Xero recently did a survey of 400 accountants, and many said the same thing. They want to hear more from the businesses they work with.
A breakdown in communication
An excerpt from the article says:
The survey, by the small business accounting software developer Xero, polled a group of accountants, some of whom use the software and some who don’t. When asked what is the most common mistake small business owners make when it comes to their finances, 32 percent said it was only talking to their accountant during tax time (up from 25 percent last year and 18 percent in 2012), 20 percent said it was a lack of understanding when it comes to their tax obligations (up from 18 percent in 2013 and 13 percent in 2012), and 20 percent said it was not having real-time insight into their finances (up from 13 percent in 2013 and down from 26 percent in 2012).
I think there is a problem with this paragraph. Is there a problem with communication between accountants and businesses? Yes, and we had Kahuna Accounting have seen a lot of those challenges.
But is it all the fault of business owners, or should accountants take some of this responsibility?
A broken system
From what I’ve seen, nobody should be surprised at this lack of communication. From the business owners we’ve spoken with, most are told what they need to do is 1. Get their business set up in an accounting software and 2. Hire a CPA to do their taxes.
Most business owners don’t know what they need to know or do with accounting. They want to do the minimum to get by, because they aren’t accountants and they don’t make money in their business by doing accounting. Rarely is a business coached, supported or encouraged to collaborate throughout the year.
Yes, businesses need to take accounting seriously, but the accounting professionals working with them need to make sure they know what the expectations are and the best ways to succeed.
Throughout the article you have mentions of consistent communication with the accountant without mentioning how much that ongoing communication is going to cost the business owner. If it’s an hourly cost, then that’s not appealing for a business owner.
What if You Could Have Affordable Collaborative Accounting?
The problem is most businesses are somewhere between a “DIY” approach and “Done for you.” They try to get by on their own, because they can afford it, then they try to get taxes done for them because it’s what they have to do.
It’s a broken system that’s going to lead to exactly what this survey found: Poor communication, messy books and a frustrating tax season for everyone.
Kahuna Accounting is aiming to fix this broken system with a “Done with You” approach.
What that means is you have a professional accounting staff that has your back. We aren’t a CPA firm and don’t do taxes. We make sure you have everything right, and we’re there for you always – with no hourly charges. Call us anytime. Email us anytime. And you’re still in your monthly subscription. There are no hourly costs, so there is no fear of asking questions or making sure you’re on the same page.
Then at tax season we make the connection with your CPA to ensure they have all they need for taxes. All the while, you as a business owner can focus on what you actually want to focus on, which is not bookkeeping.
Collaboration with the right professionals is where the future of accounting and bookkeeping is. It’s the best of both worlds. Businesses get the help and oversight they need and accountants get to see the information they need.
Now it’s the job of accountants to make that collaboration as easy as possible for businesses.SEE HOW COLLABORATIVE ACCOUNTING WORKS