Most people can afford not to hire an accountant. But if you own a business and you absolutely want to succeed, then having a business accountant is a must.
Not all those who run their own business take pleasure in doing their books. Though often, small business owners do their own bookkeeping and accounting in an effort to save money– never mind if they have to sacrifice sleep or their weekends for it.
For these people, it is a luxury and additional expense they don’t need. After all, with all the accounting software available today, they can do the books themselves.
But do you know that results from a study conducted by a leading accounting software no less, put accountants in the middle of why small businesses succeed? Hiring a business accountant is a good business practice and can put your small business in a great advantage.
It is not a luxury or a lifestyle decision. It is a good business decision. Business accountants can help you grow your business. They can give you that extra sleep you need and a weekend spent only with families and friends—not with your books.
Not convinced yet? Here are 6 important reasons why you should hire a business accountant.
- Assess Expenditures and Identify Savings
You may be an expert in your business but an accountant is an expert at identifying unnecessary costs. Accountants have an eye for money in the wrong column. Hiring a business accountant will help you identify savings and business losses including labour costs, advertising expenses, and everyday outgoings.
- Structure Invoicing and Increase Cash Flow
An accountant can help you setup an automated invoicing system that includes financially viable payment terms. Cost-effective billing will reduce your waiting time for money to come in and ultimately improve your business cash flow.
- Review Product and Service Price
Set up a pricing structure base not only on the going rate or how you want to charge for your products and services but also on operational costs and actual costs of products.
Charge systematically and hire an accountant who can recommend the best price for all your products and services so you don’t charge too high or too little– both bad for business.
- Keep Tax Obligations to a Minimum
Tax avoidance is bad and illegal. Minimising tax obligations is not. In accounting lingo, they call this tax planning.
Your business accountant can make analysis of your unique financial situation and recommend tax-efficient strategies for you and your business.
Also consider that if you don’t have an accountant, you’ll likely miss out on tax breaks and fail to claim expenses you’re legally allowed to.
- Manage Bad Debts
There’s a reason why small businesses with accountants succeed. Accountants, especially experienced ones, can plan, restructure, and create strategies to reduce your bad debts and any interest you may be paying.
Having a business accountant is vital to your business growth just as loans are an inevitable part of running a business.
- Set Clear Financial Goals
An accountant can help you grow your business by setting clear financial goals. All businesses need not just growth goals but financial goals as well.
Your accountant can help set financially sustainable and realistic goals for your business so you’re not just winging it hoping to make a profit.
Don’t mistake saving money on an accountant for a strategy. The proactive approach to running your business is hiring an accountant. So, if you’d like to speak with an experienced business accountant in Mornington, get in touch with a representative from Sphere Accountants & Advisors. We can help you grow your business. And stat!