Gambit Financial

A strong strategy is the heart of your successful business.

Azard Marzook on LinkedIn: A strong strategy is the heart of your successful business A strong strategy is the heart of your successful business...

6. How much should you expect to pay an accountant and why?

As with any professional service provider, accountancy fees will generally come down to the level of expertise and the number and complexity of services.

Rule of thumb, you’re looking at:
◊ A minimum of 1.5% of revenue per month for basic reporting and compliance;
◊ 2-3% of revenue per month for compliance plus education and customized
reporting;
◊ 3%+ of revenue per month for a full service financial department, including
proactive reporting, strategy sessions, goal setting and accountability, and
education.

You should know exactly how much you’re paying each month, with absolutely no surprise bills.

How great accountants do it… 😎
They work on a fixed pricing model based on services provided, and not on hours worked. Their reasoning is simple: If you don’t know how much you’re paying from one month to the next, or if a
random phone call is going to make its way onto your next bill, how can there be any trust?

1. What reports should you be receiving?

Whether it’s weekly, monthly, or quarterly, you should be seeing reports of your business’s performance. Without access to those numbers and the insight they provide, you’re essentially driving blindfolded.

Here’s what you should be receiving:

* Income Statement (month and year-to-date) - This will help you identify how your business is performing over the months, pinpointing trends and opportunities.

* Balance Sheet (month over month with change column) - This report shows your financial position and helps you plan how to meet your financial obligations.

* Accounts Payable (weekly) - In other words, who do you owe money to? Do you have sufficient funds to make those payments?

* Accounts Receivable (weekly) - Likewise, who owes you money? Do you need to chase someone for payment?

* Cash Flow (monthly) - Where is your cash coming from? Where is it going? Are there any gaps coming up that you need to fill with external funding?

* Bank Balance (daily) - What is your current cash situation? Checking in on your bank balance helps you keep your finger on the pulse of your business.