How an accountant can help a small business
Dealing with financial issues as a small business owner can be a feat if you try to handle it on your own.
Having a dedicated or even temporary business accountant on your side can alleviate financial stress. An accountant can assist your company, helping you understand its overall financial health and identifying avenues for growth — and even highlighting opportunities to help you save during tax season.
Here, we'll dive into how an accountant can help your small business with tips on budgeting and more.
What do accountants do?
When it comes to your business' financial health, an accountant can not only keep you on track but help you plan as well. A small business must stay on top of its finances because every dollar matters. Accountants can help you save money, invest and spend wisely.
Managing finances on top of your many other responsibilities as an owner can easily get overwhelming and lead to overlooking important details or failing to keep track of vital information. When these things pile up, you could be left spending more than you're earning, filing your taxes incorrectly, missing out on savings and more.
More specifically, accountants compile, analyse and put together financial records for your business. They will then interpret your cash flow and provide you with advice based on your business structure in layman's terms to ensure you can follow up on your business goals, remain compliant with the law and put your money to work for you.
Work more efficiently with an accountant
An accountant can help you improve the efficiency of your business. Without needing to focus on the money side of your work, you can focus more on improving your company.
A great option for managing your business cash flow and budget is hiring an accounting service from a firm that can help you with all of your business needs. Instead of hiring someone full time, you could opt to hire an experienced accountant for the busiest time of year for companies: tax season.
Budgeting and bookkeeping
Analysing information and helping owners arrive at the right decisions for their business is no easy task. For a good accountant, however, this is their bread and butter.
Budgeting for your business is just as important — if not more — as budgeting for your personal expenses. An accountant can help you by first understanding your business goals and formulate an applicable budget.
Your sales and marketing departments may seem to butt heads when it comes to income and necessary expenses. An accountant can put your next marketing venture into numbers that both your sales and marketing teams can understand. These three teams need to work together to make the best decisions for your business.
Accountants are also the contact for unpaid invoices. When you are working with vendors or ongoing clients, an unpaid invoice is bound to crop up. An accountant can stay on top of getting the invoice paid so that you are always working towards finishing the year on top – instead of chasing after invoices that should have been paid months ago, but got swept under the rug and forgotten.
Tips on how to get ahead of your business finances
If you decide to hire an accountant full time, they may ask to install accounting software that can make their jobs more efficient. This technology can help eliminate human error and assist your accounting department grow as you scale your business. With a comprehensive software package, accountants and bookkeepers can enable more understanding of data insights that help run your company.
Hiring an accountant for your small business is a game changer for your finances. They can help you set up a separate bank account so you can keep track of your money, capital gains, losses and tax obligations.
Financial understanding doesn't come naturally to everyone. That's why an accountant is the best decision for small businesses. You started the company not because you wanted to sweat over spreadsheets all day, but because you have something you're passionate about. An accountant can help you get out of day-to-day financial micromanagement and back into scaling your business.
You have the chance to ask as many questions as you need to when you hire an accountant. They help you understand where your finances stand, so asking them questions about where your money is going and where they think it would work better is within their wheelhouse.
Is there a way to save more during tax season? Did you forget to add something to your budget that is eating away at your expendable income? What about that one employee who has been working hard and deserves a raise? Do you have the capital to cover that?
Wilson Porter has the business solutions you have been looking for and the chartered accounting professionals you need. Contact us today to ask questions or get started.