For most Atlanta business owners, the beginning of the year is a time to focus on growth goals and new opportunities. Whether it’s a nonprofit looking to expand programs and services for Georgia residents, a construction company looking to expand or a growing start-up seeking to establish their brand, the excitement of opportunity seems freshest at the top of the year. The early months are also the time of year many are focused on getting business taxes completed. It’s common during this time to “check in” with their accountant to address issues, ask questions and provide the requested documentation. This is often the most communication many will have their accountant, and unfortunately, the experience can leave some wondering if it’s time to change accountants. Poor communication, including a failure to return calls or emails, limited or no updates on important tax changes or discussions about tax planning act as the catalyst for the change decision. To help clients, prospects and others evaluate their accounting relationship, Wilson Lewis has provided a list of red flags that indicate it may be time for a change.
Top Signs It’s Time to Change
- Fails to Return Calls/Emails – In any relationship, business or personal, regular communication is important. This is especially true when there is a question or issue that needs to be addressed and requires your accountant’s input or perspective. For this reason, it’s important that your accountant returns calls and emails in a timely fashion. It’s hard to believe your business is a priority to an accountant that regularly fails to return calls or emails. In fact, this behavior can send another less pleasing message. If you find your accountant regularly fails in this area then it may be a sign that change is needed.
- Always File an Extension – Business taxes can be complex and require the knowledge and training of a seasoned accountant to complete the filings before the filing deadline. While there are certainly valid reasons for why an accountant would file for an extension, it should not be an annual event. There are drawbacks to filing for an extension that need to be considered, and those should be clearly communicated. If the business is providing requested documentation in a timely manner, but is always being put on extension, it may be a sign that change is needed.
- No Time for Tax Planning – Most businesses would rather invest their earnings in the company including its production, development, marketing or human resource programs than pay extra in taxes. While its true taxes are a necessary element of doing business, it doesn’t mean your company should pay more than is required. It’s necessary for your accountant to not only understand operations, but also be aware of changes happening in the business throughout the year in order to give tax planning advice. If the discussion never arises, or occurs at the end of the year, the opportunity is lost. If your tax planning is limited to a single discussion with seemingly little important information, it may be a sign that change is needed.
- Updates on Tax Changes – One of the most important things an accountant can do is educate their clients about important tax changes (and how it will impact their situation). Education empowers business owners to think differently and creatively about their situation. Since tax reform was enacted in December 2017, there has been no shortage of information on how businesses can be impacted by the sweeping changes. From the reduction of the corporate tax rate, to introduction of incentives like the Qualified Business Income Deduction (Section 199a), to the benefits of opportunity zones, there is much to consider. If your accountant is not providing updates on tax changes and how it may impact the company, it may be a sign that change is needed.
- Paints a Very Bright Picture – Optimism is an admirable trait and one that has its place in the business ecosystem, but can also create issues when unrealistic. Accountants are by nature numbers oriented and usually look at past performance when making estimates. It’s important these estimates be “realistic” and focused around reasonable expectations. If your accountant regularly paints a “very bright picture,” then it may be a sign that change is needed.
Contact Us
Now that tax season has come to an end, it’s important to make an honest evaluation of your accounting relationship and determine if it’s time for a change. If you have questions about your experience or need assistance with an accounting, audit or tax question, Wilson Lewis can help. For additional information please call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.