This probably isn’t the most encouraging way to start – but did you know that around a staggering 80 percent of U.S. businesses fail within the first 18 months? Don’t be scared about this statistic though – there are many things that you can do in order to prevent that, but to be able to do so, there are some variables that need to be considered and researched.
One of the biggest reasons for the above-mentioned statistic about business failure is due to poor financial management. On the other hand, many business owners tend to, because they want to avoid unnecessary expenses avoid hiring a business accountant. The ironic thing is the fact that “losing” money to pay a business accountant is actually going to save you a lot of money down the road, and not only that – and we are going to talk about all these aspects in more detail throughout this article.
Since it’s the first thing that we have mentioned, it’s only natural that this will be the first aspect that we will explain. The most important thing to understand about this is that if you hire a good business accountant, they will be intimately familiar with a particular field, product, and/or service, which is something that you really need to study and have experience in, in order to be able to use all that knowledge efficiently. These professionals continually analyze business data and look for places where you can cut expenses. Some examples of this would be excess inventory, extraneous staff, as well as deductions. Having all of that in mind, it’s only natural to deduct that lower costs translate to higher profits.
Boosting your income
This reason is the direct consequence of everything that we have mentioned in the section above, but there are a couple more perks to it. The core aspect of a profiting business is to have a steady, growing cash flow that can be predicted at all times. This is where your business accountant comes into play – a financial expert can help you optimize and regularize revenue stream by being in charge of accounts receivable, improving debt collection, and advising wise investments.
This is something that most untrained people aren’t able to do out of pure intuition, and if they do try to do so, many mistakes tend to happen. And it’s not just about analyzing data that already exists, a trained accountant can also review market rates for the products or services that you provide, and accordingly adjust your prices up or down in order to maximize income.
Tax matters are no easy task
As a company grows, taxes and payroll become much more complex, due to the fact that there are a lot more variables and applicable regulations that need to be considered. As experts from Hammond, Inc. explain, dealing with taxes is an extremely daunting task since just a minor mistake could mean a lot of trouble down the line, and having a professional that knows exactly what needs to be done allows you to have up-to-date financials and further give you the ability to be released of this burden. Basically, by having an accountant you are putting this matter into credible hands, and are hence able to focus on your business more.
The importance of having more free time should never be disregarded! As a business owner, you already have enough on your plate even disregarding the time that it takes to take care of taxes, compliance, payroll, insurance, and similar You should be focusing on generating revenue and growing your business, and not signing checks or preparing financial statements – especially if there is someone that can do it more efficiently and take that stress of your back.
And let’s be clear here, the purpose of saving time isn’t because you are lazy and don’t want to do this by yourself – it’s nothing like that. It’s just for the fact that everything that you need to assess takes time, and dispersing your time in order to tackle everything is just going to lower the quality of the work done, leaving you exhausted and frustrated, and that is something that should definitely be avoided.
Regulating your overall expenses the right way
In many cases, business owners aren’t even aware of all the expenses and their impacts, mostly due to the fact that there are too many variables to be considered, and it’s just not possible to evaluate every expense. That being said though, it is pretty important to do so, and this is something that your accountant can help you with. By being aware of your expenses and their impacts down the road, you gain important insight into the viability of those investments.
By being aware of these factors, you are able to make smarter decisions about your expenses and investments in the future
Being able to make the right financial forecasts
Now let’s be clear, not every circumstance and possibility can always be calculated and predicted since there are just too many variables. But, everything that can be predicted should be carefully assessed in order to have the best possible oversight on how you should plan your next steps. A good business accountant is able to understand where to look and how to deduct the overall outcome, and that is an extremely powerful tool for your business!
Negotiation with suppliers
When it comes to things like this, a savvy accountant is the best person you can have by your side. They can help you get the best deals regarding pretty much anything – from steeper discounts on bulk purchases to upgraded IT support. Your business accountant could also research various vendors, get bids from each, and compile them into such a comparison from which you can make more informed decisions down the road.
In the end, when it comes to ensuring that your business profits, it all comes down to investing in things that are worth investing in, and avoiding expenses that are not necessary. Of course, the only way for you to achieve this is to do proper research, and not base your decisions on your initial logical deduction – intuition is not always right.
All of that being said – hiring a professional business accountant is always a smart decision. It is something that can only benefit you, both to be relaxed and able to do your job more efficiently, as well as to help your business grow.
Get notified of all our new news by ringing the bell at the bottom right corner!
The Seeker Newspaper is located at 327 Second Street E., Cornwall, ON K6H 1Y8 -- All rights reserved The Seeker does not accept responsibility for errors, misprints or inaccuracies published within. The opinions and statements of our columnists are not to be presumed as the statements and opinions of The Seeker
ISSN 2562-1750 (Print) ISSN 2562-1769 (Online)