Signs You Need a New Accountant

bad-accountant

How do you tell that your accountant is under-performing? Do you trust your accountant to a fault? Bad accountants can go on for years without exposure. An effective accountant is very critical to the success of business. For many years, business owners have assumed that as long as their business is not getting audited, the accountant must be doing his or her job. In truth, many tax problems experienced by various businesses can be attributed to poor accounting.

Your accountant has probably been with your since you started your business and for that matter, it might be difficult to decide when it’s time to move on and find better services. Here are a few signs that will let you know it’s time to hire a new accountant.

 

Do they understand your industry?

An accountant who doesn’t understand your industry can cost your business a lot of money in the form of excess taxes, legal fees or even payrolls. There are accountants who have the training and experience to meet the needs of your industry. An accountant who understands your industry will deliver quality technical and commercial advice. If your accountant doesn’t understand your industry or fails to deliver comprehensive experience, it’s a sign that you need a new accountant.

 

Do they provide you with a regular review of your financial and tax affairs?

As a business owner you probably have a hard time keeping up with your financial affairs while at the same time trying to realize your business goals. For this purpose, you hire an accountant to help you with some of the heavy lifting. A good accountant should keep you informed and up to date with your financial and tax affairs.

They can set up a face to face meeting with you, send you an email, a newsletter or even call you. If your accountant makes no effort to keep you informed, it just might be the sign you need to hire new accounting services.

 

Do they provide value for your money?

While the money you pay for accounting services is important, what matter is the value of services you get. You might be paying expensively for the accounting services your business needs and yet there might be under-performance issues in your accounting department. While accountants’ fees vary greatly, you should receive value for the services you pay for. Accountants should provide you with a quote for all the services they will offer your business. They should be transparent about their pricing and also inform you of any additional services your business might need. An accountant who fails to do so probably doesn’t provide value for your money either.

 

Are they subject to lawsuits or complaints?

It is important to have periodical checks with your state board of accountancy for any form of complaints that they may have against your accountant. If your accountant faces non-compliance issues or any disciplinary action on file, consider hiring a new accountant.

 

Do they provide you with good services?

Good services include meeting deadline schedules and delivering accurate work. A good accountant should have a highly disciplined process that meets the needs of a client. You are counting on your accountant to pay your taxes on time, pay your employees and other time pays for any goods or services your business needs. Lack of a highly disciplined process is a sign that deadlines will be missed which could result in fines.

 

How about hiring a new accountant?

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Fraud in $4 Trillion Trade Finance Has Banks Turning Digital

trade-fraudStandard Chartered Plc, which lost almost $200 million from a deceit at China’s Qingdao port two years ago, has teamed up with DBS Group Holdings Ltd. to develop an electronic ledger of invoices that uses a parallel platform to the block chain employed in bitcoin transactions. The risk impersonated by fraud in the $4 trillion trade-financing industry has provoked banks to start discovering distributed-ledger technology like the one that underpins bitcoin. Lenders such as Bank of America Corp. and HSBC Holdings Plc say they are looking at block chain for trade finance and other banking applications.

Block chain followers debate that the technology will change the face of banking, helping lenders cut billions of dollars in costs. Trade financing, a centuries-old banking mainstay, may become ground zero for block chain adoption because it promises to do away with paper invoices and the fraud that accompanies them if banks can come together around a joint platform.

The banks conducted a trial late last year — code-named Trade Safe — that used a shared ledger of as many as 60 mock invoices, according to Gautam Jain, Standard Chartered’s global head of digitization and client access for transaction banking. Details from an invoice are used to generate a unique hash value stored on the ledger, which appears if another bank tries to register the same details separately, according to Jain.

HSBC and Bank of America said in separate e-mails they’re involved in a number of block chain projects including applications for trade finance. Citigroup Inc., meanwhile, said it’s in the “early stages of exploration” to assess how the technology can help in treasury and trade. None of the banks provided any specifics.

Despite the incentives, block chain will only be able to solve the fraud problem if banks agree to club together to use the central registry, according to Liew Nam Soon, Ernst & Young’s Asean managing partner for financial services.

“There has always been a culture of competitiveness and challenges in banks working together on large-scale projects or involving more than a handful of banks,” Liew said. “There is evidence, however, that this is changing with the current digital disruption in the industry, compelling many banks to collaborate.”

The issue for any partnership on a distributed bill is removing participants to determine on common standards in adopting a same invoicing platform. For example, a series of information fields from a check that will be used to beget a crush value for a block chain will need to be negotiated with a opposite banks, Standard Chartered’s Jain said. Banks will also need common messaging standards, according to Accuity’s Balani.

“The hurdles are associated to similar a common routine and ensuring that a singular handling complement can be adopted for all,” pronounced Owen Jelf, the London-based tellurian handling executive of Accenture’s collateral markets practice. “Think of it like putting 7 people who pronounce 7 opposite languages in one room to try to settle a problem, in this box how to settle a trade financial transfer.”

It helps that one of a biggest advocates for digital ledgers in banking is an obvious former banker. Blythe Masters, who once ran JPMorgan Chase Co.’s line business and assisted invent credit-default swaps, is now an arch executive officer of Digital Asset Holdings LLC that is seeking to popularize a use of block chain in a financial industry.

Standard Chartered and DBS are working with an Infocomm Development Authority of Singapore, a supervision group that pursues to allege record and telecommunications in a city, to nurture a distributed bill used in a TradeSafe trial. The IDA wishes to commercialize a record and is in debates with other banks, an orator pronounced in an e-mailed respond to questions, disappearing to yield names or a timeline.

“We need committed partners,” an IDA said. “Trade financing is borderless and banks that do adopt this record will be means to advantage regardless of a nation of origin.

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