While many businesses take pride in their product or service, this does not provide a solid foundation for business success. As any investor or bank will tell you, the proof of a business’ success lies in its numbers.
However, many business owners in startup or high growth phases believe they don’t have the cash flow to sustain an ongoing accounting service. New research conducted by the International Federation of Accountants illustrates that this is a business’ first mistake.
Using accountants is directly linked to a better bottom line and business performance.
Here are a few ways that accountants can boost your business outside of tax season.
Every business goes through peaks and troughs. This means you need to manage your cash flow to meet high demand during the good times and carry you through low demand during the bad times. With the help of an accountant, you can devise exactly how much cash flow is required to keep you afloat, removing the anxiety from the natural highs and lows of business. Trend analysis also ensures that your business is always moving forward and working towards clear financial goals.
Insight on how to increase performance
Sometimes, the key to unlocking new profits comes from saving and streamlining certain areas of the business, or opening a new income stream. An accountant has the experience to see areas of opportunity and improvement, simply by looking at your financial records.
Too often, businesses owners catch risks when it is too late. This is often through no fault of their own – they have simply been too busy with the actual day-to-day running of the business. An accountant brings an essential outside perspective to your business, and can objectively point out where the biggest financial risks lie, helping you to address them before they become disasters.
Apply experience in similar business to your tax and accounting needs
No matter how complex or unique your business may appear, it is likely that your accountant would have encountered a business of a similar size, working in a similar industry. This knowledge can be applied to identifying the challenges and opportunities within your business’ finances, as well as structuring your tax efficiently.
Build a strong financial infrastructure
Not all accounting software and systems are created equal. Some are suitable for small businesses while others are much better for high-growth, medium to large businesses. As your business evolves, it is important to have a solid technical infrastructure for your recordkeeping. This not only creates efficiency at the end of every month, but forms the building blocks for your business’ financial history. The correct software makes it easy to analyse trends and make financial forecasts. This helps you on a practical level, and builds the track record you will need if you ever want to apply for finance from an investor or a bank.
In conclusion, an accountant removes the stress of financial management from your business, allowing you to apply your strategic thinking to moving the business forward.
With an accountant’s expert advice, you can work together to build a business that is not only financially viable and compliant, but a true expression of your unique vision.