Many people think accountants only deal with taxes and ensure their clients remain compliant with the law. However, this is not the case. Accountancy firms can do so much more to help the growth of your business.
They can help you solve problems and do all sorts of things that can make your business run smoother and make more money. Here are eight ways an accountant can help your business:
Starting a new business is never easy and there can be problems you don’t see until it’s too late.
The type of business you start – whether it’s a sole trader, partnership, or company – means different tax rules, forms to fill out and possibly putting your own money at risk.
An accountant can help you decide on the best type of business to start, saving you a lot of time and possibly a lot of money.
If you’re thinking about selling your business or buying a new one, the first person you should talk to is your accountant.
Accountants can tell you how much a business is worth, come up with ways to leave your business and get all the financial information together you need to make the right choices.
They can also help you keep costs down and stop you from making deals that might not be good for you in the long run.
Not having enough money coming in is a big reason why businesses fail. Your accountant can help by taking a close look at your business, helping you manage your budget and debts, and forecasting and improving your cash flow.
By helping you understand what you need to pay out and changing the way money is used in your business, you can avoid problems with suppliers and staff and make sure your business runs smoothly.
Decisions that seem simple can be very important when money is involved.
Accountants can help you make decisions like whether to buy or rent equipment, where to rent office space, and how to get the best deal from suppliers.
They can help you set the right prices for your products to make more money and reach more customers. Accountants can also spot areas in the business that aren’t doing well and suggest new areas to expand into.
Your accountant can help automate a lot of the bookkeeping tasks you have to do every month and set up a system for invoices that gives you a clear picture of which ones are paid and which aren’t using the latest cloud accounting packages.
This clever software, such as Xero, Sage or QuickBooks, can even send reminder emails to customers about unpaid invoices, saving you time and helping you keep track of your money.
Good accountants build relationships with other successful businesses. If you’re looking for suppliers or investors, your accountant might be able to put you in touch with the right people.
At some point in the life of a successful business, you might need extra financing.
Whether it’s getting a loan to get through tough times or attracting investors for necessary expansion, getting this funding will require well-organised and clear financials.
Your accountant can help you structure your proposals for investment and loan applications in a way that appeals to investors, showing off your business and increasing the chances of your funding efforts succeeding.
Managing stock every day can be difficult. However, your financial records can give your accountant valuable insights into your stock room operations.
Your accountant can analyse trends over time and suggest necessary changes to make sure your operations are as efficient as possible.
By helping you in every aspect of your business, your accountant can help you avoid various challenges and help you create a successful, efficient, and streamlined business.
