Do your financial statements say you’re making money, but your bank account tells a different story?
You're staring at the reports your accountant sent over, filled with terms like “COGS,” “gross margin,” and “net profit,” but none of it feels connected to what’s actually happening in your business. You’re embarrassed to admit you don’t understand, and you assume you should already know.
Most accountants speak “accounting,” and most business owners speak “operations.” Somewhere in between, critical information gets lost, and it’s costing you real money. Not because you’re doing anything wrong, but because the person handing you the numbers might not see it as their job to explain what they mean.
At Patrick Accounting, we've spent over 20 years helping business owners bridge that gap. We’ve seen how miscommunication between accountants and owners leads to missed opportunities, cash flow confusion, and costly mistakes that could’ve been avoided with the right conversation.
In this article, you’ll learn why this accountant–business owner language barrier exists, what it’s actually costing you, and how to turn your financial reports into a decision-making tool, not a source of stress and confusion.
Why Accountants and Business Owners Struggle to Communicate
Let's start with the fundamental problem: Accountants speak "accountingese," and business owners speak "English."
Most accountants are trained to produce accurate financial statements and file taxes correctly. They're excellent at the technical side of their job. But very few are trained to translate what those numbers actually mean for your specific business.
You expect insights and education. You want to know what the numbers mean and what you should do about them. Your accountant thinks their job ends when they hand you a perfectly formatted profit-and-loss (P&L) statement.
They're delivering compliance. You need clarity. And that gap is costing you opportunities, money, and peace of mind.
How Accountant Miscommunication Hurts Your Business
Let's talk about what this language barrier is actually costing you, because it's probably more than you think.
The "I Have Profit But No Cash" Confusion
This is the story we hear over and over again. Your accountant shows you a P&L statement that says you made $500,000 in profit last year. You should be celebrating, right? But when you look at your bank account, there's barely anything there.
You're confused. You're stressed. And you're wondering if your accountant made a mistake.
Here's what's actually happening: Profit and cash are two completely different things. But if your accountant hasn't taken the time to educate you about this, you're left feeling like something is very wrong.
Maybe you bought that big piece of equipment last year. Or you paid down a chunk of your business loan. Or you took money out to pay off your house. All of those things reduce your cash but don't show up as expenses on your P&L statement.
A good accountant should explain this to you proactively. They should say, "Hey, you spent $200,000 on that tractor you probably don't even really need. That's why your cash is low even though you show a profit."
But most accountants just hand you the report and move on. And you're left wondering what you're missing.
Missed Strategic Opportunities
When you don't understand your numbers, you can't make informed decisions about the future of your business.
Should you raise your prices? Hire another employee? Open a second location?
These decisions require you to understand your margins, your cash flow, and what's actually driving profitability. If your accountant isn't helping you understand these things, you're either making decisions based on gut feel or you're paralyzed by uncertainty.
Wasted Time and Frustration
How many hours have you spent staring at financial reports trying to figure out what they mean? How much mental energy have you wasted worrying about whether you're missing something important?
The frustration of not understanding your own business's finances is exhausting. And it's completely unnecessary.
What Business Owners Really Need From Their Accountants
So, what should you be getting from your accountant?
Translation Services. Converting financial jargon into plain English. Not "your COGS is at 42%" but "you're spending 42 cents of every dollar on products, which is higher than industry standards."
Education and Teaching. Helping you understand what the numbers mean and why they matter. Not just once, but as an ongoing process.
Context and Interpretation. You need to know why your labor costs went up 15%, whether that's a problem, and what you should do about it.
Industry-Specific Insight. If you own a restaurant, your accountant should understand food costs and labor percentages. If you run a service business, they should understand job profitability and labor efficiency.
The Difference Between Data Entry and Strategic Accounting
Basic bookkeeping is just data entry. It's not strategic accounting.
A bookkeeper inputs your transactions, reconciles your bank accounts, and produces financial statements. That's important work, but it's tactical, not strategic.
Strategic accounting involves interpretation, education, and guidance. It's the difference between someone who can tell you what happened and someone who can help you understand what it means and what to do next.
This is also why working with an accounting firm (not just one person) can be so valuable. A team gives you access to different areas of expertise, like someone who understands your industry, someone who specializes in tax planning, and someone who can help with strategic decisions.
One person can't possibly know everything, but a team can cover all the bases.
3 Signs Your Accountant Isn’t Communicating Clearly
Not sure if you're dealing with a communication problem? Here are three clear warning signs:
1. They Hand You Reports Without Explanation
If you're getting P&Ls via email with no context or follow-up conversation, that's a red flag. Financial statements should spark conversations, not replace them.
2. They Can't Answer "Why" Questions
When you ask why something changed, they just repeat the numbers back to you. "Your food costs went up because you spent more on food." That's not helpful. You need to understand what's driving the change and what you should do about it.
3. You Dread Meeting With Them
If conversations feel like pop quizzes where you're supposed to know what they're talking about (but you don't), something is wrong. Meetings with your accountant should leave you feeling clearer and more confident, not more confused and stressed.
How to Fix Miscommunication With Your Accountant
You don't have to accept this communication breakdown. Here's what you can do right now to get the clarity you deserve:
Ask for a "Translation Meeting." Request a sit-down where your accountant walks you through your reports line by line in plain language. Don't let them rush through this. Take the time you need.
Identify Your Top 3 Metrics. Work with your accountant to determine the 2-3 numbers you should actually be watching based on your industry and goals. For a restaurant, this might be food costs, labor costs, and average ticket size. For a service business, it might be gross margin by job and labor efficiency.
Request Regular Check-Ins. Monthly or quarterly conversations focused on education, not just compliance. These meetings should be about helping you understand your business, not just filing paperwork.
Don't Be Afraid to Ask "Stupid" Questions. Gross margin, profit vs. cash, depreciation. These are confusing concepts. The only stupid question is the one you don't ask. A good accountant will be patient and explain things as many times as you need.
What It Looks Like When Your Accountant Gets It Right
So what does a healthy accountant-business owner relationship actually look like?
They proactively explain changes in your numbers before you have to ask.
They use industry-specific language you understand, such as labor efficiency for restaurants, job profitability for service businesses.
They ask YOU questions about your business to make sure they understand your context. They want to know about your goals, your challenges, and what keeps you up at night.
They act as teachers and guides, not just data processors. Most importantly, you walk away from conversations feeling clearer and more confident, not more confused.
Make Your Financial Reports Work for You
After working hard to build your business, it’s frustrating to stare at financial reports that don’t actually help you make decisions. And that confusion doesn’t fall entirely on your shoulders or mean you’re doing something wrong. You’re probably just not getting what you need from your accountant.
Now you know what’s missing: context, translation, and guidance. And once you recognize that, you can start asking better questions, expecting more from your accountant, and using your numbers to actually lead your business.
Check out our article "How to Have Strategic Meetings with Your Accountant" to learn exactly what productive financial conversations should look like, and how to make them happen.
At Patrick Accounting, we believe our most important job is helping business owners turn financial reports into real clarity. If your accountant isn’t helping you do that, we should talk.
