Does your business have an accountant? If not, you could be missing out on an opportunity to take your business to the next level. Below are some benefits of hiring an accountant for your business.
The business plan is a document detailing how you plan to grow your business. The accountant will help you with the financial aspect of your business plan. Typically, they will check your starting capital, assets and projected sales to create the balance sheet and profit and loss account for the next three to five years. These projections, alongside other elements of the business plan, will help determine the viability of your business. Besides, you can use the document to secure funding for your business.
The accountant will keep a constant eye on your business revenue, sales, and the cost of doing business. More often than not, start-ups fail because owners are unable to separate business from personal expenses. As such, they run down the business without knowing. Your accountant will check your books to prevent you from making fatal mistakes. The professional can also help you conduct damage control to prevent the business from sinking. For example, they could help you cut business expenses. Besides, you could let go of some business assets.
The accountant will also help you manage your books of accounts. They will prepare daily, weekly or monthly records to give you a glimpse of your business performance. The accountant can also recommend suitable accounting software for your business.
An experienced accountant will help file your annual business taxes. Further, they will conduct regular assessments to understand how you can make tax savings. For instance, you could claim tax deductions on asset write-off, trading stock and pre-paid expenses. If you have a taxation issue, the accountant will present your case to the Australian taxation office.
Managing Business Growth
The accountant will help you manage your business growth. They will assess your books of accounts to identify your business patterns. For instance, you can restructure your business to suit your demand and supply patterns. For example, you could buy more stock during the high season and reduce your expenses during the low season.
When choosing an accountant, you will need to conduct some due diligence to ensure that they are qualified and experienced. Preferably, the accountant should specialise in your industry. It ensures that they understand taxation and accounting laws that affect your business.