The 5 things business owners hate most about accountants

It's like they speak a different language, with their spreadsheets and financial reports that seem impossible to understand. And even when you try to ask questions, you often end up feeling more confused than ever.

If this resonates with you, you're not alone. In fact, there are some universal truths about accountants that drive business owners crazy. In this blog post, we're exposing those frustrations – the 5 things business owners hate most about accountants – and offering practical strategies to help you overcome these challenges. Because running a business is hard enough without the added headache of accounting woes.

Lack of communication and responsiveness

Many accountants are skilled at providing valuable services like P & L, tax returns, and business plans. However, they often struggle to effectively communicate the value of these services to their clients. This disconnect stems from a tendency to focus on outputs rather than outcomes. Clients don't necessarily care about the technicalities of a financial statement; they care about what it means for their business and their life. They want to understand the outcomes they can achieve through these services, such as increased profitability, reduced tax burden, and improved financial freedom.

To bridge this communication gap, accountants need to speak their clients' language and connect their services to the outcomes clients desire. One effective framework is to focus on "The Three Freedoms":

• Financial freedom:  Having sufficient cash flow to enjoy a desired quality of life.
• Time freedom: Achieving a healthy work-life balance and having time for personal pursuits.
• Mind freedom:  Enjoying peace of mind knowing their financial affairs are in order and risks are managed.

By framing their services in the context of these freedoms, accountants can clearly demonstrate the value they provide. For example, instead of simply offering "tax preparation services," an accountant could explain how their expertise can help clients achieve "financial freedom" by minimising their tax liability and maximising their cash flow.

What you can do

In addition to focusing on outcomes, effective communication also requires responsiveness and clarity.  Clients need to feel heard and understood. They value timely responses to their inquiries and regular updates on their financial matters.

• Establish clear communication expectations. From the outset, clearly communicate your preferred communication style and desired frequency of updates. Do you prefer weekly emails, monthly calls, or quarterly meetings? Make sure your accountant understands your needs.
• Schedule regular check-ins. Don't wait for your accountant to reach out. Proactively schedule meetings to discuss your financial performance, ask questions, and get strategic advice.
• Be clear and concise. When you do contact your accountant, be direct and specific with your questions or concerns. Provide all the necessary information upfront to avoid unnecessary back-and-forth.

High fees and hidden costs

You receive your accountant's invoice, and it's significantly higher than you anticipated, filled with vague descriptions such as "administrative fees" or "processing fees". Suddenly, you're questioning the value you're receiving and wondering if you're being overcharged. This lack of transparency around fees can erode trust and create unnecessary financial strain.

The impact

A strained budget, difficulty forecasting expenses, and potentially seeking cheaper (but less qualified) alternatives.

What you can do

• Demand a detailed fee structure. Before engaging an accountant, insist on a clear and comprehensive breakdown of all fees and potential charges. Don't be afraid to negotiate or ask for clarification.
• Explore fixed-fee options. Consider fixed-fee packages for specific services, such as bookkeeping or tax preparation. This provides predictability and helps you budget effectively.
• Use accounting software like Thriday:  Cloud-based accounting software like Thriday can automate many tasks, reducing the need for extensive accountant involvement and potentially lowering costs. Check how it can help your business here.

If you're consistently unhappy with your accountant's fees or billing practices, don't hesitate to explore other options.

They don’t speak your language

You sit down with your accountant to review your financial statements, but it feels like they're speaking a foreign language. Terms like "amortisation," "depreciation," and "accrued expenses" are used without explanation, leaving you feeling lost and confused. 

This jargon overload can create a disconnect between you and your financial reality, hindering your ability to truly understand your business performance.

The impact

Business owners feel disengaged from their finances and unable to understand the implications of financial reports, potentially leading to poor financial decisions.

What you can do:

• Don't hesitate to ask questions. If a term or concept is unclear, don't be afraid to ask for clarification. A good accountant will be happy to explain things in plain language and ensure you understand the implications for your business.
• Request simplified reports. Ask for summaries or visual aids that present key financial information in an accessible way. Charts, graphs, and plain-language summaries can be invaluable tools for understanding your financial position.

Tax time nightmare

It's tax season, and you suddenly realise your accountant hasn't filed your return. Or worse, they've made a mistake that could result in penalties. This not only creates a stressful situation but can also have serious financial consequences for your business.

The impact

Financial penalties, potential damage to your reputation with tax authorities, and the added burden of rectifying the situation, potentially requiring you to reconstruct lost records or negotiate with the tax office.

What you can do

• Choose your accountant carefully. Thoroughly vet potential accountants, checking their qualifications, experience, and reputation. Ask for references and inquire about their processes for handling tax filings.
• Maintain organised records. Keep meticulous records of your financial transactions throughout the year. This will not only make tax preparation easier but also provide a backup in case of lost or misplaced documents. Nowadays, you can snap receipts and log payments with Thriday. It allows you to easily capture and categorise expenses, ensuring you have a complete and accurate record of your financial transactions.
• Stay informed. Keep up-to-date on basic tax laws and deadlines relevant to your business. While your accountant is responsible for filing your return, it's ultimately your responsibility to ensure compliance. Resources like the ATO website (ato.gov.au) provide valuable information on tax obligations, deadlines, and relevant legislation.

Inaccurate or delayed financial reports

You eagerly await your financial reports, but they arrive weeks or even months after the reporting period, making them practically ancient history. To make matters worse, you discover errors and inconsistencies that make you question the accuracy of the information. This delay and inaccuracy can hinder your ability to manage cash flow, track performance, and make informed decisions.

The impact

Poor cash flow management, missed growth opportunities, and difficulty in securing funding. Inaccurate reports can also lead to poor decision-making, as you may be basing your strategies on flawed information.

What you can do

• Set clear deadlines. Establish specific deadlines for the delivery of financial reports. Timely information is crucial for effective decision-making.
• Embrace the AI. Implement AI-based accounting software like Thriday to ensure real-time access to financial data. This allows you to monitor your financial performance and identify potential issues promptly.
• Review reports carefully. Don't just glance at the numbers. Take the time to carefully review your reports, identify any discrepancies, and ask questions. Your accountant should be able to explain the information clearly and address any concerns you have.

By being proactive, communicative, and informed, you can transform your relationship with your accountant from a source of frustration to a valuable partnership that fuels your business success.

How Thriday can transform the way accountants work?

Thriday isn't just another accounting software; it's an all-in-one banking platform that transforms how accountants work and interact with their clients. Here's how:

• From reactive to proactive: Thriday provides real-time financial data, allowing accountants to monitor client performance and identify potential issues before they become problems. This means you can offer timely advice and support, becoming a true partner in your client's success.
  
• From number cruncher to strategic advisor: By automating tedious tasks like data entry and reconciliation, Thriday frees up accountants to focus on what matters most: providing valuable insights and strategic guidance. You can finally ditch the spreadsheets and dedicate your time to helping businesses grow.
  
• From confusion to clarity: Thriday presents financial information in a clear and user-friendly way, making it easy for clients to understand their financial position. This eliminates jargon overload and empowers clients to participate in financial discussions.
  
• From stress to seamlessness: With Thriday, tax season becomes less of a nightmare. Organized records and accurate reporting ensure a smoother process for both you and your clients.
  
• From outdated to up-to-the-minute: Thriday provides accurate, real-time financial reports, enabling clients to make informed decisions based on current data.
  

Thriday empowers accountants to build stronger client relationships based on trust, transparency, and proactive support. It's time to embrace the future of accounting and become the strategic partner your clients deserve.

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