You need an accountant while growing or managing your business, delegation of this is non-negotiable. The accounting aspect is a major task, and most people are interested in it and/or its activities. A few people appreciate doing the books, however for others it’s a huge task.
Also, the bigger your business gets the additional time to manage it, if you’re in retail and have a great deal of stock to account for and a sizeable finance, it can get complicated. With accounting software or technology, the accounting task is now easy, you can now track and monitor the essentials.
A great deal of the advantages of accounting software are geared towards preventing a crisis from happening.
BELOW ARE SOME REASONS YOU NEED AN ACCOUNTANT.
1. CASHFLOW
One of the important reasons you need an accountant is because of cash-flow, you need someone to monitor your revenues and expenses. Without knowing this, your business might head for a serious crisis, cash-flow keeps your business running.
This also enables you to know those that are owing. If you’re tracking this, you can be an easy target for late payers. If the money is not coming in, you won’t be able to fund your running costs like rents, salaries, operations e.t.c.
2. COMPLIANCE WITH REGULATIONS
Having an accountant helps you keep with the required financial regulations and make sure you’re compliant with the law. This saves you from nasty fines. Your accountant can also advice on the right amount of tax to pay.
3. BUSINESS SUPPORT AND ADVICE
One of the biggest benefits you need an accountant for is getting advice on how to plan for the future. Together, you can pull reports from past months and examine the seasonality of your business. Doing this will help you determine the best time to buy inventory and budget for big-ticket investments so you can stay competitive and viable.
4. SAVES TIME
Most people start businesses doing what they love, and what they’ve always dreamt of doing. For most people, this enthusiasm rarely extends to spending hours on financial records and paying taxes. You can just hire an accountant to take care of that for you.
5. AVOIDING MISTAKES
Also, you need an accountant if someone has underpaid you, your accountant will spot this quickly and have the paperwork to hand to back it all up. If someone accuses you of invoicing for the wrong amount, they can act quickly to rectify the situation whereas you can only look at it when you’re back in the office, when you’ve made that phone call, when you’ve completed that project.
As a business owner or manager, you are most times pre-occupied with day-to-day operations of running the business. However, an accountant can take a step back and objectively look at the big picture to find the best way to support the longevity of your business.
REFERENCE: Sage, Boox, Kashflow, Bizjournals.
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