Working with an accountant can bring much more value than simply filing annual returns or calculating taxes. Whether you’re just launching a new venture or trying to better manage your current business finances, your accountant can be an indispensable advisor. Knowing what to ask and when to seek their input is key to unlocking their full potential.
This guide outlines the most insightful questions business owners should regularly discuss with their accountants. These conversations can lead to smarter financial decisions, optimized operations, and more sustainable growth over time.
What’s the Best Business Structure for Me?
Choosing the appropriate legal structure for your business has lasting implications for taxes, liability, and even funding opportunities. Should you register as a sole proprietor, form a partnership, or set up a limited company? Each format has its pros and cons depending on the nature of your business, your future goals, and the level of personal risk you’re willing to take on.
Your accountant can guide you through the legal, operational, and tax-related consequences of each option. They can also handle the paperwork required for registering your business with the appropriate authorities.
What Are My Tax Responsibilities?
Taxation is often one of the biggest uncertainties for entrepreneurs, especially in their first few years. Understanding how much you’ll need to set aside, when to make payments, and which tax rules apply to your business is vital.
Your accountant will help clarify what taxes you’re liable for—corporation tax, self-assessment, or employment-related taxes—and when those obligations kick in. They’ll also help you budget appropriately to avoid scrambling for funds when tax deadlines approach.
Do I Need to Register for VAT?
If your revenue surpasses a certain annual threshold, you’re legally required to register for VAT. However, even if your income is below that line, voluntary registration may still be advantageous. For example, registering early may allow you to claim back VAT on business expenses.
Ask your accountant to assess your situation and advise whether it’s worthwhile to register now or wait until you’re legally obligated. They’ll also explain the record-keeping and reporting responsibilities that come with VAT registration.
How Can I Better Manage Cash Flow?
Healthy cash flow is the backbone of every business. Even profitable companies can collapse if they run out of available funds. Your accountant can help by creating a detailed forecast of incoming and outgoing cash, pinpointing shortfalls before they become critical.
They can also recommend improvements to invoicing practices, payment terms, and expense timing. By spotting patterns in your financial activity, your accountant can help you make adjustments that keep operations running smoothly month to month.
What Expenses Am I Allowed to Claim?
Knowing what costs are considered legitimate business expenses can help reduce your tax liability significantly. Many business owners miss deductions simply because they’re unaware they’re eligible.
Your accountant will help you categorize expenses like travel, mileage, home office use, subscriptions, staff meals, and professional services. They’ll also explain grey areas, such as partially personal expenses, and suggest the best ways to document and justify those costs to tax authorities.
Are There New Laws or Changes I Should Be Aware Of?
Tax rules, reporting standards, and business regulations are constantly evolving. New laws can impact how you operate, what you can deduct, and what records you must maintain. Staying informed is difficult when you’re focused on daily business demands.
A reliable accountant will keep you up to date with upcoming changes in legislation that apply to your industry or business type. This might include payroll requirements, digital tax filings, or eligibility for grants and subsidies. Keeping ahead of these changes helps you stay compliant and avoid penalties.
How Should I Prepare for Tax Year-End?
Year-end tax filings require accurate, organized records. While your accountant can handle the technical work, you’ll need to supply supporting documents and summaries. But what’s the best way to present these materials?
Ask your accountant what documents to prepare and in what format. Whether it’s bank statements, receipts, or mileage logs, providing clean, timely records will help them complete filings efficiently and accurately. They’ll also inform you of any pre-year-end adjustments you should make to reduce your tax burden.
What Financial Records Should I Keep?
Proper record-keeping isn’t just good practice—it’s often a legal obligation. Your accountant can help you create a system to store and access essential documents like invoices, receipts, payroll data, loan agreements, and insurance policies.
They can also tell you how long to retain each type of record, which can vary depending on tax laws and whether you operate as a company or sole trader. Cloud-based accounting platforms are a convenient way to organize records, and if your accountant uses the same software, collaboration becomes seamless.
How Can You Support My Business Growth?
Accountants do more than balance your books—they can help you chart the path to expansion. With access to detailed financial data, your accountant can identify underperforming areas, help allocate budgets for growth projects, and assist in planning for large investments.
They’ll also be instrumental if you’re seeking funding. Whether applying for a business loan, looking for investors, or participating in a grant program, your accountant can prepare the financial documentation needed to present your business as a viable investment.
What Issues Should I Keep You Updated On?
A good accountant isn’t someone you call once a year—they should be a consistent presence in your business journey. It’s helpful to ask what kinds of decisions or changes warrant their input.
For instance, your accountant can guide you on whether to lease or buy equipment, employ staff versus contractors, or expand into a new market. These choices affect tax, liability, and cash flow, and your accountant can offer insights based on real-time financial analysis.
How to Build an Effective Working Relationship
The more frequently and openly you communicate with your accountant, the better the results. Routine check-ins—whether monthly, quarterly, or at key milestones—can help you avoid costly mistakes and capitalize on opportunities.
It’s also important to align expectations. Ask your accountant what they need from you to serve you better. Do they prefer digital reports or paper files? Do they offer strategic advice or focus solely on compliance? Clarifying this will make working together more efficient and productive.
What to Look for in a Small Business Accountant
If you’re still in the process of choosing an accountant, it’s critical to find one with experience supporting businesses like yours. Someone who understands the particular challenges in your field will offer more relevant advice.
Look for signs of proactive engagement—do they send out legislative updates? Are they familiar with grants, incentives, or funding programs? Do they provide forecasting or performance benchmarking? These are the types of services that go beyond bookkeeping and provide real business value.
Digital Tools That Can Streamline the Process
Modern accounting often involves more than Excel spreadsheets. Cloud software allows for real-time collaboration, where both you and your accountant have access to the same set of numbers. It also helps automate tasks like invoicing, payroll, and expense tracking.
Ask your accountant if they recommend a specific platform. Using compatible software makes it easier to communicate, reduces the likelihood of errors, and speeds up data sharing when deadlines are tight.
Turning Questions Into Strategy
Each of these questions opens the door to a broader conversation about how to run your business more strategically. From tax efficiency to growth planning, your accountant can offer input that has a real impact on your bottom line. But they can’t help if they’re left out of the loop.
Instead of viewing your accountant as a back-office necessity, treat them as a business partner. The more insight they have into your goals and challenges, the more guidance they can offer—whether it’s identifying inefficiencies, proposing new pricing models, or preparing for unexpected expenses.
Why Regular Consultation Matters
The business landscape is dynamic, with shifting regulations, economic pressures, and evolving technologies. Relying on annual check-ins might leave you vulnerable to surprises or missed opportunities.
Scheduling regular consultations ensures that you’re not just reacting to problems, but anticipating them. These sessions allow you to course-correct early and plan confidently for the future. Whether it’s preparing for a new hire, entering a new market, or just tightening up expenses, your accountant can provide a second set of eyes.
Conclusion: Build Smarter With Better Questions
Great businesses are built on good decisions, and good decisions require good data and sound advice. Your accountant is one of the best resources available to you—if you know how to work with them effectively. By asking thoughtful, targeted questions, you tap into their expertise and open the door to informed strategies, smoother operations, and faster growth.
Start with the ten questions in this guide, and keep the conversation going. The more your accountant understands your business, the better they can help you succeed.