Accountants are often seen as guardians of tax and compliance. However, their expertise extends far beyond these areas.
They can act as problem solvers, assisting with a range of tasks that can set the stage for a smooth and profitable business operation. Here are eight ways your accountant can help your business flourish:
Assisting with business formation
Launching a new business is never straightforward, and there can be bumps in the road that may not become apparent until it is too late.
The structure of your business, whether it is a sole trader, partnership, or company, comes with unique tax obligations, paperwork, and, potentially, personal liabilities.
An accountant can guide you in choosing the most suitable structure for your business, potentially saving you significant time and money.
Guiding business acquisitions or sales
If you are considering selling your business or acquiring a new one, consulting with your accountant should be your first step.
Accountants can assist with business valuations, develop exit strategies, and compile the necessary financial reports and documents to ensure you make informed decisions.
They can also help minimise costs and protect you from entering into deals that will not benefit you in the long run.
Improving cash flow
Inadequate cash flow management is a common cause of business failure. Your accountant can help by conducting a comprehensive business analysis, rebalancing your budget and debts, optimising your cash flow, and building cash flow forecasts.
By helping you understand your financial obligations and adjusting the way funds are used in the business, you can avoid disrupting relationships with suppliers and staff, ensuring your business operates as smoothly as possible.
Streamlining business operations
Decisions that may seem straightforward can become critical when they involve financial considerations.
Accountants can assist with decisions such as whether to buy or lease equipment, where to rent office space, and how to evaluate supplier terms and conditions.
They can help price your products to maximise profit and reach a broader customer base. Accountants can also identify underperforming areas in the business and suggest potential expansion opportunities.
Implementing cloud software
Your accountant can help automate many of your business’s monthly bookkeeping tasks and establish an invoicing system that provides a clear overview of paid and unpaid invoices using the latest cloud accounting packages.
This intelligent software, such as Xero, Sage or QuickBooks, can even send reminder emails to clients about unpaid invoices, saving you time and helping you stay on top of your finances.
Effective accountants build relationships with other successful businesses. If you are seeking suppliers or investors, your accountant may be able to connect you with the right people.
At some point in the life of a successful business, additional financing may be necessary.
Whether it is securing a loan to navigate challenging times or attracting investors for essential expansion, obtaining this funding will require well-structured and clear financials.
Your accountant can help you structure your investment proposals and loan applications in a way that appeals to investors, showcasing your business and increasing the likelihood of your funding efforts succeeding.
Daily inventory management can be challenging. However, your financial records can provide your accountant with valuable insights into your stock room operations.
Your accountant can analyse trends over time and suggest necessary changes to ensure peak operational efficiency.
The role of an accountant can extend far beyond just assisting with taxes.
By helping you in every aspect of your business, your accountant can help you sidestep various challenges and contribute to the creation of a successful, efficient, and streamlined business.