It’s both a reality and concern that people turn to professionals when they’re stuck in the mud, and not before. For small business owners, cutting costs where you can may seem like the sensible thing to do, but don’t forget the impact of overseeing what the experts have to say.
Having a professional accountant by your side right from the start of opening your business is often a crucial element to its success. Here are five reasons why ALL small businesses should invest in a good accountant.
Like the old saying goes, ‘it’s not the money that matters, it’s how you use it that determines its true value.’
You simply cannot run a healthy business without knowing how to handle its financial aspects, and at the beginning of your business, finance is just as important – if not more. You’ll need professional advice when purchasing the business, on your company’s legal structure, forecasting its cash flow … the list goes on (and that’s just the start!). Then, once your business is established, it is essential to have an expert who can guide you in the right direction.
If you don’t practice as finance specialist, the likelihood you know how to fully maximise your tax refund or minimise your payment is rather slim. A good accountant will continually be updating their skills and knowledge to get the best results for their clients. Many small business owners who leave their tax until the last minute will run into all sorts of financial dramas. If you have an accountant by your side to keep you on track all year round, you’ll soon find yourself reaping the benefits.
Bookkeeping, minimum wage, hours worked, annual leave, overtime rates, PAYG, super … BREATH.
Yes, there’s a lot to think about. And although these may not be the first objects that springs to mind when you open a business, pretty soon you will be organising bills and wages from all angles. It pays to know the relevant laws and your own rights. Your accountant will handle your payroll and ensure you and your employees are being paid the correct way. Plus, if you ever find yourself in a financial situation with a customer or client, professional advice is only a phone call away.
Becoming the owner of a small business can quickly spiral into dozens of job titles – supervisor, marketing specialist, team councillor, janitor. Add in bookkeeping and accounting jobs and you’ll find yourself with very little time to do your actual job. If you avoid seeking external professionals, such as an accountant, it can take you away from important tasks and cost you more in the long run. A good accountant will assist you in planning strategies and help you reach your financial goals.
“Ignorance of the law is no excuse.”
It may have been an innocent mistake, but unfortunately that’s not going to prevent you from owing thousands in fines. It’s extremely important to know the correct procedures and laws when dealing with finance, particularly when it comes to paying your employees and dealing with clients. An accountant will help you to keep accurate records, understand your profit and loss, advise you on your best structure of growth, and hopefully keep you out of trouble!