Most agribusiness owners would use an accountant at least once a year.
It's a pretty good business model in some ways, as the Australian Tax Office requires lodgement of tax returns annually.
There is a lot of study required to become a qualified accountant, and the degree is just the beginning. I also have an accounting degree, but I only know the basics about tax and accounting.
Country people are very loyal. This is evident in how often they change accountants. For most people, it's hardly ever.
By my estimation, accountants are the so-called trusted adviser. There are quite a few accountants that hold themselves out to be this, and it is probably a label that is justified.
As agribusinesses get larger and more professional, I think they should use their accountants more.
Being proactive is another label that accountants sometimes put out there. That is a bit more problematical. Some accountants most certainly are proactive. Others are too busy with compliance work to offer other services. Others are very conservative and quiet by nature, and are happy to offer advice if asked, but rarely offer it first.
This is a shame, as most accountants have hundreds if not thousands of clients in all sorts of industries.
They get to analyse and pull apart the numbers every year - a very privileged position to be in.
This information is a gold mine that can be shared without breaking confidences.
The old saying goes "watch the pennies and the dollars will look after themselves".
While I am not exactly sure of the value of a penny, I do understand the sentiment.
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The second part of the quote should be something like, "what you do with those dollars is really important". Make sure you use that capital wisely to get a decent return. Accountants have all the figures available to make these calculations.
As agribusinesses get larger and more professional, I think they should use their accountants more. Some agribusinesses are in constant contact with their accountant but for the majority, it's a once a year excursion into the accountant's office.
In agribusiness, given the numbers are large, particularly the quantum of assets, a phone call to the accountant would be wise before any large transaction is entered into.
There may be large tax implications of some decisions, and once the contract is signed it can be too late.
Some accountants offer fixed fee pricing within certain limits. This can work for both sides, and normally encourages more communication during the year.
Having a list of services an agribusiness requires from their accountant is, in my view, a good thing. If your accountant isn't able to provide the assistance you need, you may be best served to go and find a new one.
- Details: bagshawagriconsulting.com.au
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