Several studies and data have shown that more than 70% of small businesses end up insolvent because of poor cashflow planning, poor financial control and ineffective strategic management. A dedicated accountant can help prevent this and help you with the following:
1.SAVING TIME AND COSTS
Small business owners spend so much time and effort managing their own records and finances that are prone to errors and can even expose them to risk for non-compliance. As a business owner your focus should be on doing what you do best; running your business, winning those contracts and generating profits.
Engaging an accountant who is in touch with the latest tax laws, rules and regulations and latest accounting practices can offer you valuable insights to your business ultimately saving you hours and huge costs, so your time can be more effectively dedicated to other aspects of the business.
2.REDUCE YOUR TAX LIABILITY
Tax can be complex and many business owners fail to account for items such as GST, depreciation, tax effects and other expenses.
Through expert tax planning a good accountant can forecast your tax obligations; implement effective strategies to maximum the amount of legal deductions and reduce your tax liabilities at the end of the year.
3.STRATEGIC PLANNING AND GROWTH
Business owners are more often pre-occupied with the day to day operations of running the business; hence their strategic planning takes a back seat. A good accountant is able to objectively look at the big picture and be a great source of advice in helping you implement your strategic objectives. In addition, having an accountant can help you with budgeting and monitoring cash flow to allow you to manoeuvre away from any hurdles that occur in real time.
4.AUDIT AND LEGAL ISSUES
Being prone to an audit and reviews by governmental authorities can be a nightmare for businesses whose accounts are managed by the owners themselves. This can be due to, not keeping paperwork, late lodgements, excessive deductions, and so on. These can lead to hefty fines and penalties. Unfortunately, most people think of an accountant as someone who can fix these issues after they have occurred. Only on rare occasions can they help waive these obligations if valid reasons and arguments are provided.
Measuring performance is a critical task for any business. As they say ‘‘if you can’t measure it, you can’t improve it’’. Accountants often have experience in similar business organisations to yours and also have access to industry performance data. As a result, accountants are experts in performance measurement and they can use various tools and techniques to compare your financial data with external businesses in your industry for your internal benchmarks.