Questions to ask your accountants before year end and how to build a long lasting relationship of trust with your financial advisors.

1. 9 Questions You
Should Ask Your
Advisor Before The
Year End

2. If you’re anything like me, each year as tax time rolls
around, you find yourself with several ‘quick questions’
for your accountants and tax advisors. Naturally, they
tend to range in complexity and, as a result, so too
does the amount of time it takes to quickly respond.
However, this is also when many of us rely the most on
our advisors, and how they respond is a chance to
reinforce trust and value within those relationships.

3. As advisors, understanding the questions they’re likely
to come across – before they’re asked – helps in
preparing personalised answers with the right
information. It also saves them inboxes (and mental
capacity) from becoming overloaded. Its important for
you to feel confidence in your advisors and build a long
lasting relationship with them. With the help of my
peers, I’ve compiled 9 questions that you should ask
your advisors in the coming months. While this list
offers advice, only you know what’s best for your
business – simply take from it what you need to do
what you do best.

4. 1. “How is this end of financial year (EOFY) different
from the last?”
In contrast to last year, do you have a clearer
understanding of COVID-19’s financial impact? Can
assess how the pandemic has affected a business
overall? When communicating this to advisors, ask
them to explain the business numbers after striping
back the ‘COVID-numbers’ – or taxable government
benefits, like JobKeeper – to establish how well you’re
doing without inflated support.

5. 2. “What will you be looking out for when reviewing my
business’ numbers?”
Ensure that they are looking for outliers. As well as
pandemic grants and funding, these could also include
the costs associated with business transformation.
From a tax perspective, communicate early on whether
these are deductible expenses.

6. 3. “How will JobKeeper impact me this EOFY?”
JobKeeper inflates wage expenses, meaning you’ll
need to narrow down how much a business’ employees
cost without any subsidies in the new financial year. As
JobKeeper is a taxable income – EOFY is a chance to get
on the front foot of this conversation.

7. 4. “I feel like my business isn’t doing well, can you help
me?”
A lot of us are entering the EOFY with a lot of emotion.
After all, it’s been a chaotic twelve months. However,
its important to ensure that your advisors bring facts,
numbers and truth to those feelings of doubt or
uncertainty, and to communicate them.

8. 5. “How can I pay less tax?”
To offer some perspective, first ask yourself the a
simple equation; will you spend $4 to save $1 of tax,
you’re still $3 out of pocket. Will that tax deduction
support your business’ performance? If the answer’s
“no”, Its wise to spend more to ‘save’ on tax. Ensure
your advisor is on the same page as well.

9. 6. “Help, I’m not sure if my business is set up
properly?”
EOFY is a great opportunity to re-evaluate your
business’ structure from both a tax and risk
perspective. It’s also a chance to educate yourself on
what category your business’ structure falls under, its
important to feel confident in how you’re set-up. If you
are not confident with your current structure ensure
you raise this with your advisors this EOFY.

10. 7. “How can I make my business more efficient in
FY22?”
This question always comes back to; how can I improve
my processes with technology? EOFY is the perfect time
to introduce new digital tools – especially if you’re
transitioning to a new accounting software – and learn
the skills you need to operate more
efficiently. Consider getting your advisors to set you a
‘homework’ for FY22. There are plenty of easy-to-
navigate courses available on Xero Central that range in
skill level and expertise.

11. 8. “What do I do with my cash on hand? And, can I take
my cash out of the bank?”
This is an important question especially if you plan to
borrow from a bank within the next year. You need to
ask your advisors on your maximum borrowing capacity
and minimum tax exposure, finding consistency
between the two.
When it comes to withdrawing cash, make sure your
advisor understand the tax implications involved.

12. 9. “How can I prepare my business for the financial year
ahead?”
This EOFY isn’t just about tying up FY21; it’s also a
chance to prepare for the year ahead. Before you go for
advice, be proactive by having a plan for your business
in the next twelve months. By tax time, this means that
they can have suggestions ready to help you get to
where you want to be.

13. Whether it’s answering a ‘quick question’, or unpacking
a complex business plan – how we communicate with
our advisors is all about building trust. Behind each and
every question is a small business owner who is striving
to grow, and if we your advisors can reciprocate that
with considered responses, you’re on our way to
building lasting relationships.
If you are looking for advise for your business ask our
team to connect you with someone in our advisory
team.
https://www.ikeep.com.au/