Business owners often underestimate the value of a good business accountant, with many thinking that they can ‘save money’ by doing their best to manage the bookkeeping themselves. Not only can this often result in the business owner using a large amount of their time to complete these tasks, but they can run the risk of repercussions from the Australian Tax Office (ATO) and potentially increase the chance of unnecessary financial costs. An external accountant can provide vital knowledge about the ways in which your business is being run and identify any barriers to profitability.
Here are 4 of the ways that an accountant can save your business money:
Having professional take care of your bookkeeping ensures that your business is working with accurate information to inform its decisions. Without accurate and efficient bookkeeping, you may struggle to make informed financial and management decisions. Without this, your year-end accounting work may take longer to complete resulting in a large cost to the business. Additionally, unreliable financial records can also act as a barrier when applying for finance or when trying to sell your business.
Bookkeeping experts ensure you maintain accurate and ‘clean’ financial records to help you to understand how your business is performing, allowing you to make informed financial decisions and save both time and money in the long run.
Optimising your tax management while complying with the various government regulations can be a complicated process, especially when getting it wrong could result in a hefty bill or an audit by the ATO. Your accountant can:
- Assist with your tax structuring,
- Bring order to your taxation obligations, and
- Cleverly manage them on an ongoing basis to provide the best possible outcome for you.
Building financial models allows accountants to run different scenarios and change variables. Being able to project these numbers therefore means accountants can provide your business with a clearer path of the potential future ahead for your business based on statistics and data. Financial modelling is absolutely essential to understand the risks and rewards of any significant project you might be considering and your ability to finance that project.
Finally, an accountant can work with you to plan your business growth and development, providing hands-on support to assist your business and help with specific projects that can make a significant difference in the size and performance of your business.
The business advisory services offered by your accountant could be what you need to take your business to the next level. Working closely with your accountant to incisively interpret and communicate your financial position and other important information will help you make strategic decisions to achieve your business’ desired outcome. Having a professional that you can rely on to set targets and monitor your progress will not only help you to save money but to maximise your profits.
Business owners can often be unaware about the roles that accountants play for their business, thinking that all they offer is bookkeeping and tax filing services. However, accountants can provide a range of positive influences on the decisions that you chose to make as a business to help you save money and maximise your profitability.