Many small business owners think they’re saving money by handling their affairs themselves. While it’s a real asset to learn the basics of bookkeeping, cash flow management and tax obligations, hiring an accountant to oversee these things has many benefits. Leaving your books in the hands of a pro will free up time so you can focus on serving your clients and implementing plans for growth. Here are a few ways an accounting professional can help you save money that you can reinvest back into your business.
1. Saving money
There’s no one more suited to saving you money than an accounting professional who can sort and systemise your bookkeeping. Better record keeping is the easiest way to allow you to quickly see – on a monthly, weekly or daily basis – where your money is going so you can cut costs if need be. Keeping your accounts up to date will also help you understand which of your business investments yield the greatest returns so you can be more strategic about spending. An accountant can spot trends that you can take advantage of to earn greater profits – and even find savings with vendors, staff and operating expenses. Hiring someone to manage your accounts will also reduce the costly errors that are commonplace when business owners try to manually track their expenses.
2. Avoid tax penalties
Your accountant may be your trusted advisor when it comes to keeping up to date with the latest regulations for small business taxes. They can also provide you with expert advice on how to maximize your benefits and minimize your taxes each year. Don’t underestimate the cost savings of hiring someone to complete your tax returns correctly and submit them on time. Penalties for late lodgements can quickly add up, so the longer you wait to lodge, the more likely you’ll incur penalties and/or interest charges. A business owner who is struggling with cash flow may not be able to pay penalties, which only increases the pressure. Having an accountant on board will let you rest easy knowing that everything will be up to date.
3. Business advisory services
Your accountant possesses business knowledge that can help you make more informed decisions. Rely on your accountant for advice when you draft or revise your business plan; those key insights on assessing profitability will help you move your business in the right direction – and avoid wasting time and money on strategies with a lesser chance of success. Look to your accountant to help you determine your most valuable clients, how much money you need to invest in a growth plan and which marketing strategies yield the best ROI. Having someone you can rely on to help set targets and monitor your progress is an invaluable asset that can help you not only save money, but earn greater profits.
What is the bottom line? Your accountant can do much more for you than simple bookkeeping or ensuring you’re on the right side of the ATO. Hire an accountant and you’ll be doing a lot to help increase your chances for long term growth and success.
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