This can lead to problems, such as not submitting your tax returns on time, paying bills late and not chasing money that is owed to you. This can result in large fines and cash flow problems, which can ultimately have a long-term detrimental effect on your business.
That’s why we always recommend that small business owners employ the services of an accountant. An accountant will not only help you manage your cash flow, but they can provide valuable advice about how to best manage your business finances.
Here are five reasons why you should consider using an accountant:
1. Reduce Your Workload
Managing the day-to-day accounts of your business is a time-consuming process, and it’s not time you are going to be paid for. So in most cases, it makes sense to outsource your bookkeeping to an accountant as soon as possible.
A professional accountant will not only help to keep your books up to date, freeing up your time for more productive tasks, but they will also develop processes to better manage your cash flow and provide valuable advice to help keep your tax liability to a minimum.
2. Get All Your Tax Deductible Expenses
An accountant will help you understand deductions, and give you a list of deductible expenses. This is an often overlooked benefit of employing an accountant, but the money they can save you on deduction alone will often cover the cost of their services.
3. Fact-based Financial Planning
Many small business owners base their financial planning on short-term objectives. They often react to scenarios such as a short-term pick-up in business and commit to large capital outlays, which leave them exposed when should demand slow.
A professional accountant can help you make more prudent financial decisions based on the income your business is generating. This will stabilise your cash flow and give you the confidence to invest when the time is right.
4. Learn Best Practice
Accountants have experience managing accounts for businesses of all sizes, so they know what works and what doesn’t work for your type of operation. You can benefit from this information by developing a system of best practices for your business.
For example, they can help establish a bookkeeping system to help sole traders keep track of their expenses to better manage their cash flow, and they can develop systems to chase late payments, something many small business owners have problems with.
5. To Ensure You Remain Compliant With Changing Regulations
Regulatory changes are a major concern for small business owners. The ATO changes tax regulations frequently, which can make it difficult for small business owners to remain compliant.
An accountant will be familiar with any upcoming regulatory changes that may impact your business to make you aware of them in advance. This will give you peace of mind that your accounts are always completed in line with the latest regulations.
Do You Need Help With Your Business Accounts?
As registered CPA accountants, we can provide the services and advice your business needs to meet its obligations as it grows. Arrange a FREE consultation today by completing the contact form here or give us a call at (07) 4957 2985 for an informal chat.