Communicating Confidently with Financial Professionals
To many entrepreneurs, discussing finances with an accountant feels akin to navigating a foreign country without a translator. You’re not alone if you’ve ever felt lost in a sea of accounting terminology, nodding along while feeling a gnawing sense of inadequacy. This intimidation, my fellow business navigators, must be dispelled!
Understanding your finances is crucial, and it's a journey we can embark on together.
Here's the truth—your accountant speaks a specialized language perfected over years of training and practice. You are not expected to converse fluently without ever having learned the language, yet you have every right to comprehend the essence of your business's financial narrative.
Let’s dismantle the barriers.
Accountants: it’s time to translate your expertise into accessible wisdom.
Business owners: let’s retire the fear of appearing “dumb.”
Ask for the breakdown, the rephrasing, and the layman’s terms. Demand clarity because it is the bedrock of understanding.
Consider starting the conversation with: “I’m not familiar with accounting; I need you to explain this in terms I can use.”
Or;
“This is unfamiliar territory for me; can you guide me through this concept?”
Dialogue like this invites collaboration and education.
A competent accountant should meet you halfway, fostering an environment where no question is too basic. Your accountant’s job isn't merely to report figures; it's to illuminate the financial path of your enterprise. If their patience wanes or if condescension creeps in, it's a signal to reassess the partnership.
In an age where information is a click away, research shows that businesses flourish when owners actively engage with their financials. There is a positive correlation between financial literacy and business success. Thus, fostering a transparent relationship with your accountant isn’t just preferable—it’s business-critical.
The reality of CRA audits further underlines the importance of this relationship. While we might associate audits with missteps, they can also be random or triggered by anomalies that are routine in the business world. The goal is to be prepared, and understanding your finances is the first line of defense.
Confronting the maze of financial details is a part of your role, and evading it is not an option. The CRA won’t accept ignorance as a defence, and neither should you. When faced with a complex transaction or a tax concept, grasp the reins by asking for an explanation in clear, straightforward language. Ultimately, the buck stops with you as the business owner when it comes to your finances. If the accountant (or bookkeeper) makes a mistake and you get in trouble with the CRA, YOU pay the penalties.
Your fiscal health isn't just a matter of number crunching; it's a story told through ledgers and tax returns. It reflects your business's vitality and guides your strategic decisions. When your accountant demystifies the financial statements, they empower you to narrate this story with authority and insight.
The conversation with your accountant should be an exchange of knowledge, a partnership where your operational acumen meets their financial expertise. Inquire boldly, "How does this figure influence my cash flow?" or "What do these expense trends tell us?" By doing so, you turn what could be a monologue into a rich dialogue.
It's about taking the complex – such as depreciation, accruals, or capital assets – and connecting it to the tangible aspects of your business. How do these affect your budget, funding opportunities, or investment strategies? Your accountant should be able to guide you through the significance of each, shaping your understanding into financial acumen.
Let’s change the script on financial discussions. Reach out for a ‘Financial Checkup,’ an opportunity to walk through your finances with an expert who speaks your language. Whether you’re bracing for a CRA audit or just looking to fortify your financial comprehension, a checkup is your strategic move toward financial fluency and peace of mind. This is a service designed to diagnose, strengthen, and fortify your business against fraud. Rest assured, I meet you where you’re at with financial understanding and breakdown anything you need into digestible pieces. ALWAYS.
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I LOVE banishing the “finance scaries” by teaching entrepreneurs in an easy-to-understand way. If you’re reading this, you might benefit from my FREE Financial Health Check, which will assess how you’re doing with the financial management of your business, and provide you with customized resources that will hopefully resonate with you.