5 Ways Accountants Help Business Owners Make Smarter Business Decisions

Many entrepreneurs do not realise that starting your own business means you’d have to deal with its downfalls. Surprisingly, most companies do not even reach their one-year mark and go bankrupt. One of the reasons for this is poor financial and accounting management.

"An accountant can do wonders for small or starting companies. Since they can take a comprehensive assessment of your finances, an accountant can serve as a vital part of your financial advising team", connotes business advisor and start-up business loan provider Shane Perry of Max Funding.

Consider hiring an accountant after registering your business. Partnering with an accountant will undoubtedly help you achieve your goals for long-term success!

To see the bigger picture, here are five ways how an accountant can help a business:

1. Help With Operations

Accountants help businesses with regular and daily operations by making monthly preparation and up-to-date analysis of financial statements. Financial analysis can help you make informed decisions with the latest data. They can also oversee payroll, estimate tax payments, and do bookkeeping duties throughout the year.

2. Maintain Financial Stability

If your business finances are well-ordered, you have an accurate and detailed view of how much money comes and goes. An accountant can create accurate forecasts for future expenses and revenue, ensuring that you have enough cash reserves to get you through any tough times ahead.

Their forecasts and budgets can help guide your business and stay in line with your goals. Stable finance also means you wouldn't need to cut down on expenses or employees.

3. Prevent Accounting Mistakes

Almost 60% of businesses in Australia fail within their first three years, and a key factor to this is financial mismanagement. Having an accountant means you wouldn't have to worry about accounting or financial mistakes that can cost you business money. They can prevent small and huge mistakes, like avoiding missing a tax deadline which causes hefty penalties.

4. Help In Making Crucial Business Decisions

Proper and reliable accounting offers you updated financial information and data about your business. These are what you need to make crucial financial-related decisions. Accountants can also help you calculate the potential implications and consequences of making big purchases or hiring more employees.

An accountant can serve as a financial advisor to help you budget and monitor cash flow on a consistent, daily basis.

5. Plan For The Future

The main benefit of hiring an accountant is getting valuable advice on planning for the business's future. You can use financial reports from past months to help examine your business's seasonality. These financial records can give insight into your cash flow and expenses, which can help you make smarter decisions about marketing your business.

Accountants can provide you with objective advice on the best way to financially support the longevity of your business. Moreover, working with a skilled accountant can help grow your business. If facing any acquisitions or mergers, an accountant can help smoothen the process.

Hire An Accountant For Your Business

The life of a business owner is challenging, especially since you are solely burdened with making the big decisions. Having an accountant on your team can help ease up the load and pressure. They have the skill and expertise to guide you through all the crucial decisions that can impact your finances and possibly set you up for lasting success.

A reliable accountant can perform excellent bookkeeping work, manage payroll systems, handle BAS and IAS, and make comprehensive financial reports. Here at Solution In we strive to ensure all of your accounting needs are met and provide professional business solutions.

Our Offer For You!

Are you considering accessing an accountant for your business? We know this can be a big decision, so our offer to you is to come in for a FREE 30 MINUTE CONSULTATION with one of our expert accountants and have a chat to learn more about how we can you grow your business.

To book your free consultation call us on 0405 012 345 or book an appointment online.

We look forward to meeting you!

Written by guest contributor Rebecca Santiago