Rule number one.  Keep in touch with your accountant, accountants, bookkeepers or tax preparer all throughout the year.  You can lose thousands and thousands of dollars over the course of your business.  My Father taught me a great lesson when I was younger.  He said it's not so much about your product or service, but it's about how you run your business.  I look back now, and after what I have seen in our business, he was correct.

The problem is two fold.  First small business owners don't want to be bothered with taxes and accounting.  Rightfully so, they want to focus on what they like to do the best, grow the business, deal with customers, marketing their business etc., the creative stuff.  So let's say the accounting part isn't first on their priority list, nor are they aware of the benefits.  With that said, they are not in a position to ask the right questions when hiring an accountant.

The second part is the accountants themselves.  Anyone can practice; anyone can be a tax preparer.  You don't need to be certified or licensed, no understanding of the tax code, legal matters in the accounting practice, how the IRS works or auditing.  Places like H & R Block and Jackson Hewitt train their people for three weeks, and then your financial future is in their hands.  Not to blame those organizations, but people and business owners have a choice.

Furthermore, most small business owners contact their accountant only during tax time.  Remember this, tax time is a very busy time of the year for most accountants, and they don't spend the proper time necessary to figure out a years' worth of work.  This is why it is important to stay in touch with your accountant frequently througout out the year.  By doing this, you're already done before tax time; you know your results because of good planning.  And here's a secret, it doesn't take that much time during the year.

For example, we were just hired by a company that wasn't pleased with their accounting firm.  We analyzed prior year tax returns, and found a few problems.  We asked if their prior accountant was ever on the premises to do inventory counts or list assets that they could depreciate in their business.  They answered no, not in the past five years since we hired them. We all shook our heads.  That day we counted all of their depreciable assets, and within a few hours put more than $10,000 in their pocket.

This really got my engine running.  I wish more accountants cared about the product that they deliver to their clients, but there is good and bad out there, which leaves the entire burden on the small business owner.  We encourage our clients not to be experts in accounting, but to have a basic knowledge of the numbers.  This is very helpful for running their business, and selecting a partner (accountant) who will cover every base of their organization when it comes to money, taxes, purchasing and analyzing the numbers so you can focus on parts of the business where you can make the most money.

 I'll give you another example of why you should be in touch with your accountant frequently.  We watch over our clients numbers on a monthly basis.  Now September October comes around and we have them put together purchase list of things that they need (not want) for their business in the near future.  So now it's December, we have the list, and we have a great idea of where they will finish for the year.  Based on our findings and where they are on a financial basis for the year.  We will advise our clients to purchase the products now (December, prior to the year-end) or January 1st of the following tax year.  This saves our clients thousands each year, and lots of thousands over a ten year period.  These are the little things that make a huge difference, and there is a long list of others.

So small business owners please educate yourself, you don't need an accounting degree or have to take classes.  Read on the internet, there is plenty of information out there.  This will help you hire the right partner in an accountant, and help you understand your business the way it should be treated.  And remember, stay in touch with your accountant throughout the year, it will be the best investment for your small business and for yourself.

Bob Fornaro is the Company Leader at rgfa, and can be reached at bobf@rgfa.us or visit our website at www.ataccountant.com, or follow us on twitter at @rgfa_us