Staying on top of your accounting with annual reviews of your financial position could be a no-
brainer for some people, but it’s a big deal with big questions for others.
Big questions can lead to a cascade of other issues, becoming a whirlpool of overwhelming
worry if you don’t fully understand your own numbers.
The last couple of years has been a rollercoaster, and we are fast approaching June 30th. We
are all surviving, reviving, or thriving during this extended period of chaos we’ve called COVID-
19, meaning there’s no better time to have a that conversation with your accountant about
preparing for the next step.
Here are some questions we think are the most important to ask your accountant around the
mid-year mark, highlighting the importance of your accountant’s role regarding digging
through your finances.
Your accountant will have an in-depth viewpoint different from yours that can reveal various
problem-solving passages to issues you might be having. They’ll also spot better, more
effective ways to hit those financial targets you’ve always yearned to reach!
So trust your accountant, trust the process, and let's get stuck in.
1. Are we taking advantage of every opportunity we can to save money?
For most of us, it's been a challenging time financially amidst the pandemic. You’re likely one
of the businesses that have suffered during the perplexing 2020-present period and may still
be enduring, or hopefully recovering from the monsoon of confusion and uncertainty that’s
been thrown at us. Regardless of your position, it’s best to ask questions about how you are
actively saving money and how you can save more.
Important areas you can ask about include:
Staff reductions
Equipment expenses
Power / water usage
Advertising costs
It will also be beneficial for you to ask your accountant about what you have managed to save
this year and about the parts of your business unnecessarily draining your budget.
Anytime is a good time to ask how you can save more money. Saving doesn't have to be
through expenditure, it can also be achieved through a range of other reductional means.
There might be areas of your business that are generously over-staffed. Maybe one of your
business activities is consuming more manpower than it has to? Perhaps there’s now a product
available to replace staffing requirements?
There could be multiple ways to save money that you just haven't taken the time to look for
yet. Remember, saving money can be just as important as making it.
2. How can we best optimise our remote work setup now to be cost-effective with
our current situation?
Creating a remote work setup was essential for some businesses, as it was the only way to
keep them running. Unfortunately, many companies had to scramble to find the best way to
create a functional online workspace, resulting in a rushed and oftentimes ‘messy’ job.
We are further down the line now. Time has proceeded and people are more accustomed to
the online space. Likely, you have not revisited your work setup functionality since you first
struggled to get it started. It might be time to ask yourself which ways you could help your
online space to become more efficient. Possibly it could become a more functional or more
time-efficient space, but this is an excellent time to dig deep for those improvements.
Along with improving your online operations, it's time to ask your accountant how the online
work shift affected your finances.
Did having staff work remotely save money?
Could it make financial sense to have individual staff continue working online?
What could be improved in our online space for a better financial fit?
It is worth digging deep into this part of your business to discover what you can fine-tune to advance financially?
3. Does my current business structure suit my current business situation
financially?
This is a brilliant question to be asked annually, whatever your situation is, especially if a
global pandemic has rattled you. The pandemic shook many businesses to their core, and of
course, their core is their finances. It may be time to revaluate your structure and decide if it is
still the best angle for your financial situation.
4. What targets can be set for the next financial year, and how can we best stick to
these goals?
This one might be the holy grail of queries to set you on a clear path from July 1st. We
mentioned earlier how a big question could become a cascade of others. This is one of those,
but not one full of overwhelming worry.
Instead, this can be filled with opportunity, hope, and improvement. Set aside a good chunk of
time to talk to your accountant about your upcoming financial year. It is a time to set targets,
find out what's working and what's not.
Some topics to ask about:
Upcoming changes in tax law that could affect your business
How your accountant can help you to manage your cash flow better
What targets you managed to hit this year and which ones you didn’t quite reach
Maintaining a strong relationship with your bookkeeper & accountant is essential when
running a business. Asking questions, having regular meetings and getting detailed run-downs
can make a big difference, helping to keep your finances organised and up-to-date.
Staying updated is critical. Although hiring a bookkeeper to deal with your books is a crucial
first step, asking your bookkeeper, accountant or Profit first professional the right questions is
the key to preserving a healthy financial position in the long run. So stay on the ball, keep a
close eye on all elements of your business and good luck with the next financial period ahead!
Contact Ironbark Industries Bookkeeping today to discuss our bookkeeping and profit first
services, your specific requirements or any other financial management enquiries.
