Why do your accountant and lender need to work together?
We are often asked why it’s important for an accountant and lender to collaborate. Is there actually any benefit?
In short, yes! From our experience, the benefits are numerous and also crucial for your long-term financial health and success.
Accountants are no longer just ‘bean counters’ or gatekeepers; they are the nucleus of your financial position and can guide you when borrowing, investing, and growing.
What's the role of borrowing for financial health?
Companies and individuals borrow money for various reasons, such as purchasing a property, starting a business, acquiring new equipment, or enhancing cash flow. While borrowing can provide the funds needed to achieve your goals, it’s important to understand how it impacts your overall financial health, long-term objectives, and future financial capabilities.
Your lender can help you prepare the necessary documents and understand the loan’s figures. However, they may not understand the state of your overall finances or how borrowing now may affect your future borrowing power, business positions, and cash flow.
That’s where the collaboration between your accountant and lender becomes vital.
Always let your accountant know before you start any borrowing applications, to check they fit with your broader financial strategy.
Timing and types of loans
When is the right time to borrow? What types of business loans are available? How will these impact your tax obligations? This is where we come in.
Alongside your lender, we support you in navigating the financials and working through the right time to borrow (when the tax advantages best suit you). We can suggest structures (e.g. SMSFs are often a great place to buy commercial property) and anything else you need to put in place prior to your application.
Looking for short-term options to get you through? If you don’t thoroughly analyse all the elements of these types of borrowing, you can create additional unsustainable business deficits, leaving you much worse off.
Are you not sure where to find a reliable lender? Please don’t Google it, as you might not know your lender’s true competency level until it’s too late!
Lean on us. We can refer you to our trusted network of lenders. Individuals and companies who share our values.
Already have a lender you know and trust, we can collaborate with your current broker, too.
Collaborative approach for financial success
Our job is to collaborate with your broker to ensure your finances are in the best shape for securing a good loan. We provide comprehensive financial reports and data to support your borrowing needs.
This collaboration ensures you receive not only short-term but also medium-term and long-term solutions that benefit your cash flow and business profitability.
At Sphere, we believe in old-school values like answering the phone and providing personalised service. The lenders we work with share the same ideals, a focus on customer service and ensuring the best outcome for your unique business needs.
Our network of professional services, including lenders, raves about working with us. They know that with the Sphere team, they are partnering with a collaborative, experienced team dedicated to achieving the best outcomes.
Adapting to changes
A collaborative approach ensures that both your accountant and lender are aware of any changes in your financial situation.
This enables us as accountants to adapt your financial plan, explore investments that offer tax advantages, look for the right time to finalise a loan, assess the times when you should refinance for a better deal, and be 100% sure that it is the right time to borrow again for a new investment to add to your portfolio.
Our goal is to always support clients in making informed decisions that will optimise their tax position and help them achieve business growth.
At Sphere, we get it, and we are here to support you!
