Accountants as leaders: An Ox or a Moron?

OPINION: Yeah right. Accountants have never been regarded as thought leaders. More steeped in the past, as the World’s second oldest profession. Even Double Entry bookkeeping has been around for 500 years.

Brown suits and cardigans, visors and green pens, the scourge of business; a necessary evil. Devoid of personality.

Surely they are doomed, their days are numbered, what with internet based accounting systems and computers and that.

Well, if you think that, then you're not using your accountant properly. Sure, someone has to do that statutory stuff, compliance and tax returns; but that same someone has a special knowledge of, and insight into, your own business and any number and types of similar businesses.

Use your accountant properly and you will prosper. An accountant should lead you to better performance, enhanced profit, and protect you against the worst.

It is, of course, a two way thing. You have to get past the worry that you will get charged for the advice, and the accountant has to realise the advice is worthless if there is no value added.

A bit of a Catch 22, but the main reason clients change accountants is perceived as being price, though, of course, the real reason is value for money. If you are not getting value, then what you are paying for is, by definition, too much.

Demand value added from your accountant, and realise that, if you are not prepared to pay for it, then that is false economy.

For a start, your accountant should be working with you on your strategic and business plans, thinking forward, on where you see your business going, and how to make sure you get there.

At a minimum, your accountant should be looking forward with your budgets and cashflow forecasts.

But your affairs are much more than business; they are an intersection of your business, personal and financial affairs; i.e. earn it, keep it, grow it.

As soon as you realise that your accountant should be there to help you as a business adviser and mentor; and you get in the habit of checking before you make your business decisions, you will prosper.

How about getting your accountant to meet with you monthly or quarterly to discuss your Key Performance Indicators, let them help you understand your margins and profit drivers.

This common sense stuff, gleaned from years of seeing similar issues with other clients, should be gold to a business just waiting to improve.

Ironic, really, that thought leading accounting is based on simple, old fashioned, values and experience. It's a back to basics mentality that can set you up for the future; nothing magical in that; but it sure works!

Adam Davy is Managing Partner of BDO Chartered Accountants and Advisers' Wellington office