Your Accountant & Lawyer Should Talk
When I work on a commercial matter whether it be a business purchase or a negotiating a dispute resolution, one of my first actions is usually to talk to the client’s accountant. Among the most crucial relationships a business can establish and foster is the one between its lawyer and accountant. A harmonious working relationship between these two experts can provide multifaceted benefits to your business.
The benefits:
Complementary Expertise
Lawyers and accountants bring distinct, yet complementary skill sets to the table. Lawyers specialize in legal matters, including contract negotiation, intellectual property protection, and compliance with laws and regulations. Accountants, on the other hand, excel in financial management, tax planning, and financial regulatory compliance. These professionals should combine their expertise to provide holistic solutions that address both legal and financial aspects of your business.
Comprehensive Business Planning
A well-rounded business strategy encompasses legal and financial considerations. When your lawyer and accountant work in tandem, you can create a comprehensive plan that aligns your business goals with legal requirements and financial projections. This collaboration ensures that decisions related to expansion, investment, or restructuring are not only legally sound but also financially viable.
Regulatory Compliance
Navigating the intricate web of regulations is a daunting task for any business and with our ever evolving legal and financial landscape, adherence to regulations can be a continuing challenge. Lawyers can help businesses stay compliant with laws and regulations, while accountants ensure adherence to financial regulations, tax obligations, and reporting requirements. By maintaining an open channel of communication, your lawyer and accountant can work together to keep your business on the right side of the law.
Tax Optimization
Taxation is a substantial factor affecting a business's bottom line. Collaborative efforts between lawyers and accountants can lead to strategic tax planning, enabling your business to minimize tax liabilities while staying within legal bounds.
Risk Management
Risks are inherent in any business venture, but an effective partnership between your lawyer and accountant can mitigate these risks. Lawyers can help draft contracts that protect your interests in transactions, while accountants can offer insights into the financial implications of potential risks. By working together, they can identify, assess, and manage risks more effectively, safeguarding your business's assets and reputation.
Conflict Resolution
Admittedly conflicts can arise with clients, partners, or regulatory bodies. Your lawyer and accountant can aid in resolving issues by devising strategies that not only resolve conflicts efficiently but also minimize financial and legal fallout.
Lawyers tend to talk in words and accountant in numbers, each with their own jargon. Sometimes it may feel like they are speaking two different languages and when you act as an intermediary, things can be lost in translation or not be communicated at all.
If you foster an open direct communication and collaboration between these professionals, your business can maximise the benefits of their services and reduce the risk of making an adverse business decision.
Have your accountant talk to us today.
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