This time of the year is an excellent opportunity for accountants to check in with their clients or connect with new ones. It’s a little slower for many businesses, and owners either have more time or are more open to maximising the end of the year.
So, instead of only discussing taxes, it’s an excellent time to discuss your client’s overall business plans. This helps uncover activities that could affect their finances and positions you as a comprehensive business advisor who can assist with more than just taxes.
Here are five important business topics to talk about:
1. Company Growth
If your clients are planning significant changes to their business, it could impact their valuation and tax obligations. Ensure they are aware of potential issues or changes that could affect them. Key areas to explore include:
- Expanding to new locations
- Hiring or changing staff
- Merging with or acquiring other businesses
- Preparing to sell the business
2. Financial Planning
Budgeting is often a top priority for businesses at the start of the year, but other financial matters are equally important. Now is a good time to review their finances and discuss their future. Talk about:
- Strategies to improve cash flow
- Retirement planning and wealth management
- Significant investments, gifting, or charitable giving
- Capital investments or loans
3. Risk Management
Many small businesses in New Zealand don’t have a plan to protect themselves from disruptions. Emphasise the importance of being prepared and reducing risks. Discuss:
- Updating insurance policies
- Meeting compliance, security, and privacy standards
- Protecting against fraud
- Internal controls to safeguard the business
4. Inventory Management
For businesses selling goods online, staying on top of sales tax rules is crucial. Many regions now have regulations related to where businesses store inventory or fulfil orders. Advise your clients to:
- Optimise restocking and ordering processes for cash flow
- Properly account for unsold inventory on the balance sheet
- Collect sales tax in all applicable areas
5. Tax Compliance
Yes, of course, we need to mention taxes. There have been a raft of updates this year, and not everyone will be across them. Ensure your clients feel confident about their compliance processes. Discuss new tax laws and how to adapt. Advise them to:
- Collecting and filing employment income information for all staff – using Xero or even MyHR makes this simple.
- Update tax practices to comply with online sales rules
- Conduct internal reviews to spot potential audit triggers – use this to sell in Audit Insurance.
- Remind your clients to separate business and personal finances and ensure all records are complete and organised – taking photos of invoices or dockets and emailing them to their accounts person or Xero is an excellent habit to get into.
Lastly, you could recommend automating manual processes to save time and money and reduce risk. Starting these conversations early can help both you and your clients achieve better financial outcomes.
