The importance of accounting cannot be undermined or overlooked, regardless of the size of a business. Multi-nationals and other large companies tend to have whole departments and professionals dedicated to this vital business function. Sadly, this is rarely the case for start-ups and small businesses.
If you run a small business, you should consider seeking out a professional accountant. Here's how they can come in handy.
Start-Up Phase and Growth
Starting out on a new idea, small businesses can be a daunting task for the owner or manager. Accountants assist with the initial planning phase, which involves allocating of available financial resources, re-directing of existing resources to accommodate the growth or expansion, and implementation of the plan.
One of the core responsibilities of accountants is to keep a keen eye on the financial status of your business. They are then able to advise on the areas to optimise, avoid, improve on-such as attracting new customers/target audience and expansion opportunities. These measures are all geared towards profits maximisation, which is the sole purpose of the business.
Measures such as restructuring and layoffs may be difficult, especially for small business owners who are attached to their business, and staff accountants offer a fresh and unbiased perspective on your business to optimise profits.
In many instances, small business owners miss out on lucrative growth opportunities as they are focused on running the business and attending to existing customer base. Trained accountants have the skills and knowledge required to recognise and embrace growth opportunities.
Cash Flow Forecasts and Management
One major area where several small businesses fail, especially small, family-owned businesses, is cash flow forecasts and management. In most cases, proprietors will often mix personal and business finances, leading to confusion and mismanagement.
Accountants help in forecasting cash flow based on the business health and sales, separate your finances, and adjust your business plans, such as growth and expansion plans, based on the calculated forecasts.
Legal Compliance
Regardless of the business size, finance is a testy subject. While large established businesses would be able to recover from liabilities and mistakes, small businesses often experience hard hits, and in the worst-case scenario, total bankruptcy.
Accountants offer professional guidance through the intricacies of financial compliance regulations and requirements, such as taxation and practices that may attract rebates and exemptions.
Compliance keeps you on the right side of the law and can boost growth, as it is a major selling point when making a pitch to suppliers, investors, financiers and potential customers.
Accountants add value to small businesses, whether start-ups or existing establishments. For positive input, consult a trained and certified professional. Though their services come at a fee, the rewards are well worth it.
Share29 April 2019
Lots of people want to invest their money so they can look forward to a better tomorrow. However, not everyone feels confident when making financial decisions. I know that I was filled with terror at the thought of having to work out how best to invest my hard earned cash. I was almost at the point of giving up when I was introduced to a wonderful financial advisor. The advisor reviewed my accounts and made some suggestions about how best I could invest my money. I followed his advice and in the process, I have learnt a great deal about the world of finance.