Top 5 Questions to Ask Your Accountant Before Making a Major Business Decision

We here at John P Burke & Co. Accountants regularly work with business owners who are weighing up big decisions, from buying or selling a commercial premises to relocating, expanding or investing in property for the future. In almost every case, the owners who feel most confident about their choice are those who spoke to their accountant before committing rather than after. Asking the right questions at the right time can turn a leap of faith into a well-informed decision.

Why Bring Your Accountant in Early

Accountants are often involved only once a deal is done, when the paperwork needs to be recorded and the tax return filed. By then, the opportunity to shape the decision has passed. Involving them at the planning stage gives you an objective view of the numbers, highlights risks you may not have considered and can reveal better ways to structure the same decision. Here are five questions worth asking before you sign anything.

1. What Will This Do to Our Cash Flow?

A decision can look profitable on paper and still put serious strain on the bank account. Buying premises, taking on a new lease or hiring staff all involve costs that arrive before the benefits do. Ask your accountant to map out the cash position month by month, including deposits, fit-out costs, professional fees and any delay before new revenue comes in. Understanding when the pressure points will fall allows you to plan for them rather than be caught out, and to decide whether the timing is right or whether waiting a few months would make the move more comfortable.

2. What Are the Tax Implications?

Most major decisions have tax consequences, and the timing and structure can make a significant difference. Selling a property or business asset may give rise to capital gains tax, buying commercial property carries stamp duty, and the way an asset is purchased affects the allowances available. In some circumstances reliefs may apply, for example where an owner approaching retirement disposes of qualifying business assets. Your accountant can explain the position and whether a different approach, such as holding property in a separate entity or adjusting the timing of a transaction, would be more efficient.

3. How Should We Fund It?

Paying from cash reserves, borrowing, bringing in investors or using asset finance each carries different costs and risks. Ask how each option would affect your balance sheet, your ability to borrow for other purposes and your personal exposure, particularly if a lender is likely to seek a personal guarantee. Interest rates, repayment terms and any early repayment penalties matter as much as the headline amount. If you are also planning a personal property purchase, it is worth considering how business borrowing and the way you draw income might affect a mortgage application.

4. What Happens If It Does Not Go to Plan?

Optimism is essential in business, but good decisions are tested against less favourable outcomes too. Ask your accountant to model a downside scenario. What if sales grow more slowly than expected, interest rates rise or a key customer leaves? How long could the business sustain the new commitment before it became a problem? Knowing your break-even point and your exit options gives you a safety margin and often makes lenders more comfortable as well.

5. How Does This Fit With My Long-Term Plans?

Every major business decision should support where you want to be in five or ten years' time. If you intend to sell the business, pass it to the next generation or retire, a decision made today can either help or hinder that goal. For example, owning the premises your business trades from can be a valuable asset in retirement, but it can also complicate a sale if a buyer wants the business without the building. Your accountant can help you see how today's choice connects to your wider financial picture.

Getting the Most From the Conversation

Come prepared with as much detail as you can. Quotes, projections, draft lease terms or a property brochure all help your accountant give practical advice rather than general observations. Be open about your personal goals and concerns, and allow enough time before any deadline for the figures to be reviewed properly. A short meeting at the right moment can save far more than it costs.

Where property is involved, pairing your accountant's advice with up-to-date local market knowledge gives you the fullest picture. Understanding realistic values, rental levels and demand in your area helps ensure the figures your accountant is working with reflect what is actually achievable.

If you would like to discuss buying or selling a property, contact us on 016217410 or email info@johnpburke.ie or visit johnpburke.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.