Accountant – Friend or Foe?
Author: Yohan Soza April 2015
Like many professionals it’s a common misconception that an accountant is just a historic record keeper and rarely adds value to a business or its wealth creation. The undersigned has briefly explained why a good accountant is stereotyped this way and why one should think otherwise
Yes accountants are unpopular! And like it or not they have to be. Most would come to the conclusion that an accountant is rude or unpleasant to work with, unfriendly and always in control of some sort of budget or the ‘purse strings’. This is your typical office accountant who rarely jumps on a spending spree bandwagon or dampens the next big marketing campaign or buying of a new fleet of office motor cars for executives. Did you know this accountant could single handedly save the company from bankruptcy?
Like any other professional be it a lawyer, doctor, architects or an engineer and accountant goes through a rigorous study cum training to be that unpleasant character he is. Yes, he spews out jargons like ROI, Gearing, liquidity etc . and you are only requesting new paper to the copier.
It’s not always the case. Get used to it. Gone are the historic bean counter who sits at some dusty desk in a record room at the back and updates historic data and throws out last month’s financial performance ten working days into the next month. The new age accountant is definitely much more.
The modern accountant is in the forefront and works hand in glove with senior management in running of businesses in today’s world. Some are right there at the top, instrumental in a company’s strategic direction and growth. In fact most CEO’s and business owners would rarely make a big finance transaction or decision without consulting his/her accountant. Why you may ask? An accountant is privy to the company’s cash flows, bank facilities, budgetary restraints, efficiency & capacity levels and performance indicators amongst others . Like everyone be it a small business owner or board of directors of a big corporate entity; ‘growth’ is what all strive for . An accountant can tell you if the timing is right, whether the company’s financials are healthy, tax implications and if the envisaged growth is sustainable and can synergize existing operations; and this is just touching the surface, the list goes on.
It’s the ‘slap on the wrist’ which is good for the organization in the long run. This is what is expected of an accountant, and yes the more this happens popularity fades.
So is your accountant your friend? He may look a foe if he tells you to shut down a loss making operation your grandfather started years ago or advice against that merger you and your business partners were planning for months. Ofcourse properly substantiated with numbers and financial implications etc.
In a nutshell an accountant will be the devil’s advocate or shake you up to reality more than a close friend, business partner or spouse. Isn’t that what you actually need than ‘friends’ who blindly say good to each and every business decision you make in the pretext of being supportive?
If the going is good, the accountant will be the first to encourage diversification or speed up that new business proposal. In such a situation the accountant is a friend anyway making it easier to work out how to work with your accountant, it’s during tough times we need to change our thinking, and listen carefully to what your accountant has to say. He/she may sound a foe but deep down a true friend in the long run.
So why not contact our friendly Ormond office if you need any kind of finance related services. Be it tax returns, book keeping, budgeting or planning, setting of a company or ABN or even clearing that old ATO issue. We are a team of experienced accounting professionals but with that unmistakable friendly touch which should put you at ease.
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