How an Accountant Can Help Your Business Grow
As a small business owner on a limited budget, you may think that the cost of an accountant is not the best use of your money. If you have a background in accounting and a solid understanding of finances, it may be a good place to cut costs. However, if you are lacking experience in accounting and bookkeeping and hope to just learn as you go, you may be hurting your business in the long run and making a costly mistake.
Accountants are much more than just ‘number crunchers’. They can provide a wealth of knowledge on how to improve your cash flow and grow your business, and can become a vital part of your team.
Here’s a list of ways in which an accountant can help your small business grow!
SETTING UP YOUR BUSINESS
Setting up your business correctly from the get-go can go a long way in helping it succeed. An accountant can help you create the foundation for a successful business from the very start by:
helping you determine the appropriate structure (e.g. sole trader, partnership, company, trust)
preparing a financial analysis: one of many parts of a successful business plan
providing advice on opening a business bank account
providing advice on accounting software
providing advice on tracking expenses
completing due diligence on any potential business purchase
COST STRATEGY
82% of small businesses fail due to cash flow problems. Your accountant can help improve cash flow, by providing an analysis of all of your expenses and advice on the best ways to cut costs and save money. This may include creating a detailed and accurate budget that shows you the real cost of doing your business, how much you should reinvest back into the business, and how much you should pay yourself. They can also help you create accurate forecasts for future revenue and expenses, so you can ensure you have enough cash reserves to get you through tough times.
TAX PLANNING & SAVING
An accountant can assist you with tax planning to ensure you maximise any deductions that will bring down your annual tax bills. The extra money saved can be used to reinvest into your business to support growth.
GUIDE YOU IN THE DIRECTION OF GROWTH
A good accountant can help you out with so much more than tax and bookkeeping! If utilised correctly, your accountant can be your trusted business advisor, offering you professional advice on how best to grow your business. They can hold you accountable to your business goals, and monitor your cash flow and expenditure to ensure your business is tracking in the right direction.
FREE UP YOUR TIME
As a business owner, you are an expert at what you do. But you may not necessarily be equipped to deal with the financial side of your business. Handing this over to an accountant will give you more time to focus on the areas of the business that you are skilled at.
Whilst it may seem daunting to bring on an accountant when you’re trying to keep costs down, doing so can ultimately bring more money into your business and help it to succeed and grow.
Still worried about the cost?
Get in touch today and we can discuss a package that works best for you.