While accountants can play a valuable role in business decisions, I see and hear of situations where the accountant has too much of a say.
In one situation recently an accountant told a newsagent they should put tobacco products into their business because all newsagents have cigarettes. This was in a business the accountant’s client had recently purchased, their first and the first newsagency for the accountant.
The previous newsagent had got out of tobacco five years earlier because of falling sales. But here was this accountant telling someone new to the channel and new to retail that they should get into tobacco. They did.
That was almost a year ago. It has not gone well.
The accountant thinks the retailer failed. The retailer thinks so too. This is despite evidence in the business data showing growth elsewhere in the business, where the retailer backed their own instincts.
This is one example. There are plenty in our channel, where accountants have provided advice that is either out of date, not relevant to a transforming newsagency today or plain wrong. And there are plenty of examples where accountants have provided excellent advice to newsagents.
Some decisions are not about the numbers alone. With the extent of change we are confronting, taking a risk beyond what the numbers show will be key to success in a year or two.
It is important to remember it is your money on the line. As the business owner, you have to back yourself. Relying too much on an accountant who is not in the business, who may not have relevant knowledge about your channel, may hold you back. It could head you in an inappropriate direction.
My advice is to by all means listen too your accountant. However, have the data and knowledge to make decisions yourself, and in a timely manner, based on your own evidence. The pace and scope of change today demand this from us in business.
Mark,
As a qualified Accountant, I should be offended by your branding of accountants. However, no offence taken, I have come to realise though that accountant in Australia includes the various bookkeepers, form fillers, data entry clerks, payroll processors and unqualified franchisees who masquerade under the title accountant.
Choosing the right Accountant is where businesses go wrong. If the focus is on filling in annual returns and regulatory compliance to achieve the lowest annual cost, then you get a supplier who will most likely be unqualified to provide advisor services.
If you want an advisor Accountant, then you need to select based on the experience being offered and you need to accept that advice needs to be paid for. If you select a supplier accountant, don’t expect to receive unpaid for advice.
The correct Accountant can be invaluable. The advice may have a cost, but it will be unbiased without strings attached or alternative motives.
If you use a supplier accountant rather than an adviser Accountant. Question yourself, where can you get impartial advice?
Hi Mark and Colin,
I’m wondering if you can help out as I’m trying to find out how Newsagents currently get to key information to help them “have the data and knowledge to make decisions” (yourself, and in a timely manner, based on your own evidence).
Is it a manual process of bringing data together from multiple sources? What are these sources of data (POS, Excel?)
Thanks,
Peter
Peter, individual newsagents have access to this through their POS software. Those in proactive groups can access a higher level of data there.
All information required can be obtained one way or another from newsagent’s individual trading data. A good up to date POS software program is ideal as a starting point however from there it is a multiple collection of data from different sources that ascertains the individual businesses performance.
A number of well produced excel spreadsheets are essential if you want intricate performance detail.
Thanks for that Graeme.
So it looks like a POS would be common at newsagents. What other systems (apart from Excel) would exist? A CRM or accounting like Xero?
The background to my question is I’m assessing if newsagents would have a need to automatically bring data together to create those Excel spreadsheets, saving manual effort.
Thanks again,
Peter
Peter my POS software company has it s software in 1,750+ newsagencies. Each has access to the data being discussed here, through the software.
Peter, This subject needs quite a bit more expansion in discussion than one system does all for analysis and extended reports are necessary to obtain individual business’s performance in both Sales and especially profitability. You can contact me for further discussion if you wish.
Tower Systems software is very good others also offer excellent data however none are complete…yet.
Thanks Graeme.
What’s the best email address?
Peter
Peter
graeme@bpanalysis.com.au
will reach me or http://www.bpanalysis.com.au
I may have repeated this inadvertantly
Graeme