An accountant can do more for your business than you think. With one around, you can run your business with confidence and focus on important business tasks. So how can an accountant like Roy A McDonald help your small business succeed?
1. Develop a Business Plan and Launch a Startup
Starting on a new business venture is exciting, but at the same time challenging. You need to know that you are going to make money and be able to pay debt if any. A good accountant will help you identify your startup costs, where to get financing, forecast revenues, and plan a strategy to ensure profitability.
2. Manage Cash Flow
So many small businesses fail at the onset because they lack proper cash flow management. At some point, some businesses simply run out of money to pay suppliers, employees, and lenders at the wrong time. Accountants know the ups and downs of the revenue stream. By organising strategies to ensure you always have money in the bank, they help you stay in the game.
3. Deal with Unpaid Invoices and Manage Debt
Dealing with debtors with unpaid invoices can be a headache. Your accountant can help you collect accounts receivables by reminding customers when to pay their bills. At the same time, he or she can help you procure much needed financing and determine the best repayment options. You will also get advice on when to use spare cash to pay for loans or reinvest in the business.
4. Create a Budget Plan
Budgeting is a time-consuming process. Your accountant can help get rid of this stress by creating an accurate budget tailored for your business needs. You will know with confidence how much money to reinvest, when to grow your business, when to hire additional staff, and how much to pay yourself.
5. Set Up an Accounting Software
An accountant can help automate your business for you by setting up an accounting software to track sales, expenses and other cash-flow-related concerns. A smart software can provide you with key performance indicators (KPIs) so you can determine the performance of your business on a regular basis. Knowing precious financial data can help you come up with better business decisions at any point in time.
6. Manage Inventory
Revenue is affected by inventory management as well. You can lose money when your run out of stock, or sometimes lose money because of piling up on the not-so-profitable items. Managing your inventory smartly is critical for your small business. Your accountant can help you identify what items you need to procure and what items to get rid of. This can also be tracked using software.
7. Minimise and Manage Taxes
A smart accountant can help your business in so many ways, especially with taxes. There are a variety of strategies that accountants use to lower tax exposure, avoid audits, deal with tax debts, and fix records. As long as your books are managed well, you can avoid audit problems and focus more on your business as usual.
Your small business can benefit from a smart accountant in so many ways. Remember that business is first of all a financial venture. You need a financial expert every step of the way. To find a capable accountant, ask around for recommendations from friends and family before checking other options.
Article written by Roy A McDonald.
This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.