To achieve sustained success within the business world, entrepreneurial talent will get you far but without a firm grip on your company’s finances, this success may be short-lived. Having a specialist on board who can help you with matters such as your company’s cash flow, business taxes, overhead and more will not only ensure you are compliant with the relevant laws but will free up your time to focus on the areas of your business that you enjoy the most. This article will look at some of the ways an accountant can help your business.
Setting Up Your Business
An accountant can help you draw up a business plan when you are starting out. By offering an objective view on your business plans they can assess its financial viability and offer valuable advice on how to address potential problems or weaknesses. They can also advise you on the best funding options and make loan applications helping you finance your fledgling business.
One of the most important decisions a new business needs to make is deciding on a legal structure. An accountant can advise you of the best structure for your business, whether it be a sole proprietorship, partnership or limited liability company. Each structure will have unique financial and taxation implications so choosing the most suitable one for your business is key.
Managing Your Cash Flow
Without a steady cash flow businesses can quickly run into difficulties, as they may be unable to meet certain financial obligations such as paying their employees and suppliers, purchasing inventory or paying their bills. Cash flow statements are also important for investors in determining the profitability and future outlook of a business, and will influence their decision to invest in it or not.
An accounting firm such as these small business accountants in Brisbane can help improve your company’s cash flow in a number of ways. This might involve identifying and eliminating unnecessary expenditure, ensuring tax relief is optimized, creating suitable funding options and through improved financial forecasting.
While no business should be paying more tax than it needs to, underpaying could get it into trouble with the IRS. An accountant can provide you with the peace of mind that your tax affairs are in order and the correct amount is being paid each year. These experts can also help your business save money by making full use of all relevant deductions, losses, exemptions, credits, incentives and other legitimate strategies to ensure your business is as tax-efficient as possible.
A business will usually require additional funding in order to grow and expand its operations. This may involve securing a bank loan or seeking investment from private investors. In either event, the business must be able to make a strong financial case for itself and convince lenders or investors that they will see a return on their money.
An accountant can report on the financial health of your company giving relevant third parties the insights and information they need to help it grow. In addition, an accountant can also help your business with a sudden or unexpected growth spurt which may lead to cash flow and other problems.
As this article highlights, there are several ways an accountant can contribute to the overall success of your business.