There’s really only one reason to call an accountant: to improve your business performance. No matter what condition your business is in, things could be better. If you are raking in the profits with all the business you can handle, maybe it’s time to grow. If you are just making ends meet, it’s time to boost revenues and lower expenses. Your accountant can offer insightful guidance on your best options for financial health. Think of your accountant like a family doctor for your business.
Here are five reasons why you would do well to call your accountant for a financial health check.
1. Manage your cash flows optimally for good financial health.
Big expenditures weaken your company’s financial immune system. However, many business owners don’t realize that too much cash can also be dangerous. Cash flow problems are as common as catching cold, but they can quickly spiral out of control. Talk to an accountant soon about how much cash your business needs to stay healthy.
2. Don’t let yourself get overtaxed.
Many business owners automatically call an accountant at tax time, but smart business owners make decisions based on their accountants’ advice year round. Tax minimisation requires you to prepare carefully before you make any big moves, so make sure you seek out professional advice.
3. It might be time for your business to bulk up.
Every hurdle a business owner faces comes from one of two problems: not enough business or too much business. Do you need to bring in more customers or do you have so many customers that you can’t handle them all? An accountant has experience handling both revenue growth and capacity growth. Many businesses that failed might have survived with just a bit more financial advice and planning.
4. You have to get out ahead of the changing marketplace.
The only thing you can count on is change. There could be changes to regulations and tax codes that you may not fully understand. There might be new benefits for business owners that you are losing out on. Stay competitive and be aware of how healthy your business is at all times with the help of an accountant.
5. Your life and business are interconnected.
Major life changes normally involve changes in how you handle your business. Changes such as inheritance, marriage and divorce have both accounting and tax implications. Bring in an expert to help you handle these transitions.
Who are you going to call?
Knowing who (and when) to call is half the battle. Nobody can do it alone, and many businesses fail simply because they deviated from basic accounting principles. Sydney accountants have seen a great deal of businesses come and go. Now you can maintain the health of your business and gain a competitive edge by putting their experience to work for you.
These are the thoughts and opinions expressed by Kris Prasad.