, holding you accountable for making changes that drive real business improvement. By asking tough questions and challenging your decisions, they help keep you on track to reach your goals.
If your business needs deeper strategic advice, it may be time to rethink your accountant’s role. Contact your local Accru office to explore how their Coaching Program can lead to greater success.
