Businesses can come in all sizes, from a sole trader startup to a multinational corporation, but one thing that links them all is the importance of numbers. A smart entrepreneur knows that concentrating on the bottom line, the final profit, is all important, but they should also realize that a high-quality accountant can do much more for their business than keep track of money and produce annual accounts. Here are three reasons why an accountant should be a central part of your business, rather than a once yearly afterthought.
Making You More Tax Efficient
Every business has a duty to its staff, customers and, where appropriate, its shareholders to maximize their profitability, as that allows them to keep their products competitively priced as well as allowing staff to be well remunerated. Too many businesses, especially startups and SMEs, fail to claim the allowances they’re entitled to. They, therefore, pay more tax than they actually should. Expert accountants, holding qualifications such as the master of science in accounting from New England College Online, know all the latest tax legislation, and will be able to advise you what you can and cannot claim as allowable expenditure. This could make a big difference to your tax bill and, therefore, your profits, while still ensuring that you comply fully with tax laws.
Creating A More Accurate Business Plan
All startup entrepreneurs should know how important their business plan is, for without setting ambitious yet achievable goals it’s impossible to know whether a business is on track or not. A business plan is especially important in a company’s early stages, as the forecasts within it can be used to apply for funding that could make the difference between success or failure. This can cause problems for startup entrepreneurs, as they may not be able to make accurate assessments regarding future sales or profit margins. An accountant can prove invaluable in this scenario, as they can draw upon their own experiences with similar companies to ensure that your projections are accurate and, therefore, of more value to potential investors.
Risk Analysis And Problem Solving
All business will encounter unforeseen problems or temporary setbacks at some point in their early stages, but it’s how the business reacts that’s important. An expert and experienced accountant will be able to provide risk analysis at every stage of the development of your business, and they can also provide quick and relatively pain-free solutions that prevent longer-term difficulties developing. Risk analysis is learned by accountancy students at New England College and other leading institutions, and this knowledge, combined with their experience as an accountant, can make them an entrepreneur’s most important asset when the going gets tough.
Maximizing tax efficiency, creating more accurate and valuable plans and forecasts, and spotting developing financial problems and then nipping them in the bud are just some of the services that a high-quality and well-qualified accountant can do for your business. With increasing numbers of people opting to start their own business and become their own boss, hiring the right accountant is a step towards a secure and profitable future for their new enterprise.