3 Ways Accountants Add Value to Your Business

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3 Ways Accountants Add Value to Your Business

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Why do businesses need accountants? Well, as a business grows, so too do its needs. In the same way, you hire additional managers and entry-level employees; you would hire an accountant. It may sound like a luxury to hire an accountant, but it’s important to remember that one person cannot perform too many functions before they become too thinly stretched. When you hire a specialist, you reap the benefits. The cost of hiring an accountant versus the value they add is undeniable. Here are three ways accountants add value to your business.

Accountants Implement a Financial Strategy

In good times and bad, accountants are playing the long game. A financial strategy involves assessing the historical financial data of a company to look for growth, wasteful expenditure, and areas of potential growth. With this information, accountants can plan for the future and find ways to increase profits. This information leads to more informed business decisions. Your accountant will help you decide whether it’s time to branch out and offer new services and products, assess your capacity for growth, and determine whether you can recruit new employees, amongst other things. Accountants assess these matters through analytical accounting practices, advanced sales analysis, and financial reports.

Accountants Ensure Tax Compliance

It’s not uncommon for business owners to face extreme levels of anxiety each year as tax season rolls around. Submitting all the correct documents on time and ensuring tax compliance is no small feat for business owners. This is one of the primary reasons business owners employ accountants. Accountants maintain records throughout the year by constantly documenting transactions with creditors and debtors, monitoring expenditures, and submitting payroll information to the Australian Tax Office. Beyond general bookkeeping, an accountant advises business owners on the ideal structure of their business so that they are able to save money while maintaining tax compliance. Tax laws change regularly, and the right accountant will keep abreast of new developments and current tax laws.

Minimise Accounting Mistakes

For those performing several functions in a company, the addition of even basic bookkeeping may be strenuous, leading to mistakes. Accountants have an eye for detail, and there is value in that precision. Mistakes can lead to loss of income, loss of clientele, getting in trouble with the ATO, and missing tax lodgement deadlines. More than the figures and the deadlines, a company’s financial strategy relies on accurate reporting and attention to trends, eliminating excessive expenditure, and the correct allocation of funds. Without clear focus and attention to detail, this information may be overlooked.

Accountants are no longer the ‘numbers people’; accountants add value to businesses large and small. The result of a proactive, business savvy, strategically involved accountant; can be seen in a range of business dealings. Accountants assist in tax savings, financial strategies, increased profitability, and the realisation of long-term financial goals. Accountants are not nice-to-haves; they are essential employees and advisors.

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