FIND A PROACTIVE ACCOUNTANT!
RECOMMEND A PROACTIVE ACCOUNTANT!
FIND A PROACTIVE ACCOUNTANT NEAR YOU
Need to find an awesome accountant? One that is proactive, and will act in the best interests of your business and your life? Then use our Find an Accountant tool to find an accountant in your area. Just submit your query on the right and well hand pick an accountant that meets your needs.
Alternatively, use “OUR ACCOUNTANTS” search to find the perfect proactive accountant near you!
WHAT IS A PROACTIVE ACCOUNTANT?
In business we need additional help and only proactive rather than reactive accountants will offer this help. After surveying thousands of clients from all types of industries we narrowed down 8 key areas (over and above compliance services) where business clients want help. A proactive accountant offers you help in these areas:
1. Helping you grow your business
2. Increasing your profitability
3. Improving your cash flow
4. Ensuring your assets are properly protected
5. Doing everything legally possible to minimise your tax
6. Advising on succession planning or sale
7. Helping you financially retire
8. Working with you to help you determine the legacy you would like to leave and then working towards that goal
Proactive accountants make things happen with you.
They work closely with you to help you create the value you’re looking for. They communicate more frequently, visit you at no charge, call you and ‘check in’, are interested in your welfare, listen to you, ask questions to determine what you need and really help you step-by-step to achieve your financial goals. They will offer additional ideas and services which add value to your business and understand they should be paid for the value they add – not every minute of time spent with you.
Proactive accountants are not just number crunchers, tax filers or compliance checkers; they are forward thinking and business savvy trusted advisers.
PROACTIVE VS. REACTIVE
Having the right accountant will seriously improve your financial position. If you’re a business owner this is one great reason why it’s important to have a proactive, rather than reactive, accountant.
If you don’t completely understand the difference, please read this white paper on “why your accountant could be costing you a fortune.”
Once you know which type of accountant you have, there are 1 of 3 things you can do:
2. Speak to and educate your current Accountant about how you would like them to work with you
3. Find an alternative Accountant who is better suited to your needs
It’s your business and your future. The selection of the right accountant will make the world of difference.
If your current accountant is being reactive with you why not refer them to the Network below? Or if you are happy with your current accountant, you can nominate them for recognition in the Network too!
HOW TO CHOOSE THE RIGHT ACCOUNTANT FOR YOU
A WORD OF WARNING!
When you read this paper you will do one of 3 things about the relationship you have with your Accountant:
2. Educate your current Accountant on how you would like them to work with you
3. Select an alternative Accountant who is better suited to your needs
My name is Rob Nixon. I am a husband, father and
businessman. In 1985 I left school at the age of 16 and since
1994 my business has been advising accounting firms around
the world on how they can run a better business. I am not an
Accountant, yet I know thousands of them and I use them as
advisors to my businesses.
In the past (at the time of writing) 17 years I have met
approximately 5,000 partners of Accounting firms and tens of
thousands of their employees. I have also had the opportunity
to interact with thousands of their business clients through small
meetings and seminars. My business is all about helping
Accountants and over the years I have gotten to know them
As a business owner, I have come to the conclusion that there
are 2 types of Accountants that you can choose from.
Those that wonder what happened with you. These types are history writers who are
reactive in nature and they only do what they have to do with you – as set by the government.
They do the tax / compliance / audit work on an annual basis and they advise you on additional
matters only when you initiate the request for more assistance. Reactive accountants typically
charge for every communication they have with you and they believe that ‘time is money’ and
charge you as such.
Those that make things happen with you. These types are history makers who are very
proactive and they work closely with you to help you become more successful. This group are
communicating more frequently with you and they proactively offer additional ideas and services
which add value to your business. Often they do not charge for additional communication and they
understand that they should be paid for the value they add – not every minute of time spent.
