People usually think of accountants as compliance experts in terms of Tax Returns, BAS Statements and other purely financial data. Besides this, accountants are able to add exceptional value to your business if they play a role as strategic advisors.
These are 3 value-adding services that an accountant can offer you:
- Performance measurement and management: Your accountant can compare your financial data (both qualitative and quantitative) with your business forecasts and benchmarks, compare financial results with that of similar businesses. This is a great tool to review key areas of your business performance and compare it with the industry.
- Business Planning: Businesses with a robust business plan are more successful than those without, however your plan doesn’t have to be a huge document that takes too long to formulate. Accountants can help you develop strategic objectives and plans to make sure your business is financially viable and give great insights that you may not have considered.
- Cash flow planning and Forecasting: Cash flow problems are the reason 92% of all businesses are forced to close. Your accountant can review your business cash flow forecast, income vs expenses, highlight any potential cash flow issues and make recommendations to minimise liquidity risk.
When you think about it, your accountant has in-depth knowledge and understanding of your business and other similar businesses in your industry and a lot of what accountants learn focuses on interpreting your financial data to identify opportunities and potential issues with in your business so its very important to use your accountant as part of your management team.