You don’t have to be a financial whiz to run a business. Having a reliable accountant will allow you to focus on your work while ensuring that your financial figures are in good shape. A proactive accountant will provide financial advice on minimising your tax obligations, maximising profits, and attaining your objectives. Accomplished business owners consistently seek for advice, regardless of the current state of their accounts.
A reliable accountant plays a crucial role in the financial well-being and prosperity of numerous businesses and self-employed individuals.
Their responsibilities include:
- Ensuring compliance with regulations
- Providing advice on tax reduction strategies
- Assisting in maximising cash flow.
Moreover, they objectively evaluate your business performance, identify areas where improvements are needed, and offer guidance on how to enhance operations.
Many accounting firms also offer business advisory and coaching services to support you in strategic planning.
Although some business owners, contractors, and self-employed individuals may be deterred by the monthly fees associated with accounting services, the age-old saying “you get what you pay for” holds true. Investing in a competent accountant will save you money in the long run and set your business up for success.
Although it’s wise to regularly consult with your accountant, seeking financial advice becomes especially crucial when:
- Starting a new business venture
- Facing difficulty in paying bills
- Seeking growth opportunities
- Preparing to sell or close your business
- Planning to seek investments
- Considering substantial bank loans
- Filing taxes or handling complex tax-related issues.
Managing your contracting finances
Don’t avoid facing reality.
Whenever you have questions or concerns, seek expert assistance. This approach helps you maintain control over any financial issues.
Fixing cash leaks
Richie operates a home maintenance and repair business and has established a solid client base. However, he often struggles to cover his costs, even during busy months.
Richie decides to seek advice from an accountant, who thoroughly examines his financial statements.
The accountant notices that many of Richie’s customers are not paying him on time, and he relies heavily on multiple high-interest credit cards for his expenses.
She assists him in establishing more efficient invoicing methods, consolidating his debts, and shifting to a credit card with lower interest rates. She also collaborates with him to create guidelines on when to use the credit card for work expenses and when not to. Additionally, she provides guidance on how he can better manage his finances in the future.
Accountants vary in their styles and areas of expertise.
Some primarily specialise in bookkeeping and tax-related matters, while others provide a comprehensive range of business services.
If you’re just starting out, it’s important to find an accountant who has relevant experience working with individuals in your specific industry and stage of business, such as launching a start-up or transitioning into self-employment. By doing so, you can derive the greatest benefit from a diligent and proactive accountant who thoroughly examines your financial records and identifies potential issues before they become significant problems.
Tips on systems that can help at tax time
Introduction to taxes and levies
If you need assistance with your everyday finances, a bookkeeper could be a beneficial option.
They can ensure that you stay on track with your accounting, tax, and payroll responsibilities.
When you have your first meeting with your accountant, it’s important to provide them with a comprehensive overview of all aspects of your work.
Useful documents to bring along may include:
- Previous financial records
- Cash flow forecasts
- Projections
- A business plan
If you are new to business, contracting, or working as a sole trader, it would be beneficial to consult with an accountant who specialises in these areas. They can assist you in creating these documents and guide you through other crucial initial steps, including:
- choosing a business structure
- registering for GST
- getting set up with an accounting system
- running you through asset checklists
- finding the right sorts of funding
Be ready to answer a multitude of questions and face challenges when working with a good accountant – they will thoroughly analyse your documents and ideas to gain an accurate understanding of your business’s financial well-being.
It’s common for your accountant or lawyer to request to verify your identification. This is done in order to adhere to the anti-money laundering regulations.
- Only seeking assistance when your situation worsens—consulting with an expert early on can potentially prevent financial difficulties from arising in the first place.
- Failing to seek guidance from an accountant when making significant business decisions.
- Continuing to work with an accountant who isn’t the right fit for your needs—finding an accountant you trust, and who possesses relevant experience working with businesses similar to yours, is crucial.
Are you struggling with accounting and business management for your business? We are here to help! Get in touch with us to discuss how our expert services can support your business’s success. Contact us today to schedule a free consultation and see how we can add value to your operations.
