You’ve sent your accountant everything they need. Or at least, you think you have. 😂
Then another email arrives.
“Can you please confirm what this payment was for?”
“Could you send through a copy of this document?”
“Do you know what this transaction relates to?”
And you’re probably thinking, Didn’t I already send you everything?
We get it! When you’re busy running a business, the last thing you want is another list of questions from your accountant.
But there’s usually a good reason we’re asking.
Why do accountants need so much information?
When we’re preparing your financial statements, tax returns or other accounting work, we need to make sure the information we’re using is complete and accurate.
Sometimes the information in your accounting software doesn’t tell us the full story.
For example, a $15,000 payment from your business bank account could relate to:
• The purchase of new equipment
• A loan repayment
• A payment to a supplier
• A transfer between bank accounts
• A personal expense paid through the business
• A payment towards an existing asset
Each of these transactions may need to be recorded and treated differently.
Without the right information, we can’t always determine what the payment was for.
And unfortunately, accountants can’t just guess. 😂
What information might we ask you for?
There are plenty of reasons we may need to contact you while completing your work.
Some of the most common include:
• Unidentified transactions: We need to know what a payment or deposit relates to.
• Missing invoices or receipts: We may need supporting documents to confirm an expense or purchase.
• Bank reconciliations: We might need help identifying differences between your bank statements and accounting records.
• Asset purchases: We may need to confirm when something was purchased, what it cost and whether it is used for business or private purposes.
• Loans and finance: We may need loan statements or agreements to correctly record balances, interest and repayments.
• Personal expenses: We might need to confirm whether a transaction was business related, private or a combination of both.
• Missing information: Sometimes a document or statement simply hasn’t been provided yet.
Even something that seems like a small detail can make a difference to your financial reports or tax return.
Why does it matter?
Accurate information helps us prepare reliable financial statements, identify eligible tax deductions and meet your reporting obligations.
It also helps us provide better advice.
When we understand what’s happening in your business, we can look beyond the numbers and identify areas that may need attention.
But if information is missing, we may need to pause certain parts of the work until we receive clarification.
This can delay the completion of your financial statements or tax returns.
How can you make the process easier?
A little preparation can save everyone time.
Before sending your information to your accountant, it can help to:
• Keep your bookkeeping up to date
• Reconcile your bank accounts regularly
• Save invoices and receipts throughout the year
• Keep loan and finance statements handy
• Clearly identify personal transactions
• Respond to information requests as soon as possible
You don’t need to know all the accounting rules. That’s our job!
We just need the right information so we can do that job properly.
We’re not asking questions just to give you more homework.
At PLH Accountants, our goal is to make the accounting process as smooth as possible while ensuring your financial information is accurate.
Sometimes that means asking a few extra questions, following up on missing documents or double checking something that doesn’t quite add up.
We know your time is valuable, and the sooner we receive the information we need, the sooner we can move your work forward.
So next time you receive another email from your accountant asking you to confirm something, remember that there’s usually a good reason behind it.
We’re not trying to make your life harder. We’re trying to get it right.
And yes, if you don’t reply, we probably will follow up. 😂