“The fundamental question is whether you want your business to look forward or backwards”, says Craig Clinton, Director at Drummond Laurie Chartered Accountants.
We’re sitting down with Craig to discuss the traditional once-a-year, compliance-based approach to business accounting. It has been the mainstay of the business-accountant relationship for decades; the external advisor reviews and reports on what has happened.
But in a business landscape that is changing quicker than ever before, is that approach enough?
“Retrospective data is valuable, but business decisions based on what has already happened are always going to be reactive”, explains Craig. “Relying on financial data that’s almost a year out of date is a big risk for any business.”
Is one meeting a year with your business advisor still enough?
The impact of recent global events on supply chains, prices, and government policy has underlined just how important it is for businesses to work with current financial information. As costs continue to fluctuate, business owners are rightly questioning whether a couple of meetings a year is still enough.
“In our experience, it isn’t”, says Craig. “The one or two meetings a year to discuss the final tax bill or year-end accounts isn’t enough. The rate of change in, for example, input costs and salaries alone requires a more regular review of pricing and profitability.”
“Business owners need a clear understanding of what is happening in their business now so they can prepare for what could happen in the future. That can only be achieved with a proactive business advisor, and that’s the approach we take with every Drummond Laurie client.”
Maximising the potential of the business advisor–business owner relationship
Craig is quick to point out that the benefits of swapping a reactive advisor for a hands-on one go beyond simply working with up-to-date financial insights. This holistic approach offers many more significant upsides for the client: “Working together regularly gives the advisor a better understanding of the owner and their business.”
“If we can understand your goals and ambitions for your business, we can better support you in achieving them.”
Craig continues: “We very much view ourselves as trusted advisors to business owners. We want to be a sounding board for them instead of simply reporting on what has happened.”
The idea that an external business advisor could play such a pivotal role might seem alien to those used to the traditional model: “There can be a perception that the accountant-business advisor relationship is purely transactional. One that’s characterised by each party working almost in complete isolation.”
“The old model fails to maximise the potential of the business advisor – business owner relationship. That’s an opportunity every business owner I work with wants to take full advantage of.”
For Craig, the proof ultimately lies in the outcomes: “We know that being involved in decision-making and strategic planning can, and does, unlock real value and growth for business owners”, he says with assurance. “The success of our clients is proof of that.”
Swap your reactive business advisor for one that cares about your business
Ready to swap your once-a-year catch-up for a responsive relationship with your business advisor? Drummond Laurie Chartered Accountants are proud to be trusted partners for clients across Scotland and the UK. We help business owners unlock their potential and achieve their goals.
For an informal chat about how we can support your business, contact Craig Clinton or call 01324 464317.
You can also learn more about Drummond Laurie, our services and our clients.
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