At Altruic Advisors, our remote accounting team knows that strong working relationships are dependent on good communication. When you work with an accountant who isn’t regularly spending time in your office, proactive communication is crucial. Remember - there are some things that we simply won’t know unless you tell us!
Here are a few common situations that you should always communicate to your accountant to ensure that your financials are up-to-date and compliant with current accounting standards.
Signing a New Lease
With the new lease accounting standards going into effect, this is a topic that has likely been on your accountant’s mind. Your accountant may be asking you to share any existing leases that you have – for property, equipment, office space, or anything else. Always be sure to let your accountant know when you sign a new lease so they can properly account for it on your balance sheet in accordance with the new standards.
Moving to a New Office
A move to a new office space is obvious to any employee who goes into the office each day, but your outsourced accountant may not know that you’ve relocated. Let your accountant know as soon as the new address is in use so they can update their internal records and any public-facing documents.
Asset Disposal
Your accountant probably keeps an eye out for any expenses that might need to be capitalized. It’s relatively easy to identify when a new asset is purchased, but it’s harder for an accountant to know when an asset (such as computer equipment) was discarded, sold, or recycled. When it comes to the disposal of an asset, we won’t know unless you tell us! If you sell or otherwise dispose of an asset, let your accountant know so that they can update your fixed asset schedule.
Restricted Funds
If your accountant sees a large donation come in, they will usually ask if there are any donor restrictions on those funds. However, you can make your accountant’s life easier by telling them before they have to ask. In order to properly track the balance of restricted funds in your accounting system, your accountant needs to know when restricted funds are received, as well as when they are spent.
If you’re unsure whether something needs to be shared with your accountant, it’s best to err on the side of oversharing. Most accountants would much prefer to have too much information than not enough! The more proactive that an organization can be in sharing information, the smoother things will run with an outsourced accountant.