When Should you Engage an accountant for your small business?
When you're just getting your business started, profit margins and expenses are top of mind. Every organisation hopes to be successful, but your venture is more than just income and expenses; it needs marketing, great people and a quality product or service as well.
The only way to achieve the success you're hoping for is to get out of the books and into the brainstorming room: An accountant can help you grow your operations without working in the business.
We'll take a look at what it means to engage an accountant for your taxes and payroll.
What Does an Accountant Do?
As you consider the best use of your time, you may be thinking of taking tasks off your plate so you can focus back on the meaning and goal of your enterprise. Accountants' primary job is organisation — keeping a watchful eye on your enterprise's cash income and expenses, offering advice to ensure resources are utilised properly. Accountants can help manage all financial aspects to align with your business goals.
Doing your own accounting is possible, but along with taking up a lot of your time, it could leave your operation vulnerable to financial mistakes. If you're running a small business, everyone has to wear many different hats. As you're multitasking, it's not uncommon for human error, such as a calculation error or a missed transaction.
While account management software can help with some of these issues, an accountant can offer so much more. Some of these responsibilities include:
- Assist with your business strategy: A good accountant can look at your practices and recommend key performance indicators (KPIs) for how well your business is doing financially to reach your long-term goals.
- Deal with unpaid invoices: Following up with invoices and chasing vendors for payment; an accountant can take this task off your plate with automated systems and debt financing if necessary.
- Budget: An organisation requires much more than working off of an estimation of how much income and outgoing cash flow you have; a detailed budget set forth and maintained by an accountant can transform your venture workflows and its future.
- Streamline your cash flow: The right accountant can organise your finances to make the most of your cashflow.
- Taxes: Taxes can be convoluted and confusing, but an accountant can not only prepare and lodge your tax returns, but keep your books in order and ensure you're getting the right deductions so you're only paying what you must.
Engaging an accountant can help ensure your financial future is secure and free from negative attention from the Australian Taxation Office (ATO). From fixing poor record keeping to organising your tax preparation if you're ever audited, accounting services by a small business accountant can make a large impact on your financial management and business structure.
The chartered accountant professionals at Wilson Porter can help you even more with advice and guidance.
When Do You Know You Need to Engage an Accountant?
An experienced accountant can offer valuable services to your business, but realising when your organisation may need to seek the services of one is a fine line. As your enterprise grows, there will be more need to delegate certain responsibilities as often as possible. Here are some things that may come up that would indicate it's time to engage an accountant.
- Mistakes in your books.
- Long past-due invoices.
- Tax season is coming up.
- You need financial advice.
The Difference Between Bookkeeping and Accounting
As you explore your options, you may come across similarities between accountants and bookkeepers. Although they work together, they perform very different tasks within the same department. Bookkeepers will track and record financial data. An accountant will take this data and make useful and relevant recommendations to your needs.
A great accountant can perform the duties of both a bookkeeper and an accountant — saving you money in the long run of hiring both.
Before Getting Started
When looking for an accountant, you'll need one that will suit your expectations. If you're a sole proprietor, a business owner looking to change your business structure or a medium-sized organisation exploring options, there's an accounting firm for your needs.
Some accountants focus primarily on single proprietorships, small businesses, tax return preparation and more. However, a venture is not an island and will need certain features as it grows — you need an accountant that can scale with you.
What Happens When You Reach Out to Wilson Porter?
An accountant from Wilson Porter is a long-term extension of your venture. When you reach out to us, we'll get to know the ins and outs of your financial situation and wellness, your goals and how you operate so we can formulate a personalised plan. As chartered accountants, we are your monetary advisors, tax return preparers and bookkeepers all in one.
We'll conduct a discovery session with you featuring a questionnaire about your needs and fiscal goals. Using our decades of experience and personalised touch, we'll create a plan that fits your expectations.
A Long-Term Partnership
Cleaning up your books is only a small percentage of what it means to run a successful organisation. While there are contract accounting firms and accounting software out there, the long-term benefit of engaging with an accountant is that you never have to worry about your financial records, paying taxes on time (or correctly) and so much more. Whether you're preparing for tax season or looking for answers to reach the next stage of your business, Wilson Porter chartered accountants can help you along the way.
To learn more or to get started, contact us today.