When was the last time your review your business profitability? Do you feel like you’re making money, but have little in your bank account? Keeping track of your goals and the money that’s going in and out of your business can be confusing. We often find small business owners who are already time poor, attempted to manage their own books and the financial side of the business, instead of working with an accountant and bookkeeper, to save money. While there are several accounting software that you can use for doing your own books, things can get out of control pretty quickly if you’re not diligent. You could end up spending countless hours to keep on top of your finances.
Many small business owners are running their business without knowing their financial position and hoping for the best. Hoping for the best is not a brilliant strategy when you are talking about planning your business and navigating the ever changing tax regulations. It can be a maze and can be very difficult to keep up to date with all changes to the law, particularly as your tax position changes based on your changing circumstances.
So, how can your accountant help with this?
The days where your accountant just compile your accounts and lodge your tax return are well and truly over. As modern-day accountants, our role is to provide value to you and your business. We are far more interested in being your business partner, helping you with your financial performance, your business strategy, and providing value-add services that put you in better control of your finances.
If you partner with the right accountant, we can actually save you money in short, medium and long-term. We work alongside with you and help you achieve your business goals, whether it means growth, work-life balance, freeing up your valuable time, or a combination of all of those.
6 areas your accountant can help with your financial health
When asked about increasing profit, most people automatically think about cutting costs. But that’s just one way. There are a lot of other factors to consider, such as knowing your revenue drivers. We talk all about it in our blog How to Use Your Revenue Drivers to Improve Sales.
This is where working with an accountant adds a significant amount of value. We will help you identify where you’re spending money and why you’re not achieving your profit targets. We will help put you back in control of your finances, and that’s never been more needed than in the current economic climate.
So what specific things can we do, and what will the impact be on the future of your business?
Our purpose is not just doing your annual accounts and tax returns. We believe all businesses will benefit from:
1. Tax advice and annual tax planning
Tax can be one of your biggest expenses as a business. With our expert knowledge, we will focus on a range of tax planning options, applying all the relevant tax incentives, and ensuring you minimise the taxes on your profits. We will also save your business money by keeping on top of tax deadlines. Penalties for late submission add up, and it’s better to use this money to invest in your business.
2. Budget and cashflow management
Cash flow is crucial for all businesses, particularly for start-ups and small enterprises. We’ll help you prepare a financial forecast for your business and show you where your money is going out and coming in, so you can achieve the ideal positive cash flow position.
3. Spend management and cost control
An important way to improve your cash flow is to focus on cost control and spend management. Effective spend management can help your business removing unnecessary costs and redirecting savings to drive growth and improve your profit.
4. Forecasting and financial modelling
When we understand the key financial drivers in your business, we can build you a full financial model. This allows us to change the variables, run different scenarios and forecast the various future paths of your business. Being able to project these numbers forward gives you a clearer view of the path ahead. That’s invaluable in the challenging economic times that we all face at present.
5. Better management reporting and information
Your decision making stands or falls on the information you have available to you. We provide detailed management accounts, breakdowns of key metrics and forecasts of your cash flow, spending, aged debt and revenue, all of which helps you to save money, make sound decisions and keep the revenues flowing into your business.
6. Ongoing advice to support the growth of your business
As seasoned accountants, we have the business knowledge to help you make more informed decisions. We gain insight from doing your financials and we are in perfect position to assist you make plans for the future, improve your performance and grow your business. We will help you create or revise your business plan to help you move your business in the right direction and avoid wasting time and money on strategies with a lesser chance of success.
Talk to us about how we can save you time and money and help unlocking the true potential of your business
Rather than running your business on a wing and hoping for the best, you can get a clear picture of your business financials by working with us. We’ll help you cut unnecessary costs, optimise the most profitable parts of your business, and increase your return on investment. If you’re still unsure, this article may help identify when you should hire an accountant for your small business.
Reach out to us if you would like to talk about how we can work together to support your ongoing business profitability.