Managing finances is fundamental for the success of any trade business. For tradies without time or expertise in bookkeeping and tax services, a qualified accountant can prove invaluable.
Tradie accountants go beyond just filing tax returns. They aid in accounting, bookkeeping, and complex tax matters, providing insights into your business’s financial health. Hiring a knowledgeable tradie accountant ensures you can focus on growing your business while they keep an eye on your financial records.
Questions to Ask Before Hiring a Tradie Accountant
Are You a Registered BAS Agent? What Are Your Professional Credentials?
The Tax Agent Services Bill 2010 mandates that anyone providing BAS services must be a registered BAS agent. Ensure your accountant meets this requirement and has at least Certificate IV Financial Services qualifications. Membership in institutions such as the Association of Accounting Technicians (AAT) or the Institute of Certified Bookkeepers (ICB) is a plus.
What Experience and References Do You Have?
Experience in your industry is crucial. Ask about their previous work with businesses like yours and seek references. While reviews can sometimes be biased, credible sources and independent review sites can provide valuable insights.
Where Will You Work From?
Clarify whether the accountant will work on-site, off-site, or remotely. Establish effective communication channels if they work remotely, prioritising direct contact methods like phone calls over emails to ensure swift and clear communication.
What Do You Need to Get the Work Done? How Safe Is Your Data?
Determine what information and access your accountant needs, including software access and daily transaction details. Security is paramount, so inquire about the measures they take to protect your data, including physical security protocols at their workplace and handling of digital information.
What Accounting Software Will You Use?
Knowing the software your accountant uses helps ensure compatibility and efficiency. Cloud-based solutions like Xero offer seamless access for both parties and can be more cost-effective.
What Happens to the Files After You’re Finished With Them?
Understand the policies for data retention and destruction. Request a written agreement outlining what happens to your financial information after the completion of their services to ensure your data is handled securely.
How Will the Bookkeeper Communicate with Your Accountant?
Ensure open communication between your bookkeeper and accountant, especially if they are from different firms. Facilitating this relationship can prevent miscommunication and streamline financial processes.
What Are Your Policies in Case of a Data Breach?
Enquire about their emergency plans and policies for data breaches. A comprehensive disaster recovery plan can mitigate potential damages and offer peace of mind.
What Additional Services Do You Offer?
Services like financial planning, record-keeping, and business advising can add value. These additional offerings can save you time and money in the long run.
How Much Will It Cost?
Cost is a significant factor but focus on value over the lowest price. Discuss their payment terms and ensure the services provided align with your budget and expectations. Opt for transparent pricing models, such as fixed monthly rates, to facilitate budgeting.
Frequently Asked Questions
1. What qualifications should a tradie accountant have?
A tradie accountant should be a registered BAS agent with at least a Certificate IV in Financial Services. Membership in professional organisations like the Association of Accounting Technicians (AAT) or the Institute of Certified Bookkeepers (ICB) is beneficial.
2. Why is it important to hire a tradie accountant with experience in my industry?
Experience in your industry ensures the accountant understands the unique challenges and opportunities you face, providing tailored advice and better financial management.
3. How can I secure my financial data when working with a tradie accountant?
Ensure your accountant uses secure, reputable accounting software and ask about their data protection measures. A written agreement on data handling and retention policies can also enhance security.
4. Are additional services like financial planning important when choosing an accountant?
Yes, additional services like financial planning and record-keeping can save time and money and help with comprehensive financial management.
5. What should I expect to pay for a competent tradie accountant?
Costs vary, but it’s important to focus on the value and quality of service rather than the lowest price. Transparent pricing models, such as fixed monthly rates, can help in budgeting and managing expenses effectively.
If you are looking for a tradie accountant, contact Griffiths Advisory to learn about our services. Let us worry about keeping your finances in check as you strategise on ways to grow your business.
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Phil has been the Managing Director of Griffiths Advisory for 29 years, combining his expertise in taxation, business advisory, superannuation, negative gearing, and wealth creation. He also loves an active lifestyle, indulging in surfing, cycling, snowboarding, and spending quality time with his wife and two children.
