Why "Proactive vs. Reactive" is the Most Important Distinction in Accounting
Just how important is the right accountant to the success of a small business?
Consider this: In a recent survey of nearly 400 small business owners, accountants were judged to be more important to the success of their firms than any other professional service provider. Accountants ranked higher than attorneys, bankers, insurance agents and technology and staffing consultants.
There's no denying that accountants play a critical role in the growth of an enterprise. Yet it's also fair to say that not every accountant is equal in terms of providing maximum value for clients.
One example: That same survey also showed that roughly four-in -ten small business owners believe their accountants have room for improvement. The most specific complaint? That accountants are too often reactive, rather than proactive, when serving their needs.
If you're an Australian small business owner, that's a key distinction of which to be aware -- and something that also plays an important role in whether you can effectively scale your enterprise.
Why Proactive Accounting Matters
There are many yardsticks by which you can measure the efficacy of those handling your bookkeeping or accounting. Yet few are as revealing is simply asking whether they are proactive or reactive in how they deliver service.
A reactive accountant waits for clients (or events) to instigate activity. One example: If a clients’ cash flow issue arises, a reactive accountant might be able to coordinate an effective response that neatly solves the problem.
A proactive accountant, however, wouldn't allow the issue to arise in the first place. By taking the initiative, the conditions that led to the cash flow issue could have been nipped in the bud and resolved before any problem developed.
When accountants assume a reactive posture, they help create an environment where it’s incumbent upon business owners to raise and help address concerns -- something that inhibits growth. Instead of devoting resources to strategic thinking and planning, business owners get bogged down in the details of problems that could have been pre-emptively resolved by an accountant with a more proactive approach.
Proactive accountants address looming issues before they become full-fledged problems. They make it a point to stay apprised of all of the most recent developments -- both in their industry and the industries of their clients. They are also deeply attuned to any changes or variations in their clients' financial outlook. They stay on top of tax payments, and work to ensure that any and all financial blind spots are covered.
By doing so, they can play an integral role in keeping things running smoothly, and ultimately scaling your business.
Why Nine Advisory Goes Beyond Traditional Accounting
At Nine Advisory, we understand the critical importance of being proactive. Yet we also go far beyond this distinction when delivering service for our clients. Nine Advisory is a full-service business financial advisor that offers a strategic framework designed to help small businesses professionalise.
As a comprehensive business advisor, our services extend much further than those offered your typical Australian accountant. We help our partner companies develop a systematic approach to business, one that puts the self-sustaining processes in place that are essential for significant growth.
Businesses following our Nine Pillar framework receive the following benefits:
A structured on-boarding process delivered over a three-month period
A half-day strategic planning workshop
A half-day forecasting and budgeting workshop
A processes, people & systems workshop
Weekly and monthly reporting
Monthly advisory board meetings
Set pricing -- which means no bill shock for services provided (all inclusive monthly pricing)
If you're looking to a top Sydney accountant -- or the best business advisory Australia has to offer -- we urge you to contact Nine Advisory today. Book in for a free chat and let us solve one of your big business challenges (we love a challenge)!