4 Tips for Working with your Accountant

Yes, it IS possible to have a good working relationship with your accountant! (Hey, don’t shoot the messenger, alright?)

Here are some tips for creating a great working relationship with your Accountant. These tips come with the added benefit of saving you money on your yearly accountant’s bill.

Accurate records: Start by asking your accountant for a list of items s/he will need from you (e.g., access to your accounting software program, prior years tax return, etc.) and by what date. The more prepared you are and the more accurate your records, the easier and less expensive it will be for your accountant to work with you. Financial records that are messy or incomplete cost everyone time and money. And, at $250 — $350 per hour, it’s expensive for your accountant to do that clean up work.

Practical Timeline: Next, work together on creating a calendar of key filing dates and remember to include the due dates for deliverables. For example, Uncle Sam may accept your tax return on April 15th, but your accountant most likely wants your financial records a month in advance. The work your accountant is doing will determine how much tax you pay, so it’s important to give them ample time to get it right. In addition, by being on top of these dates, you will avoid penalties and interest on any overdue taxes owing.

Status updates: From the start, agree on how often you and your accountant will check in with each other. My recommendation is that you should meet or check-in with each other at least 3x per year:

• March: At tax time, to complete your tax return.
• June: A mid-year check-in. Now is a good time to ask your accountant to estimate your year-end tax bill. If for no other reason than to avoid sticker shocker at year-end. This approach has another benefit: it gives you time to take action. You can either take advantage of your accountant’s tax saving suggestions or start making estimated tax payments.
• December: A final check-in. Avoiding surprises at tax time is the sole purpose of this meeting. If you’re lucky, your accountant will have some tax saving advice that you can implement in the month to lower your tax bill.

Timeliness: The faster you and your accountant can deal with issues that arise, the better the end result and the lower the costs. So, be available and respond quickly to your Accountant requests. If you are not available or take too long to respond to questions, your file might find itself back in the queue. Saying that, your Accountant should also give you ample notice and respond to you in a timely manner.

Happy Accounting!

Originally published at facingthenumbers.com on April 1, 2016.