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An accountant is one of the most important people in your organization. Apart from maintaining your financial transactions, you need an accountant for many other purposes. This may include filing your tax returns, systematic recording of books of account, assisting in making financial decisions, and looking after the accounts payable and receivables to name a few. However, if these simple routine operations are not done properly, then you should consider hiring a new accountant or outsourcing your accounting work to one of the professional accounting firms Edmonton. This is because a bad accountant will certainly create multiple problems and affect the smooth functioning of your organization. The following are some signs of a bad accountant and that you need to consider hiring a new one.
1. Takes Time to File Returns
If your accountant is late in filing your annual tax returns, then it is not a good sign. Late filing of tax returns will only attract penalty rates. Although filing income tax returns is a complex procedure, a professional should be prepared with all the necessary work that needs to be done well before the tax due date. Therefore, if you find your accountant is unable to carry out his/her duties in a professional manner, you need to ask him/her to change his approach or consider hiring a new accountant.
2. Lacks Adequate Knowledge
Another important quality that an accountant must possess is the knowledge about various accounting terms, processes, and tax laws. When it comes to tax laws, he/she must be well-versed with the latest changes in the tax policies and the standards set by Canada Revenue Agency (CRA). Plus, a proper knowledge about the tax-free benefits and deductions is essential while filing tax returns. The accountant should know your business operations well so that, the correct tax rates are applied and exemptions are not missed. Inadequate knowledge in these matters indicates that you need to either train your accountant or hire an accountant who has the proper expertise and experience in these matters.
3. Provides Poor Accounting Solutions
When an accountant provides poor accounting solutions, the financial statements do not reflect the true picture of your organization. Frequent mistakes and errors in accounting statements mean that the accountant is careless in his work and lacks professionalism. Certain errors can lead to huge implications on your finances. Therefore, if you find that your accounts are not up to the mark, then hiring a new accountant is the best option.
4. Unable to Explain Financial Statements
Many small-scale business owners require assistance in understanding their financial statements. If your accountant isn’t trained to do so, he won’t be able to explain you the financial statements of your company. Your accountant should be able to explain different financial ratios and guide you on how to improve your financial position. If he is not able to provide any suggestions or unable to explain the financial statements, then you need to consider hiring a professional accountant.
5. Unavailable When Needed
Does it happen that your accountant is always busy when you call him? It is quite possible that he is busy, but if it happens every time especially, when you need him the most, then this is something unacceptable. You cannot expect to run behind your accountant for doing your work. You have hired him to ease your task and if your accountant doesn’t respond when you need him, it is recommended that you hire a new one.
These are just a few signs of a bad accountant. Hiding important information, manipulating your accounts, rude behavior, etc. are some traits of a bad accountant. If you ever notice any of these signs, it’s time to change your accountant and get a new accountant. In fact, you may even decide to outsource the entire accounting process to a professional accounting firm who will provide accurate and quality bookkeeping and tax services for your firm.