Aron Govil shares Important Questions to Ask Your Business Accountant

Business owners have a lot of important questions to ask their accountants explains Aron Govil.

Here are 15 key topics you should discuss with your business accountant on a regular basis.

1. How can I save money on taxes?

There are a number of ways that you can save money on taxes, depending on the type of business you have and your specific circumstances. Speak with your accountant to discuss the best options for your business.

2. What tax deductions can I claim?

Deductions vary depending on the type of business you have and your specific circumstances. However, some common deductions include expenses for office supplies, travel, and entertainment.

3. What are the tax implications of my business decisions?

Before making any major business decisions, it’s important to discuss the tax implications with your accountant. This will help you make the best decision for your business while minimizing your tax liability.

4. Do I need to set up a separate bank account for my business?

It is often advisable to set up a separate bank account for your business, especially if you have employees or contractors. This can help you better track business expenses and income.

5. Should I be using accounting software?

If you’re not already using accounting software, it may be time to start. This can help you automate your bookkeeping and save time. Speak with your accountant to find out which software would be best for your business explains Aron Govil.

6. How often should I be reviewing my financial statements?

You should review your financial statements at least monthly, if not more frequently. This will help you track your progress and make necessary changes in your business operations.

7. Do I need to create a budget?

A budget can be a helpful tool in managing your business finances. Speak with your accountant about whether or not creating a budget would be beneficial for your business.

8. What are some red flags that indicate financial problems?

There are several red flags that may indicate financial problems in your business, such as late payments, declining sales, or increasing expenses. If you see any of these red flags, be sure to discuss them with your accountant.

9. Should I be using invoicing software?

If you’re not already using invoicing software, it may be time to start. This can help you save time and ensure that all of your invoices are accurate. Speak with your accountant to find out which software would be best for your business.

10. How often should I be sending invoices?

You should send invoices as soon as possible after completing a project or providing a service. This will help you get paid quickly and avoid any delays in payment.

11. What is the average collection period for businesses like mine?

The average collection period is the number of days it takes for a business to receive payment after sending an invoice. This varies depending on the type of business, but you should discuss what is typical for your industry with your accountant says Aron Govil.

12. What are some tips for reducing expenses?

There are a number of ways to reduce expenses in your business. Speak with your accountant about what might be feasible for your business, such as negotiating with vendors or downsizing your office space.

13. Should I be using a cash or accrual basis of accounting?

The cash basis and accrual basis are two methods of accounting that businesses can use. The method you choose will depend on the size and complexity of your business. Speak with your accountant to determine which method would be best for your business.

14. What is double-entry bookkeeping?

Double-entry bookkeeping is a method of accounting that records both debits and credits for each transaction. This helps to ensure accuracy in your financial statements.

15. What is a trial balance? 

A trial balance is a list of all the accounts in your general ledger, along with their balances. This can be used to check the accuracy of your financial statements.

Conclusion:

As you can see, there are a number of important questions to ask your accountant when it comes to business finances. By asking these questions, you can better understand the financial side of your business and make more informed decisions about your operations.

These are just a few questions that you may have about business taxes. Be sure to discuss any concerns that you have with your accountant to ensure that you are making the best decisions for your business.