When does an accountant stop being seen as a cost

When does an accountant stop being seen as a cost? When they are part of your management team.

Today’s accountants have a wide range of powerful tools and technologies at their disposal, enabling them to add more value to their clients’ businesses than ever before. Much of the basic compliance work and data entry that traditionally made up the bulk of an accountant’s work is now taken care of by cloud accounting and bookkeeping platforms. These platforms put up-to-date financial information at the fingertips of accountants (and their clients), so that they can focus on higher value tasks such as providing detailed management accounts.

Having access to up-to-date financial information helps you to make more effective, data-driven decisions about your business. The cloud also makes your accounting more collaborative than ever before – multiple users can (securely) access the dashboard from any location with an internet connection, meaning your accountant can take the role of a Virtual Chief Financial Officer (VCFO) without needing to be based at your office. They can easily integrate with your business and effectively become part of your management team.

Just like the best businesses, the best accountants are proactive and future-facing (whilst still maintaining the ability to react and adapt quickly, when needed). A great accountant will regularly discuss your business’ s key goals and objectives with you. Using the data from the cloud, they can help to ensure you remain on the right track and flag potential issues early. Having a true and up-to-date picture of the financial health of your business helps you achieve your commercial goals and key business objectives.

The key benefits of having frequent and up-to-date management information include the ability to:

• Make better quality business decisions using timely, accurate information
• Increase profit by monitoring performance against budget
• Increase cash flow by monitoring working capital
• Spot issues early and proactively address them
• Increase sales by focusing on leading indicators around sales and lead generation
• Increase margin by analysing your key business drivers
• Use this information to manage your business more effectively

How many businesses have we seen come and go because they didn’t keep a close eye on their key financial performance? Most business owners that receive management accounts on a regular basis find them invaluable. What better way to keep your finger on the pulse of your business? This is often the point when business owners stop seeing their accountant as a cost and instead see them as a crucial member of their management team.

Your management accounts can be delivered through a user-friendly online dashboard, so you don’t need to worry about trying to negotiate huge, complicated spreadsheets or reports! Beyond delivering this information on a regular basis, a great accountant will also bring their knowledge, experience and network to your business.

So, let me leave you with this question: Is your accountant currently a key part of your management team?