Why do accountants exist? (2 of 3)

Last post I shared with you the 1st reason why accountants exist – to make money for their clients. We now move onto the 2nd reason why accountants exist.

Accountants exist to also SAVE MONEY for their business clients. Now this just isn’t my opinion, but the CFOs & CEOs I’ve interviewed for the book
“What do Accounting Clients Really Want?” also share this view … although they are much more colourful in the way they express their desire for their external accountants to save them money.

As mentioned in Monday’s post (https://whatdoclientsreallywant.com/why-do-accountants-exist-1-of-3/) , accountants tend to have an intimate knowledge of how their client’s businesses work.

Here is one example one of the CFOs I met with gave me about how their accountant saved their business money.

The accountant in question was undertaking a review of the client’s business and discovered that there were some tax concessions which could be obtained through a closer look at their research & development activities. To cut a long story short, the accountant (off his own bat) undertook a project around the R & D treatment, which wasn’t his area of expertise, investigated how the business was placed, liaised with the ATO and produced all the necessary documentation which was not a straightforward task. After a few months of concerted effort the end result was a tax saving of several hundred thousand dollars and a very happy CFO. In fact the CFO was so happy, they paid the accountant a big fat success fee.

Not a bad way to save money.

Now, of course, you may be thinking to yourself, well that’s great if you have a big client and can find big savings. The above client had a revenue of around $100m – so it was fairly big. However, there are dozens of ways to help your client save money. Here are just a few:

  • Don’t use recruitment agents to find staff
  • Convert offline advertising to online activity
  • Ask suppliers for a better deal (believe me … you’d be surprised at some of the responses)
  • Tender out non-essential business processes
  • Survey your client’s staff and run a context to help identify cost savings

See you next post for the 3rd and final reason why accountants exist.

All my best,

James