Sadly, the vast majority of the Accounting profession are in type 1. Even if this group have an inclination to
be proactive they often are not. They talk about doing things and helping their clients but they do not
One of the most endemic ‘business practices’ with Type 1 (Reactive) Accountants is the way they charge for
their expertise and service. They charge you on a ‘time basis’ (after the work is complete) and based on who
worked on your job and how much time they took will determine the amount they charge you. It’s a really
bizarre way of working out a price. The assumption (to get to the price) is that the time taken was correct
and the price per hour was correct – and nothing could be further from the truth
With this ‘time billing’ practice (where the price is set at the end of the work) the firm is directly rewarded
for making mistakes and going slower. You pay more the more inefficient they are! I do not think that
is fair on you. I would imagine that you, (like I do), offer an agreed price for your product or service before
the customer agrees to buy. Not for Type 1 (Reactive) Accountants – they charge you whatever they want
and you have to pay it. And that behaviour is bordering on unethical.
Think of how bizarre this pricing method is. The way Type 1 (Reactive) Accountants work is they segment
their advice into (typically) 6 minute time segments which they call a unit – and then they charge you ‘by the
unit’. The unit price is worked out as an hourly rate divided by 10. The hourly rate is worked out by dividing
the number of working hours into the annual salary of the employee multiplied by a factor. So if an
employee of the Accounting firm earns $70,000 and they work 1700 hours for the year then they have an
hourly cost of $41. If a factor of 4 is applied to the person then their hourly rate might be $165. This pricing
method has nothing to do with the value of the work they are providing to you.
The Type 2 (Proactive) Accountants will work with you and give you a fixed and agreed price before the
work commences. You will have a chance to understand the value they are adding and the scope and price
of the work before it commences. That’s a fairer and more ethical way to do business.
Accountants have a lot to offer. They are (in the main) very smart people and many are experts in finance,
profit improvement, asset protection, cashflow enhancement and tax minimisation. Many of them are very
proactive as well – if that is what you want.
When you have the right Accountant they can seriously improve your financial position. In my case I switched (4 years ago) from a Type 1 (Reactive) Accountant to a Type 2 (Proactive) Accountant and my net wealth has increased dramatically – and my new Accountant played a big part in that increase. I am not an isolated case. Many of the Type 2 firms I get to deal with cite case studies of how they have helped their clients become wealthier.
SO HOW CAN YOU TELL THE DIFFERENCE BETWEEN A TYPE 1 TYPE 2 ACCOUNTANT?
I had the pleasure of interviewing 1,077 business people on behalf of 129 Accounting firms. The meetings were all about what the clients (you) wanted from their Accountant. The clients overwhelmingly said they wanted their Accountant to be more proactive with them. They said they did not know what additional services their Accountant delivered and they wanted higher (and more frequent) levels of communication.
Maybe you are the same?
The table on the next page shows two lists. The first being the key frustrations business owners face when dealing with Type 1 (Reactive) Accountants and the second showing the solutions delivered by Type 2 (Proactive) Accountants.
SEE HOW YOUR CURRENT ACCOUNTANT STACKS UP WITH THESE LISTS.
NOW YOU HAVE BEEN THROUGH THE LIST YOU NOW HAVE SOME QUESTIONS TO ASK YOURSELF:
1. How does your current Accountant measure up?
2. What is missing from your current Accounting relationship?
3. What sort of relationship do you want?
If you like your current Accountant (and you see potential in them) then speak to them about improving their service levels and service offering to you. Give them the benefit of the doubt to start with – many Accountants have problems keeping up with what the government requires them to do with you. If you would like your current Accountant to improve, refer them to the Proactive Accountants Network and we will show them how (with coaching, training and new tools) to help you more proactively.
If you would prefer to sever your relationship with your current Accountant then make an enquiry to one of our accredited ‘proactive’ Accountants. Each firm listed has passed stringent tests to prove they are proactive.
It’s your business and your future. The selection of the right Accountant will make the world of difference to your financial future.