RETAIL STRATEGIES

Small business best practices by TOM SHAY

Our prompt for this article is the designation of May as “ Talk to Your Accountant ” Month , according to one of the online sites that track things like this . It is the appropriate month to do so , as there is little value in talking to the accountant when they are about to submit your taxes .

After all , what can be changed on the tax return ? And you are with accountants during their busiest time of year . Speaking with them in May makes more sense . While there are extensions being filed for some of their clients , an advantage you have is that you are coming to the conversation with four months of the current year completed . You also have eight months to improve in the current year , whether you need to focus on margins , turn rate , expenses or sales .

In addition to the content of the conversation , what is of great importance is your participation in the talk by asking good questions and understanding what the accountant is saying . A personal experience was how this writer discovered the challenge .

The accountant we had used for years had passed away . A recommendation was given to an accountant based on his work with an investment firm and their clients . It was after the third year of having worked with this accountant that the person who gave the recommendation spoke of a recent conversation with the accountant . “ I guess you heard that Shay fired me ,” said the accountant . “ Yes , I did ,” was the response .

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“ He doesn ’ t get it as to how you work with an accountant . You are supposed to put papers in an envelope , deliver it to me and let me do my work . He wanted to talk about the stuff ,” said the accountant .

“ I see why he fired you ,” said the person who gave the referral .

At least there are others who understand the concept of working with an accountant .

The conversation with the accountant does not mean you want to do your own tax return and other forms . It means you want to understand . Of additional importance is the information you have that the accountant does not .

As an example : The issue of depreciation . This is the process of taking an asset — like a building , fixtures , equipment — and decreasing the value over a period of years . The depreciation is a “ non-cash ” expense , meaning unlike payroll or an electric bill , you are not writing a check for it . However , it is an expense .

The amount of depreciation and how it is taken should require input from you . As an example , if you anticipate your business is going to make more profit in the coming years , you will want to take more depreciation in those years , and less depreciation in the current years .

All of this starts with your input to the accountant about your expectations of your business in the coming years . If you have not had this conversation with the accountant , then the accountant is taking a guess on your behalf . Is that the way you want this to go ?

Your having a conversation — and your active and knowledgeable participation in the conversation — is very important for your business . May is a good time to talk to your accountant .•

Tom Shay is a lifelong small-business owner and manager . He has authored 12 books on small business management ; a college textbook on small business financial management and co-authored a book on retailer / vendor relations .

8 Beverage Dynamics • Spring 2025 www . beveragedynamics . com