Small business owners often tend to view the hiring of a finance professional as an extra expense that can be avoided, and usually try to manage finances themselves. But this can be a mistake. Financial matters are delicate, and poor management of it is very often the primary reason for businesses that fail in early periods.
An accountant is not an extra expense; rather, they can help your small business increase income by identifying operational inefficiencies. An accountant can be useful for small business owners in the following ways:
- Tracking the flow of cash. Your business' cash flow determines financial health and your potential to flourish and expand profits. The efficient record-keeping of a professional accountant can help you ensure that the cash flow doesn't run dry.
- Cost accounting is the process that entails the accurate calculation of fixed costs, variable costs, and costs of projects. If you don't get this right, you may end up losing money on big projects.
- A professional accountant can help you avoid potential theft and fraud by employees, suppliers or customers.
- The availability of accurate balance sheets, income statements and cash flow statements means that you can understand the state of your business and your financial health.
- Banks show more confidence in owners that seem to have a handle on the finances of their business.
- Accountants can better equip you to face auditing confidently.
If you own a small business, accountants in Toongabbie are here to help you!