26
Feb 2020
Accountants do more than you think. They can give you strategic guidance and come up with smart ways to save money or boost revenue. They will also remove or automate administrative tasks that distract you from your primary business. Get an accounting professional and you will run business with more clarity and confidence.
When your business grows beyond a specific size, it is good sense to hire a specialist to handle the accounting, so that you focus on running things. However, an upright accountant can do far more than free up your time. Businesses that employ good accountants often benefit from an extensive range of other services too, which help to save money, decrease risk, comply with regulations, manage growth, and plan. As an owner of the business, most of your big decisions will have a financial dimension, so it is only in good sense to discuss them with a professional accountant first.
So what does an accountant do? The question is what they don’t do.
1.Growth of your Business
A professional accountant will be able to offer guidance on taking your business to the next level and the best way to do it, from structuring the business accurately to making sure you avoid pitfalls such as overtrading. Some accountants will provide consultations for free, while others will require a retainer fee for regular contact.
2.Minimise your Taxes
When it comes to taxes, you don’t want to pay more than necessary, but underpaying will get you in distress with the tax department. As a result, you may stumble on the side of caution when it comes to your company tax return. An accountant can analyse your expenses and grants with much more confidence, and so should be able to find significant savings, while avoiding those costly mistakes.
3.Help with Business Strategy
There are so many moving parts in a company. Sometimes it’s hard to know where to focus. Accountants can help you figure out what is essential. They will work with you to set objectives, professional, personal, and financial. They give you the tools to measure your progress. You will end up with a set of key performance indicators (KPIs) that tell you how your business is doing.
4.Increasing Cash Flow
Handling cash flow is a vital part of the business that is often overlooked by startups. A company can run into distress quickly if it does not have ready cash to spend, no matter how lucrative it is on paper. A good accountant will safeguard that your cash flow is strong enough to guard you against risks while increasing confidence among your stakeholders and investors.
5.Stop Accounting Mistakes
Accountants help businesses from avoiding financial mistakes that could cost the business money. An accountant will avoid both small and large errors like overdrafts to bank accounts, or missing a tax deadline that could result in huge penalties.
6.Debt/Loan Management
Not all debt is created equal. The right professional accountant can help you with loan strategies or talk to you about how you can combine your debts for better money organisation. Your accountant will be able to classify which debts are urgent and which can be taken care of with flexible payments, tailoring this side of your financial management to suit your firm.
These are just some of the means accountants can work with small company owners. You can opt to employ an accountant for all your financial activity, or you can choose a combined approach the limits his or her hands-on activity, reducing the expenses.
Nothing beats a piece of advice from someone who knows and has provided services. We at JAXA Chartered Accountants are well-versed with the accounting services and make this process hassle-free. Contact us today for more information.