‘Are you a proactive accountant or a reactive accountant?’ This question should be on the tip of every small business owner’s tongue when looking for a new business accountant.
If you’ve never heard of the term proactive accountant before, the chances are you have only been dealing with their reactive sister. A reactive accountant waits for events or problems to arise for their client and then provides a specific solution to the current circumstance. For example, if there is no flow to their client’s cash, a reactive accountant will swoop in and save the day with a tailored solution to this issue.
However, the client’s cash flow issues could have easily been foreseen and nipped in the bud if they were working with a proactive accountant from the get-go. After all, prevention is better than a cure. So, proactive accountants, who are they, what do they do, and do you need one? Well, we’re glad you asked.
Say hello to proactive accounting with the gift of foresight.
No need to go shopping for a crystal ball, we are not talking about psychic abilities here, we are talking about educated, data-driven assumptions.
If you keep your books up to date, your strategic accountant can be proactive by analysing your numbers in real-time. In doing so, your accountant can create and implement systems, processes, and plans that set you up for long term success. Imagine budgeting to proactively plan for growth and preparing for tax well in advance, as opposed to scrambling at the end of the month. You will also be able to proactively manage new opportunities for your business and quash threats before they even emerge.
If you have ever had to cough up money due to financial penalties or pulled an all-nighter to meet a deadline, a strategic accountant will help you take preventive measures to ensure you hit the nail on the head every time. In fact, it would be a challenge to miss your deadlines with the calendars and reminders we implement.
The gift of growth.
Reactive accounting may keep the taxman happy but it only tells the stories of your past.
If you are running a small business then chances are you are making a million decisions a day and you don’t have time to spare to um and ah over every one of them. Having a clear and thorough understanding of how your business is currently faring means you can swiftly and effortlessly make business calls that will keep you on track with your goals. If you want to be in control of your business, as opposed to letting your business control you, your accounting and business goals will need to work together harmoniously. Proactive accountants can help you lay down a strong foundation for growth by synchronising your goals and putting your business strategy into action.
The gift of knowledge.
Your accounting shouldn’t feel like an attempt at cracking the Davinci Code. Proactive accounting is all about empowering you with the knowledge and insights you need to make sense of your numbers and make informed business decisions. To realise this, proactive accountants will need to look at your numbers in real-time from well-kept books. All of this data can be analysed and interpreted into real-world solutions.
The tangible solutions your strategic accountant can create include everything from providing tax strategies and budgeting for growth to bookkeeping and being your virtual CFO. Proactive accountants can even put you in touch with professionals to mitigate future problems like estate planning, insurances, and superannuation.
Redeeming your gifts.
Proactive accounting is all about finding out why you are in business and utilising your accountant to help you fulfil that mission. Whether you are looking at planning your cash review for asset protection purposes, a proactive accountant will be invested in your business’s long term success.
If getting paid on time still feels like a gruelling uphill climb, you don’t have to do it alone. At Orbit, we speak in your language to provide tailored and proactive advice that will help you reach not only your business goals but your personal ones as well. If you are chasing strategic and accessible accounting for your small business, book a chat or get in touch today, to see how we can help you make more possible.
