How a good accountant can work to improve your business
Accounting is a core consideration for every business in Australia. No matter the size of your company, its location or the industry in which it operates, you need to keep track of a variety of financial information, report it accurately and pay required taxes to federal and state authorities. And that's just the tip of the iceberg when it comes to how accounting works in business.
Accountants fill a valuable role in this process. Their years of education and experience, and the rigorous certification process developed by regulatory bodies such as CPA Australia and the Chartered Accountants Australia and New Zealand, mean they're uniquely suited to handle a variety of accounting needs.
Let's take a deeper look at why accountants can be so valuable, and how you can leverage them to improve your business.
Bringing an expert onto your team
Small-business owners have to wear many hats. Along with the products or services they provide, they must oversee all aspects of operations. From hiring staff to negotiating with vendors and marketing to clients, small-business owners take a leadership stake or directly contribute to many key processes. Oftentimes, that means owners and leaders develop new skills, while on the job or while starting up their business, far beyond their past work experience and education.
However, there are some areas that are so complex as to feel overwhelming or discouraging for business owners. If you don't have a deep and relevant background, accounting may be one of those areas. While you can likely take on tasks like calculating and paying payroll tax and handling day-to-day bookkeeping, or use the many tools provided by the Australian Taxation Office, these efforts will not always be enough. The technical knowledge and professional expertise needed for effective accountancy are difficult to develop while also running your company. In many cases, bringing a certified, trustworthy accountant into the fold can be a very beneficial choice.
Saving you time and supporting your operations
Professional accountants are held to high professional standards. They commit to objectivity and avoid bias and conflicts of interest in their professional work, as CPA Australia highlighted. These rules allow businesses owners, as well as the general public, to place their trust in the accounting professionals that serve them.
Hiring an accountant means you can focus on the areas of your business where your time and effort will make the most impact, while your accountant handles the tasks and responsibilities that they're best suited for. That can lead to a variety of benefits for your business in terms of productivity and growth.
Outside of freeing up time for you and your staff, the work directly handled by accountants working for small businesses also creates some major advantages. If you ask your accountant to analyse your company's financial data and business performance, you gain a much clearer picture of where your operations stand and the valuable context provided by a dependable professional.
Accountants can also forecast your cash flow and help to predict likely scenarios tied to business performance. While these are ultimately estimations, they're educated ones provided by an expert in such work. An understanding of where your business is as well as where it could likely go in the future can help you make the best decisions possible. And having an accountant handle your taxes takes a major ongoing burden off of your shoulders.