How Do You Know If Your Accountant Is Good?
Having an accountant does not automatically mean your business finances are in good shape.
A business can have someone preparing accounts and filing returns while the owner still doesn’t know how much the business is really making, where the money is going, or whether there are financial problems that need attention.
A good accountant should do more than record transactions. They should help you understand your numbers, stay compliant, and make better financial decisions.
So, how can you tell if your accountant is actually doing a good job?
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You Understand Your Numbers
You should not need an accounting degree to understand what is happening in your business.
A good accountant should be able to clearly explain your revenue, expenses, profit, cash position, debts, and tax obligations. If you regularly receive financial reports but have no idea what they mean, something is missing.
For example, if your business made UGX 100 million in sales but you only have UGX 5 million in the bank, your accountant should be able to help you understand why, and whether that is a problem.
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They Don’t Only Talk to You When a Tax Deadline Is Near
An accountant’s role should not begin and end with filing tax returns.
Good financial management requires regular attention. Your accountant should help you identify issues early, rather than informing you about them when a deadline has already passed or a penalty has already been incurred.
Regular reviews can help identify unusual expenses, cash-flow problems, unpaid invoices, tax obligations, or other issues before they become expensive.
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Your Tax Obligations Are Properly Managed
A good accountant should help you understand what taxes apply to your business and when they need to be paid.
This includes keeping track of relevant filing deadlines, maintaining proper records, and ensuring that tax returns and payments are accurately prepared.
They should also help you understand legitimate tax planning opportunities rather than simply telling you how much tax you owe after everything has already happened.
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Your Records Are Always Up to Date
If you ask your accountant for your latest financial position, you should not hear, “Let me first update everything.”
Your financial records should be maintained consistently throughout the year.
Bank transactions, sales, expenses, invoices, payroll, taxes, and other relevant records should be properly captured and reconciled. This gives you a reliable picture of the business at any given time.
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They Ask Questions About Your Business
A good accountant should understand more than your spreadsheets.
They should know what your business does, how it makes money, what your major expenses are, and what financial challenges you are facing.
If your sales suddenly increase or your expenses rise significantly, they should be curious about why.
That understanding allows them to provide advice that is relevant to your actual business, not generic financial advice.
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They Help You Prepare for the Future
A good accountant should not only tell you what happened last month. They should help you think about what comes next.
Whether you’re considering hiring employees, buying equipment, taking on a loan, opening another branch, or seeking investment, your accountant should help you understand the financial implications before you make the decision.
For example, if you’re considering a UGX 200 million business loan, they should help you assess whether your cash flow can realistically support the repayments.
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You Feel More In Control, Not More Confused
Perhaps the simplest test is how you feel about your business finances.
After speaking to your accountant, do you have a clearer picture of where the business stands and what needs to happen next?
Or are you left with more questions than answers?
A good accountant should bring clarity, structure, and confidence to your financial management.
Your Accountant Should Be More Than a Number-Keeper
Your accountant plays an important role in helping you understand the financial health of your business.
The right support should help you maintain accurate records, stay compliant, identify potential problems early, plan ahead, and make informed decisions.
If your accountant only appears when it’s time to file a return, it may be worth taking a closer look at whether your business is getting the financial support it needs.